--- title: "Purchase Order Added Costs - Setup and Configuration" canonical: "https://kb.myframeworks.com.au/space/FRAM/72744978/Purchase%20Order%20Added%20Costs%20-%20Setup%20and%20Configuration" format: markdown --- # Overview Purchase Order (PO) Added Costs enables automatic application of additional purchasing charges such as freight, minimum order surcharges, and restocking fees to purchase orders. Frameworks calculates these costs based on configurable rules and applies them during order creation and receipting processes. > ⚠️ This functionality is NOT feature-driven. # Requirements Before PO Added Costs can be used the following system administration activities marked (*required*) must be completed. Also, depending on your business requirement, there are some recommended (*optional*) settings. > Macro (toc) ## User Maintenance ### Purchase Supervisor Authority (*Required*) **Navigation Path**: System Administration > Users & Security > User Maintenance Users are required to be a **Purchase Supervisor** to maintain added costs on purchase orders and configure cost breakdown rules. This is configured under the **Purchasing & Receipting** section of **User Maintenance** > ✅ Refer to [https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28378032](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28378032) for security group configuration. --- ## System Setup ### Create a Cost Product Group (*Recommended*) **Navigation Path**: System Administration > System Setup > Inventory > Product Group Maintenance While you can use an existing product group we do recommend that you define a new default product group to be used for the automatically created miscellaneous products when purchase cost IDs are created in Purchase Cost Maintenance. > ⚠️ **Important: **The new product group must be a **Non Balanced Stock Group**. ### Define the Cost Default Product Group (Required) **Navigation Path**: System Administration > System Setup > Configuration > System Settings - General The following **General** system setting is required to be configured: - **CstDefPG: **Enter the **Product Group ID** to be used as the default product group value for miscellaneous products created when new Purchase Cost ID is created in Purchase Cost Maintenance. > ⚠️ **Important: **The entered product group must be a **Non Balanced Stock Group**. --- ## General Ledger ### Create GL Clearing Accounts (*Recommended*) **Navigation Path**: General Ledger > Maintenance > Chart of Account When creating **Purchase Cost IDs**, you need an associated GL Clearing Account for each branch. Configure the required GL Clearing Accounts before adding them to your **Purchase Cost IDs** to ensure proper posting of additional costs during receiving processes. > ✅ Refer to [https://sterlandsupport.atlassian.net/wiki/spaces/fwksproau/pages/30510074](https://sterlandsupport.atlassian.net/wiki/spaces/fwksproau/pages/30510074) for the GL Account setup. --- ## Payables ### Define any Subcontractor Suppliers (*Recommended*) **Navigation Path**: Payables > Maintenance > Supplier Maintenance If you are using subcontractors for freight charges, In supplier maintenance, you’ll need to create the subcontractor the same way you would a normal supplier. Once created the Subcontractor suppliers can be applied to the relevant **Purchase Cost Defaults**. > ✅ Refer to [Supplier Maintenance](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/28390076) for subcontractor configuration. --- ## Purchasing & Receipting ### Define the Purchase Cost IDs (*Required*) **Navigation Path**: Purchasing & Receipting > Maintenance > Purchase Cost Maintenance Maintains master list of purchasing cost codes and their associated GL Clearing Account codes by branch. These codes define the types of additional costs that can be applied to Purchase Orders, Stock Returns or Value Claims. ![image-20250901-061851.png](media://ff514e52-0dd9-4be4-8e9d-bb0bac21994b) To define a purchase cost code, perform the following: 1. Click **New** to create a new cost code. 2. Enter a **Purchase Cost ID **code and a **Description **to help identify what the code is for. 3. Enter or search for the required **Clearing Account **GL code for each branch. > ℹ️ When creating a new **Purchase Cost ID,** a miscellaneous product record is created in **Product Maintenance **with the default product group defined by the System Settings - General code **CstDefPG. **You can search for pre-existing **miscellaneous **products to use as the **Purchase Cost ID.** > ✅ Refer the [Purchase Cost Maintenance](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/104693762) Layout and Field guide for more information. ### Define the Purchase Cost Defaults (*Required*) Defines specific rules for automatically applying added costs to Purchase Orders, Stock Returns or Value Claims based on supplier, product group, transaction type, and calculation methods. **Navigation Path**: Purchasing & Receipting > Maintenance > Purchase Cost Defaults ![image-20250902-042017.png](media://1c5ec80a-47ad-464f-825d-04322c136362) To configure a purchase cost application rules, perform the following: #### Basic Rule Configuration 1. Select the **Branch **where the added cost will be applied. 2. Enter or search for the **Purchase Cost ID** code to ensure the correct GL movements. 3. Select the **Tran (Transaction) Type **the added cost will be applied to. 4. Enter or search for the specific **Supplier** to apply the cost to. #### Product Group Configuration 5. Enter or search for the **Product Group and Sub Group **that the added costs will apply to. Leave blank to apply to all product groups. #### Order Value and Calculation 6. Define the maximum **Total Order $** value for applying the added cost. If Purchase Orders, Stock Returns or Value Claims exceed this threshold, the added cost is not applied. Leave as $0.00 to apply to all order values. 7. Select the calculation **Method **(percentage, total amount, per KG, per M3) from the dropdown menu and enter the **Factor **(amount) used to calculate the added cost. #### Advanced Options 8. Enable the **Use Creditors Checkbox** to create creditors ledger entries. Leave disabled for direct GL posting only. Required for **Subcontractors.** 9. Enable the **Per Delivery Checkbox** to apply the full charge to each receipt. Leave disabled for the charge to be allocated proportionally across receipts > ℹ️ **Note: **Available for the **Total **Method only. 10. Enter or search for the **Subcontractor **supplier who provides the service of the added cost (optional). Use with percentage/weight/volume calculation methods. 11. Enter the **Maximum Charge Value** (ceiling) for percentage/weight/volume calculations. Leave at 0 (Zero) for no maximum. > ✅ Refer the [Purchase Cost Defaults](https://sterlandsupport.atlassian.net/wiki/spaces/FRAM/pages/104759302) Layout and Field guide for more information. --- # Additional Information Refer to the Added Costs User Manual for detailed operational guidance including advanced configuration options, subcontractor receipting procedures, and comprehensive troubleshooting.