Cost elements is a container that combines the Payable General Ledger number, Receivable General Ledger number, and a Reporting Alias. Using cost elements allows to the group on a high level on the reporting alias. At the same time simplify the registration of your Payable and receivable GL’s in the charge codes. Instead of entering the GL codes (numbers) manually each time you can limit errors in registration by selecting a describing cost element which fills the GL fields for you.
The option to specify General Ledger codes per JobType and/or Routing allows a system/financial administrator to set the values right once. Contracts do not have to be copied based on the routing (E.g. import/export) just for the sake of registering different General Ledger codes in the Charge Codes
How does it work?
When activating the cost elements for a CorpID the General Ledger fields in the Charge Code become read-only and the Cost Element is a required field. Based on the selected Cost Element the General Ledger fields in the Charge Code are filled.
When creating an Account line or changing the Cost Element for an existing one the General ledger code fields are filled based on the defaults registered in the Charge Code. The real functionality of the Cost Element starts when a purchase or sales invoice is being posted. At that moment RedSKy checks which General Ledger to use based on the JobType and/or Routing of the specific Service Order.
The below example of the functionality will use these settings.
Example 1:
JobType = European
Routing = Import
No specific settings for JobType nor Routing. Hence the default applies
Example 2:
JobType = International
Routing = Domestic
A specific setting is available for the combination of both JobType and Routing. Hence the General Ledgers specified for International Domestic (300533/400533) are applied
Example 3:
JobType = International
Routing = Import
A registration is made for JobType International but only in combination with Domestic. No specific match hence the default will apply.
Example 4:
JobType = Storage
Routing = Domestic
A registration is made for JobType Storage. As no Routing is set the ledgers for Storage (300532/ 400532) will apply.
Example 5:
JobType = Logistics
Routing = Third Party Storage
A registration is made for Routing Third Party Storage. As no JobType is set the ledgers for Third Party Storage (300532/ 400532) will apply.
Example 6:
JobType = Storage
Routing = Third Party Storage
For both JobType: Storage as for Routing: Third Party Storage an entry is made. In this case JobType prevails over Routing.
System setting
Activating the use of Cost Elements within the system needs to be done on the system default page (Security→System Default). Under the Accounting panel the check box ‘Cost Element’ needs to be checked. A new tab ‘Cost Element’ is added to the page ‘Reference’ (Administration→Reference)
Adding a cost element
Go to the page ‘Reference’ (Administration→Reference) and select the tab ‘Cost Element’. To add a cost element, click the button Add at the bottom of the tab.
The fields are:
| Cost Element | 7-character code. This code can be used as a short cut in the charge codes |
| Description | 30-character long description explaining what the cost element is |
| Reporting Alias | Description used to group when doing reporting and also functions as a filter (Only showing those Charge Codes related to Category/Reporting Alias) when adding charged code in an account line. |
| Receivable GL Code | Dropdown showing the Receivable General Ledger codes from the finance system. |
| Payable GL Code | Dropdown showing the Payable General Ledger codes from the finance system. |
Click Save to add the Cost Element to RedSky. The button Reset will empty the fields or undo unsaved changes.
Cost Element Grid
When adding or editing a cost element RedSky has the option to add a Grid. The Grid allows specifying the General Ledger Codes to use when creating the journal. This specification can be made by JobType, Routing or combination thereof.
Clicking the Add Grid will open a new window displaying the specified JobType/Routing specific settings and allowing to add or modify them.
Add a Grid Line
Both clicking Add button and the GL Rate Grid Details tab will display the option to add a specification on the General Ledgers to use.
Company Division Dropdown containing the Company Division values
JobType Dropdown containing the JobType values
Routing Dropdown containing the Routing values
Receivable GL Dropdown containing the General Ledger values
Payable GL Dropdown containing the General Ledger values
Clicking the Save button will store the values in the database. The reset button will undo all unsaved changes
Edit a Grid Line
As displayed in Picture 3. the user has the option to click the JobType. This will open the GL Rate Grid Tab with the stored value for the line being edited. The user can now make changes to the value stored.
Deleting a Grid Line
The user can delete a saved specification by clicking the trashcan at the end of the line.
Modifying a cost element
Go to the page ‘Reference’ (Administration→Reference) and select the tab ‘Cost Element’. To modify a cost element, click the Cost Element field in the first column of the grid. Changing a field will have the following consequences.
| Cost Element | Depending on the setup the cost element can be used in the journal export. Changing field names should always be discussed with finance. |
| Description | The description is changed. When choosing a cost element in a charge code the new description will be displayed. |
| Reporting Alias | The costs related to the cost element will be displayed in the new reporting alias for reports that will be retrieved from RedSky. |
| Receivable GL Code | The Receivable GL in the Account line for non-posted invoices will be updated |
| Payable GL Code | The Receivable GL in the Account line for non-posted invoices will be updated |
Click Save to save the changes made to Cost Element. Not confirming the security question ‘Do you want to update the associated charge codes’ with Yes will only apply the change to new charge codes. Although possible it is not advised to choose No.
Reset will reload the page with the original (last saved) values.
Deleting a cost element
Go to the page ‘Reference’ (Administration→Reference) and select the tab ‘Cost Element’. To delete a cost element, click the Bin in the last column of the grid. Deleting a cost element is only possible if it’s not in use in any of the charge codes.
Charge Codes
Charge codes are used to pre-populate the lines that have to appear on an invoice. Either they contain a brief description and are linked to a General Ledger or they contain an agreed price for a service with a specific corporate account.
Adding Charge Codes to a contract
A charge code can be selected in the Accounting tab of a Service Order. Before being able to do this the Charge Code needs to be added to a contract. In order to do this; select a contract (Administration →Contract) and select the Charge List tab and click ‘Add’.
Settings
Part of the charge code where the primary data is registered
Charge Detail (Administration →Contracts→Charge List→Charge Detail)
| Charge | 7-character code. By entering this code user can select Charge Code in the ‘Line Details’ page. It’s also displayed on the ‘Accounting’ overview. Unique per contract. |
| Description | Description of what is being charged. Displayed when the search function is used to select charge code on the ‘Line Details’ page. It’s also displayed in the description field in the ‘Receivable Detail’ and ‘Payable Detail’ panel on the ‘Line Details’. |
| Contract Name | Displays the contract the charge code is related to. The field is pre-filled from the contract |
| Bucket | Code for the external interface. E.g. Account wants Freight Charges to be summarised. For reporting the cost element and reporting alias can be used instead. |
General Ledger and Control Data (Administration →Contracts→Charge List→Charge Detail)
In this section, the financial settings and control data are added to the charge code.
| Cost Element | If the cost element is activated in CorpID. The cost element can be entered or searched here. Entering the cost element will fill the Receivable GL Code and Payable GL code. Charge Code will now be linked to reporting alias of Cost Element as well. |
| Description | Description of cost element. Field will be filled when selecting the Cost Element. |
| Receivable Currency | Currency of the receivable amounts mentioned in the Charge Code. It’s pre-filled from the associated contract. When selecting the Charge Code in the accounting lines this currency will be entered as receivable contract currency |
Payable Currency | Currency of the payable amounts mentioned in the Charge Code. It’s pre-filled from the associated contract. When selecting the Charge Code in the accounting lines this currency will be entered as payable contract currency |
Receivable GL Code | If Cost Elements are used then this field will be pre-filled based on the selected Cost Element. If not then it shows a dropdown allowing to choose from the available receivable general ledger code. |
Payable GL Code | If Cost Elements are used then this field will be pre-filled based on the selected Cost Element. If not then it shows a dropdown allowing to choose from the available payable general ledger code. |
| Mode | Dropdown showing modes. Selecting a mode will limit the usage of the Charge Code to only those Service Orders that have this mode. |
| Storage | Van Line / US functionality |
| Storage Type | Van Line / US functionality |
| Include in LHF | Van Line / US functionality |
Don’t Print on Invoice | Van Line / US functionality |
| Origin Country | Dropdown showing country names. Selecting a country will limit the usage of the Charge Code to only those Service Orders that have this country as the Origin Country. |
Destination Country | Dropdown showing country names. Selecting a country will limit the usage of the Charge Code to only those Service Orders that have this country as the Destination Country. |
| Commission | Van Line / US functionality |
| Commissionable | Indicates if commission should be calculated |
| Country Flexibility | In combination with the above country filters the Country Flexibility determines the filter. If the value is TRUE the Charge Code will only show when both Origin and Destination match. If the value is FALSE only 1 of the two has to match. Note: set value to false if only 1 of the 2 country fields is filled out. |
Charge Calculation
In this panel the charge calculation is setup. The setup is divided into 6 sub sets.
Primary Quantity (Administration →Contracts→Charge List→Charge Detail)
The first set is that of the quantity (times the rate needs to be applied). The (Primary) Quantity consists out of three parts. The amount for the entitlement, Estimate and Revised
Unit: Field is no longer in use as it was carried over from the old system.
Ask User?: When clicking the Compute button on the ‘Line Detail’ page the user is requested to enter the quantity via pop-up module.
Preset: The amount entered in the field is the default for the Quantity field on the ‘Line Detail’ page
From Field: The value selected determines from which Service Order field the value is copied to the Quantity field on the ‘Line Detail’ page.
Secondary Quantity (Administration →Contracts→Charge List→Charge Detail)
Some rates structures consist out of a 2-dimensional matrix. In RedSKy a road rate matrix having the distance and volume as the
parameter can be used. For the Secondary Quantity either the distance in kilometres or miles can be chosen.
2D Unit: Select the distance field that contains the distance to be collected from the Service Order.
Price: The ‘ Price’ panel allows for different methods to get the amount to be charged.
Ask User?: When clicking the Compute button on the ‘Line Detail’ page the user is requested to enter the rate via pop-up module.
Preset: The rate entered in the field is the default for the Sell Rate field on the ‘Line Detail’ page. ToDo: Update when contract and invoice fields have been added.
Basis: The value selected here will be entered in the basis field of the Account Line once compute is clicked.
From Field: Not functional yet
Rate Grid: ToDo
Build Formula: ToDo
The field Basis displays the values which can be set as default in the Basis field on the page ‘Line Detail’. It will however NOT prefill the Quantity field (which has a relation with the Basis field). ToDo: Purpose unknown Question RedSky.
VAT (Administration →Contracts→Charge List→Charge Detail)
For some charges, like insurance, are VAT exempt.
VAT Excluded Checking this checkbox disables the VAT calculation on the ‘Line Detail’ page.
Amount Adjustment factors (Administration →Contracts→Charge List→Charge Detail)
This is used in combination with either the rate grid or storage billing.
Multiplying Factor
None: No multiplication is applicable. The quantity field in the Account line will be filled with 1.
Primary Quantity: The quantity field in the Account line will be filled with based on the outcome of what is defined under primary quantity
Secondary Quantity: The quantity field in the Account line will be filled with based on the outcome of what is defined under secondary quantity.
Both Primary and Secondary: The quantity field in the Account line will be filled with based on the multiplication of what is defined under primary quantity * what is defined under secondary quantity.
Minimum: For storage billing when creating the account line, it will check if the Rate * On Hand Amount * Months to Bill is lower than the entered minimum the account line will be created with the minimum as the rate or else it will use the calculated amount.
Deviation Factors(Administration →Contracts→Charge List→Charge Detail)
A charge code has a fixed rate. RedSky offers the possibility to register country specific deviations from the base rate. The alternative would be to have a Charge Code for each specific country rate.
Deviation Type: Indicate which of the country (Origin/Destination) deviation is applicable.
Sell Rate Country Deviation: Set deviation for country. See chapter 6.2.3 Country Deviation for more details.
Buy Rate Country Deviation: Set deviation for country. See chapter 6.2.3 Country Deviation for more details.
Buy Rate dependent on Sell Rate
VanLine Factors (Administration →Contracts→Charge List→Charge Detail)
The VanLine Factors are Van Line / US functionality
For the VanLine calculation the following fields are available
Charge Cost Level Not functional yet
Apply Discount Not functional yet
Get Service Area Data Not functional yet
Item Not functional yet
SubItem Not functional yet
Amount Description (Administration →Contracts→Charge List→Charge Detail)
This section allows to generate a description in the accounting line. If the Amount Description is used it will prevail over the description entered at the Type Description field.
ToDo: Field description list of parameters. Question RedSky
Rate Grid
Country Deviation
Part of the charge code functionality is the option to set deviations of the base rate per country. Clicking the Sell Rate Country Deviation or the Buy Rate Country Deviation will open a new tab in the browser. The check box Purchase Deviation disabled. It will be checked when the Buy Rate Country Deviation was clicked.
Add Country Code
Clicking the Add button adds a new row to the grid. Select the country and enter the country deviation. For a deviation of 10% enter 110.00.
Save
To Save the country entries click Save.
Remove
To remove an entry click the check box and click the button Remove.