Creating Receivable and Payable Charge Types

Receivable Charge Types are used when entering charges on a customer invoice, and designate what type of service the charge is associated to. When using charge types, designations can be made to determine the methods of calculation, default rate, and currency.

Payable Charge Types are used when entering bills or payables on a dispatch and can also designate what type of service was used and also determine the methods of calculation and currency.

Tailwind CMS provides you with a small group of default receivable and payable charge types. It is inevitable that you will have your own agreements with customers which require the population of new receivable charge types. You will also have agreements with vendors, owner operators, and staff that require the population of new payable charge types. With Tailwind CMS, you can add as many of each type as you require, all using the System Configuration tool located within the ‘View’ section. Let’s start with adding receivable charge types.

Receivable Charge Types

Open System Configuration and, within the ‘Financial’ section of the tree on the left, select ‘Receivables’ then select ‘Receivable Charge Types’. Doing so will bring up the the list of receivable charge types set up within your own Tailwind CMS, as in the image below:

In order to add a receivable charge type, select the ‘Add Receivable Charge’ button. That will cause the ‘Receivable Charge Type’ window to appear, as in the image below:

In this example, a Receivable Charge Type called ‘Tarping’ which will apply a $100 charge to any load that requires any tarping will be added. To do that, we populate the fields with the appropriate data, as in the image below:

The ‘Units Default’ remains ‘Custom (Zero)’ and is set to 1.0000. The Unit Rate Default also remains ‘Custom (Zero)’ and is set to $100.00000. This means that this is a charge that, when applied, will generate 1 x $100.00. The ‘Category’ field is used to determine whether or not commission can be applied to this type of charge. In this case, it has been set to ‘Commissionable Sale’, therefore any salesperson who arranges an order that requires tarping can make an agreed-upon percentage of this cost as part of their commission.

Once the Receivable Charge Type is completed, hit ‘Save & Close’ and it will appear in the list of Receivable Charge Types as below:

Any Receivable Charge Type on this list can be altered or even deleted. To delete a receivable charge type, just click on the charge type you wish to delete and click the ‘Delete Receivable Charge’ button. This will permanently delete this Receivable Charge Type.

To alter a Receivable Charge Type, double click on it. That will make the ‘Receivable Charge Type’ window to appear for that particular charge type. From there, you can change and update the charge type to your own specifications and requirements.

The default charges are set automatically, but they can be changedif there is another receivable charge type that better suits your description.

To see how Receivable Charge Types can be applied to an Order, go to the “Create an Order” section here: Create an Order.

Payable Charge Types

The Receivable Charge Types section touched on the idea of commissions when explaining the “Tarping” charge’s ‘Category’. Commissions are grouped under the Payable Charge Types. These can be applied to a salesperson, a company driver, or an Owner Operator. As with Receivable Charge Types, you can customize and add any Payable Charge Types that you require.

You can access Payable Charge Types in the same way that you accessed Receivable Charge Types. Go to System Configuration, select the ‘Financial’ section, select ‘Payables’ within that section, then select the ‘Payable Charge Types’ option, which will appear as in the image below:

Adding a Payable Charge Type follows the same procedure as adding a Receivable Charge Type. Select ‘Add Payable Charge’, which will cause the ‘Payable Charge Type’ window to appear, as in the image below:

In this case, a Payable Charge type called Sales Commission of 8% is going to be created. To do this, the fields are populated like so:

The ‘Units Default’ remains as “Custom (Zero)” and is set to 0.0800. The ‘Unit Rate Default’ is changed from “Custom (Zero)” to “Revenue”. This means that this charge type will apply a commision 0.08 (or 8%) to the revenue of a particular order. Changed the ‘Unit Rate Default’ from “Custom (Zero)” to “Revenue” also causes a new section of the window to appear which details what aspects of revenue this commission will be applied to. It will appear as in the image below:

In this case, the salesperson will make 8% of the revenue accrued when the revenue is generated using Declared Value, Freight Charge, or Tarping. If there are any other receivable charge types which make up the revenue, such as ‘Fuel Surcharge’, the salesperson will not receive commission on that aspect of the revenue. Their commission will be limited to only the three selected charge types. Once this is done, hit ‘Save & Close’ and the charge will now appear in the list of Payable Charge Types in System Configuration, as in the image below:

As you can see, ‘Sales Commission – 8%’ has been added to the list.

To see how to use Payable Charge Types to set up Automatic Payables for personnel, such as a salesperson earning commission, see the “Automatic Payables” section here: Automatic Payables.