Charge/Credit Code

About Charge and Credit Codes

Draw charges, returns, recurring charges, miscellaneous charges, account levies, finance charges, minimum daily draw charges and taxes must all be assigned charge codes using this option. Charge codes for most account charges and credits are defined in Charge/Credit Code setup. This includes all charges and credits that appear on an account bill, except payments, credit memos and discounts. Charge amounts are not defined here, however. The different types of charge codes set up here include:

• Draw charges, which are used to bill accounts for newspapers delivered. This includes office pay credits, return credits and draw adjustment charges/credits. Draw charge codes should not be used as miscellaneous or recurring charge codes; both the Recurring and Miscellaneous fields should be set to “n”. GL account information does not need to be specified, as it is defined elsewhere for draw. Draw charge and credit amounts are automatically calculated by account rating.

• Recurring charges, which are used for credits or charges that are the same each billing period; for example bonds and insurance. The Recurring field should be set to “y” and the Miscellaneous field to “n”. These codes should have a mirror code that is miscellaneous. For example, if an account was set up to be charged 4.00 for insurance instead of 0.40, a miscellaneous charge for insurance would be entered to adjust the carrier/dealer account. These codes must always have a GL account set up. Recurring charge amounts are assigned individually in account setup (see Account).

• Miscellaneous charges, which are entered for accounts on an ad-hoc basis in Miscellaneous Charge (see the User Manual). The Miscellaneous field should be set to “y” and the Recurring field to “n”. These codes should always be set up in pairs, such as BagsDR and BagsCR. This allows the clerks to correct any posting errors and at the same time the correction will affect the correct GL account. These codes must always have a GL account specified.

• Account levy charges. Levies are court-ordered deductions to a carrier/dealer’s net income used to pay such things as child support or auto loans. Levy charge codes must have the Levy flag set to “y”, and a GL account should be specified. Levy amounts are assigned in Account Setup (see Account).

• Finance charges, tips, and minimum daily draw charges. Both the Recurring and Miscellaneous fields should be set to “n” for these charges, and GL accounts must be specified. Amounts for these charges are assigned in Business Rules.

• Taxes. Both the Recurring Miscellaneous field should be set to “n” for these charges, and GL accounts must be specified. Tax amounts are defined in Tax Authority (see Tax Authority).

• Interest charge codes, which are used to calculate interest for other charge codes. For example, an account bond charge (typically recurring) may have an interest charge code that adds interest to the account’s bond balance. Interest codes must always have a GL account set up. The Recurring field should be set to “n”, and Miscellaneous field to “y”. In addition, the charge code that the interest charge code updates should be entered in Update Bal Chg Code and Update AR should be set to “n”.

Charge Code Examples

The charge/credit codes themselves are used to classify and report on the various charges and, in some cases, they specify the GL account to be used with the charges.

As an example of how you might set up a charge code, suppose you have a miscellaneous charge for supplies of bags. This charge should be applied to Accounts Receivable (in the GL). Suppose further that you charge accounts 15.00 per month for bond insurance and that you pay interest on any accumulated bond balance on the account. In this case, two charge codes should be set up—a bond charge code and a bond interest credit code that updates the bond charge balance rather than Accounts Receivable.

To embellish the example even further, let us also add a draw charge and a route bonus, which both affect 1099 forms for accounts. To indicate that the draw charges should be included in Box 9 of the 1099 form, you would enter “y” in Include In Resale Value. The route allowance credits should be included in Box 7 of the 1099 form, so you would enter “y” in Include in Payments. The charges and credits would be set up as follows:

Charge Code	Bands	BondChg	BondInt	Drawchg	Bonus
Start Date	01-01-07	01-01-07	01-01-07	01-01-07	01-01-07
End Date
Description	Rubber bands	Bond charges	Bond interest	Daily Draw charge	Route allowance
Charge or Credit	Charge	Charge	Charge	Charge	Credit
Default Rate	0.95	15	0	0	0
Include in Resale Value	No	No	No	Yes	No
Include in Payments	No	No	No	No	Yes
Recurring	No	Yes	No	No
Default Bill Period		1 (Monthly)
Default Advance Bill		No
Charge Rate Type		Flat
Calculation Type		Flat
Default Percentage
Default Max Factor
Print Balance on Bill		Yes
Refund Charge Code
Miscellaneous	Yes	No	Yes	No	Yes
Apply AR Now	No		No		No
Print on Bundle	Yes		Yes		Yes
Update Balance Charge Code			BondChg
Update AR	Yes		No		Yes

Setting up a Charge or Credit Code

Follow the procedure below to define a charge or credit code.

To set up a charge or credit code:

1. In character Circulation, select Charge/Credit Code from the Account Billing menu to display the Charge Code Setup screen.

   
2. Select Add and complete the following fields.

   Field	Type	What to enter
   CHARGE CODE	open (8)	Enter a charge code ID for this credit/charge, such as “bond”.
   START DATE, END DATE	date	Enter the date range during which this charge/credit code may be used.
   DESCRIPTION	open (30)	Enter a description of this charge/credit code. The description appear on the account bills.
   LEVY, LEVY ORDER	yes/no integer (5)	If you are defining a charge code for an account levy, enter “y” in Levy and specify the levy order, which defines the order in which the levy should be imposed in relation to other levies. For example, a court may stipulate that child support levies be deducted from wages before levies for loans. None of the fields after Levy Order will be open for levy charge codes.
   CHARGE OR CREDIT	predefined	Indicate whether this charge code is a charge or a credit. This determines whether the account is debited or credited by the charge/credit amount.
   DEFAULT RATE	decimal (11)	If desired, enter a default rate that should be displayed during miscellaneous charge and credit entry or when recurring charges are linked to accounts.
   INCLUDE IN RESALE VALUE	yes/no	Indicate whether charges/credits with this code should be included in Box 9 on the 1099 form.
   INCLUDE IN PAYMENTS	yes/no	Indicate whether charges/credits with this code should be included in Box 7 on the 1099 form.
   RECURRING	yes/no	Indicate if this is a recurring charge/credit (a charge or credit that is applied regularly). Enter “n” here for all except recurring charges/credits.
   DEFAULT BILL PERIOD	setup	If this is a recurring charge, enter the default bill period in which this charge should be added to account bills.
   DEFAULT ADVANCE BILL	yes/no	When recurring charges are assigned to accounts, you can specify whether or not they should apply to advance bills. Indicate whether this field should default to “y” or “n”.
   CHARGE RATE TYPE	predefined	Indicate if this recurring charge/credit is for a flat amount, a percentage of draw, a per-drop compensation amount, or multiplied by the total draw of the route.
   CALCULATION TYPE	predefined	Flat is displayed if you entered “flat” or “drop” in the preceding field. If you entered “percentage”, indicate whether the recurring charge/credit should be a percentage of draw charges or draw credits. For example, for a bond, you might want to have a monthly charge that is a percentage of the account’s office pay credit (i.e., draw credits).
   DFLT PERCENTAGE	decimal (5)	If the rate type is percentage, enter the default percentage for the recurring charge/credit (the actual percentage is entered for each account in account setup).
   DFLT MAX FACTOR	decimal (5)	If the rate type is percentage, enter a default maximum factor for the recurring charge/credit (the actual maximum factor can be entered for each account in account setup). The maximum factor is multiplied by the draw charges or credits to determine the total maximum balance allowed for the charge.
   PRINT BAL ON BILL	yes/no	Indicate whether or not the balance for the recurring charge should print on the account bills.
   REFUND CHARGE CODE	—	This field is not currently used by Circulation.
   PRORATE CHARGE	yes/no	Indicate whether this recurring charge is prorated. When a charge code is prorated, the number of days in the billing period and the number of days the account is active are compared. If there is a difference, the flat rate is divided by the days in the period and multiplied by the days the account is active to arrive at the prorated amount.
   MISCELLANEOUS	yes/no	Indicate whether this charge/credit code is valid for miscellaneous charges. Enter “y” here for all miscellaneous charges and credits.
   APPLY AR NOW	yes/no	For miscellaneous charges/credits, indicate whether the charge/credit should be applied immediately to the account balances or deferred until account billing Processing for the billing period. For example, you might set up a miscellaneous charge code for writing off account balances, and enter “y” in this field.
   PRINT ON BUNDLE	yes/no	Indicate whether this miscellaneous charge/credit code should appear on the bundle top.
   UPDATE BAL CHARGE CODE	setup	You may have a miscellaneous charge code for updating a recurring charge balance. For example, if you have a recurring bond charge, you might have a miscellaneous charge code for moving the bond balance to accounts receivable (crediting the carrier). If this miscellaneous charge updates a recurring charge balance, enter the recurring charge code here.
   UPDATE AR	yes/n	If this miscellaneous charge updates a recurring charge, indicate whether the Accounts Receivable should also be updated. For example, if you have a miscellaneous charge to credit carriers for their bond deposit balance, you would enter “y” here. If you are transferring the balance elsewhere (for example, entering the amount in Accounts Payable so that a check can be cut) enter “n” here.

3. Optionally, select Specifics | BAS Category, as documented below, to assign BAS categories to the charge codes (BAS categories are used in tax reporting in Australia).

4. Select Specifics | Charge GL Account to link the charge code with a GL account, if necessary. For each charge/credit code you set up, you must define a Charge GL Account, except for draw charges/credits (whose Charge GL Accounts are defined by selecting CR GL Account) and finance charges.

5. Select Specifics | Charge Tax Authority to link the charge code with a tax authority, if this charge is taxed. Do not select this if you are defining tax charge codes themselves.

6. If you use drop credits (flat fees paid for each home address delivered, without regard to the number of pieces that are delivered to the address), and wish to combine draw and drop credits on invoices, you can select Specifics | Charge Code Combine to combine them by charge code. This will enable you to report separate totals for different draw types or days of the week.

7. Select Accept to enter the charge code and all associated specifics into the database.

8. Set up another charge or credit code, or press F4 and select Exit to exit to the Setup menu.

Specifics, BAS Category

Note: This menu option is not available in the Cloud environment.

Select this option to add BAS categories to charge codes. BAS (Business Activity Statement) categories are used in reporting tax obligations to the Australian Taxation Office. If a BAS category is associated with a charge code, those charges will be picked up when the BAS Reconciliation report is run. BAS categories are set up in BAS Category setup (see BAS Category).

To assign charge codes to BAS categories:

1. Select Specifics | BAS Category from the Charge Code Setup screen to display the BAS Category Setup screen.

   
2. Select Add and complete the following fields.

   Field	Type	What to enter
   CHARGE CODE	display	The charge/credit code entered on the Charge Code Setup screen is displayed.
   BAS CATEGORY	setup	Enter the BAS category associated with this charge code.
   START DATE, END DATE	date	Enter the date range during which this BAS category is valid for this charge code. End Date can be left blank.

3. Select Accept to accept the GL account for this code.

4. Add another BAS category to this charge, or press F4 and select Exit to return to the Charge Code Setup screen.

Specifics, Charge GL Accounts

Select this option to set up the general ledger account numbers for this charge/credit code. GL accounts can be set up for a charge/credit code by product, route, AAM Zone, district or a combination of the four. Or, you can have one GL account for all instances of this charge.

The general ledger accounts you enter here must have been defined in advance by selecting Chart of Accounts. Also, do not set up Charge GL Account records for draw charges, credits, and returns, as these are defined by selecting CR GL Account. See CR GL Account for details.

To specify GL accounts for the charge code:

1. Select Specifics | Charge GL Accounts from the Charge Code Setup screen to display the Charge GL Accounts Setup screen.

   
2. Select Add and complete the following fields.

   Field	Type	What to enter
   CHARGE CODE	display	The charge/credit code entered on the Charge Code Setup screen is displayed.
   PRODUCT	setup	Enter the product for which this charge/credit code should update this general ledger account (enter “*” for all).
   AREA REGION DISTRIB ZONE	setup	Enter the area, region, distrib zone, and district for these GL accounts (enter “*” in a field to indicate all).
   DISTRICT	setup	Enter the district for which this charge/credit code should update this general ledger account (enter “*” for all).
   ROUTE	setup	Enter the route for which this charge/credit code should update this general ledger account (enter “*” for all).
   AAM ZONE	setup	Enter the AAM zone for which this charge/credit code should update this general ledger account (enter “*” for all).
   GL ACCOUNT	setup	Enter the general ledger account number to which charges/credits with this charge code will be applied for this product/route/AAM zone/district combination.
   ADVANCE BILL ACCOUNT	setup	If accounts are billed in advance for this charge code, enter the general ledger account number to which this advance charge/credit will be posted.

3. Select Accept to accept the GL account for this code.

4. Link more GL accounts to this charge, or press F4 and select Exit to exit to the Charge Code Setup screen.

Specifics, Charge Tax Authority

For charges or credits that should be taxed, select this option to link the charge/credit code with a tax authority and tax charge code. Tax authorities must have been defined in advance. See Tax Authority for details.

To specify tax information for a charge code:

1. Select Specifics | Charge Tax Authority from the Charge Code Setup screen to display the Charge Tax Authority Setup screen.

   
2. Select Add and complete the following fields.

   Field	Type	What to enter
   PRODUCT	setup	Enter the product for which this charge/credit code is taxable (enter “*” for all products).
   ROUTE	setup	Enter the route for which this charge/credit code is taxable (enter “*” for all routes).
   CHARGE CODE	display	The charge/credit code entered on the Charge Code Setup screen is displayed.
   TAX AUTHORITY	setup	Enter the tax authority for this charge code/product/route combination. The tax authority determines what the tax percentage will be. It also determines the geographical area that will qualify for the tax.
   TAX CHARGE CODE	setup	Enter the charge code for this tax charge. This will allow you to break out taxes for specific charges on account invoices. Tax Charge Code may be left blank—the tax charge code defined for the tax authority assigned to the publication will then be used. If you would like the office pay tax credit printed separately from charges, separate tax charge codes should be defined.

3. Select Accept to accept the tax authority for this charge code, product and route.

4. Specify more tax authorities for this charge/credit code, or press F4 and select Exit to exit to the Charge Code Setup screen.

Specifics, Charge Code Combine

When combining draw and drop credits on invoices, you have the option of combining them by charge code. This will enable you to report separate totals for different draw types or days of the week.

The Charge Code Combine specific allows you to identify which codes should be combined on invoices. It also allows you to enter a description of the combined codes, which will be printed on the invoice.

For example, if you intend to combine draw and drop credits for Monday through Friday deliveries, you could set up the following combinations:

• “DropMon” combined with “DropMon”—this will be the parent/anchor code for which there is a description (e.g., “Combine Drop Amounts Mon - Fri”). Note that a description can be entered only for parent/anchor codes.

• “DropTue” combined with “DropMon”

• “DropWed” combined with “DropMon”

• “DropThu” combined with “DropMon”

• “DropFri” combined with “DropMon”

To specify charge codes to be combined on an invoice:

• Select Specifics | Charge Code Combine to display the Charge Code Combine Setup screen. When this screen displays initially, the Charge Code will be carried over from the Charge/Credit Code screen. In the Combine Charge code field, enter the code you want to combine with this parent/anchor code. Enter a start date and optional end date for this combination.

  
• Select Add and complete the following fields.

  Field	Type	What to enter
  COMBINE CHARGE CODE	setup	Select the charge code with which this charge code should be combined.
  START DATE, END DATE	date	Enter the date range during which the charge codes should be combined. End Date can be left blank.
  CHARGE CODE	display	The charge/credit code entered on the Charge Code Setup screen is displayed.
  COMBINE QUANTITY	yes/no	This field determines how the quantity count for the charges/credits is displayed on the invoices. Entering “y” will combine the charges/credits into a single quantity. In the above example, combining quantities will result in the total number of Monday-Friday drops being displayed as the quantity. Whether or not to combine quantities depends on how you are combining codes and the type of information you want to appear on the invoice. For example, you would enter “n” on either the drop credit or draw code side if you are combining drops and draw into one dollar value but only want to see one side of the quantity count on the invoice. If 110 subscriptions were delivered to 100 addresses, combining these two quantities would result in a meaningless total of 210. Since you want either 110 (the draw quantity) or 100 (drops) to appear as the quantity next to the dollar value on the invoice, you would enter “n” here, so that the quantities are not combined. You would also enter “n” here if you are combining draw charges and draw credits. Assuming these figures cancel each other out, the result will be a “0” quantity. More likely, you would want to show the quantity for only one side of the transaction—either the charges or the credits.
  DESCRIPTION	open	Enter a description for this combine record.

• Select Accept to combine the charge codes.

• Specify other charge codes with which this charge code should be combined, or press F4 and select Exit to exit to the Charge Code Setup screen.