Line Charge Requirements
Compile a list of all the types of charges and amounts that are applied to line items. These charges are known as line charges, which are additional fees imposed on a line item. They can include any type of charge at the line-item level, such as painting, polishing, setup, handling fees, or special order fees such as hazardous material handling charges.
Example: A quantity of 1,000 pieces of item B is sold for a price of $1.00 per unit. The extended price is $1,000. In addition, item B has a special handling charge of $20; this is a line charge. A setup charge of $30 is also applied as a line charge. The total line-item charge for item B is:
$1,000 + $20 + $30 = $1050
Of this amount, $50 is the additional line charge amount.
Like container charges, you can use an external calculation or validation program with line charges. In the previous example, you could create an external program to find the extended price each time the specific charge is made on a line item, or to validate that the customer can be charged for these services according to predefined contractual agreements.
If this is a requirement in your environment, collect these calculation or validation requirements along with your charge type records.