Surcharges

A surcharge is a cost from a company that holds your raw materials.
For example, you hold some of your hops in a location called “The Hops Storage Place”. When you receive inventory from them, you will typically get charged one or more surcharges.

BrewKeeper allows you to set surcharge titles per off-facility location so when you receive, you can input an amount next to the surcharge title.

Create surcharges for a Location

Warehouse > Settings

1. Scroll to Raw Materials Locations
2. Find External, which represents locations not associated with your facilities
3. Click edit next to the location you want to add a surcharge to
4. List the titles of your surcharges, separated by commas and press Save
   • Surcharge titles can contain spaces
   • “Additional” is a reserved word, and cannot be used as a surcharge title

Create a Transfer and apply surcharges

Surcharges are only applied on Transfer Orders that are coming from an External facility’s Location.

Production > Purchasing Orders

1. Create a Transfer Order

1. Click on the Transfer Orders tab
2. Click on the Transfer button
3. In the Location From select, choose a location in the External group
   External locations are locations not in your Facilities
4. Select a Location To, input some quantities for what you want to transfer and click Create Order

2. Apply Surcharges

Each line item is populated with location surcharges you’ve set up. Next to each surcharge title, enter the amount. The total of all surcharges is shown at the bottom of the transfer order.

There is also an option to add an Additional surcharge per item by selecting the “Additional” checkbox at the bottom of the order. Checking this will add a surcharge per item called “Additional”.

Contribution Costs

Contribution costs are stored per unit. BrewKeeper divides the surcharge by the quantity, and applies that to the contribution cost.

For example,

Item:

• Hops x100 kg
• Surcharge: $200

$2 will be added to the contribution cost ($200 / x100).

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Tax
Contribution costs are only calculated and displayed to the user once Deliveries are Finalised, which is the point at which you enter all of the specific pricing details, including tax type, tax amount, tax rate.

If you transfer a raw material that has pricing on the lot details, BrewKeeper assumes the surcharges are tax inclusive, and it uses the same tax rate as the item the surcharge is on.

With the same surcharge as an example,the following costs will be applied to the Lot:

• surcharge cost: $2
• surcharge tax type: tax inclusive
• surcharge tax rate: 10% (taken from the delivery item)
• surcharge tax: $0.182
  calculated: $2 - ($2 / (1 + 10%))
  tax included formula: cost - (cost / (1 + tax rate))

Common Questions

Can I create a surcharge on any location?

Surcharges can only be set on locations that are external / not associated with a Facility.

How is surcharge pricing factored into the contribution costs?

Contribution costs are per unit, and surcharges are per item, so BrewKeeper divides the surcharge by the quantity delivered and adds that to the contribution cost.

Day 1 Assumptions

On the transfer, you can only put in a surcharge total. There is no tax input, so for now it is assumed that the surcharge is TAX INCLUSIVE.
You can edit the Lot pricing manually and adjust the tax details in the Raw Materials page, by clicking on a raw material and editing the lot.

Can I amend my surcharge costs on a lot?

Yes, if you open the Raw Materials page, open a product and edit the lot, you can update the surcharge costs.