Purchases

Charge Master

The Charge Master defines reusable charge types that can be applied to Purchase Orders, Vendor Invoices, and Vendor Claims. Charges represent additional costs incurred when acquiring goods — such as freight, brokerage fees, customs duty, franchise fees, or handling surcharges. While the Charge Master screen itself is compact, the feature it enables is powerful: it is the mechanism Quasar uses to calculate true landed cost, ensuring that the full cost of getting goods to your shelf is reflected in your inventory valuation and margin reporting. Access from Purchasing › Charge Master. Security screen: ChargeMaster.

Internal vs. External Charges

When a charge is added to a Purchase Order or Vendor Invoice, it is classified as either Internal or External. This distinction is the key to understanding landed cost in Quasar:

Type	Effect on Cost	Where It Appears
Internal Charge	Absorbed into each item’s inventory cost. Increases the item’s landed cost, which flows through to cost of goods sold (COGS) and margin calculations.	Allocated to each line item’s int_charges field. Included in the invoice total.
External Charge	Posted separately — not added to item cost. Recorded as a distinct expense or accrual against the charge’s GL account.	Allocated to each line item’s ext_charges field. Included in the invoice total but kept separate from inventory valuation.

The Internal/External flag is set on each charge line when it is added to a transaction, not on the charge definition itself. This means the same charge (e.g., “Freight”) can be applied as internal on one invoice and external on another, depending on the business context.

Landed Cost Example: You receive $10,000 of merchandise with $500 freight (internal) and a $200 franchise fee (external). The $500 freight is allocated proportionally across every line item, increasing each item’s on-hand cost. Your inventory is now valued at $10,500 — the true landed cost. The $200 franchise fee is posted to its own GL account as a separate expense, keeping your cost-of-goods accurate while still capturing the full invoice payable.

Fields

Name

Descriptive name for the charge (up to 20 characters). Examples: “Freight”, “Customs Duty”, “Brokerage”, “Franchise Fee”, “Handling”.

GL Account

The General Ledger account where the charge amount is posted. For internal charges this is typically a freight or duty accrual account; for external charges this is the expense account that will carry the cost.

Tax

The tax code applied to this charge. Some charges (like freight) may attract GST/HST/VAT; others (like duty) are typically tax-exempt. Select the appropriate tax to ensure correct tax calculation on the charge amount.

Amount includes tax?

When checked, the charge amount entered on the transaction is treated as tax-inclusive. The system back-calculates the base amount and tax portion. When unchecked, tax is added on top of the entered amount.

Calculation Method

The calculation method determines how the charge amount is computed when the charge is applied to a transaction. Only one method can be active per charge definition:

Manual

No automatic calculation. The user enters the charge amount directly on each Purchase Order or Vendor Invoice. Use this for charges that vary per shipment (e.g., a one-time customs brokerage fee).

Cost

Automatically calculates the charge as a percentage of the total item cost on the transaction. For example, a 5% franchise fee on a $10,000 invoice produces a $500 charge. Ideal for charges that scale proportionally with order value.

Percent

The percentage rate used when the Cost calculation method is selected. Enter the rate as a percentage (e.g., 5 for 5%).

Weight

Automatically calculates the charge as a dollar amount per unit of weight. For example, $0.25/kg freight on 200 kg of goods produces a $50.00 charge. Ideal for shipping costs where freight is quoted by weight.

Dollar

The dollar amount per weight unit used when the Weight calculation method is selected.

When using Cost or Weight calculation, the system pre-fills the charge amount on the transaction. The user can still override the calculated amount if needed (e.g., a negotiated freight discount on a particular shipment).

Allocation Method

The allocation method controls how the total charge amount is distributed across individual line items on the transaction. This is critical for internal charges, because the allocated portion directly affects each item’s landed cost:

Method	Description
None	The charge is not allocated to individual line items. It is posted as a lump sum to the charge’s GL account. Typically used with external charges where per-item cost impact is not needed.
Cost	The charge is allocated proportionally based on each line item’s extended cost relative to the total item cost. Higher-value items absorb a larger share of the charge. This is the most common method for freight and duty.
Weight	The charge is allocated proportionally based on each line item’s total weight relative to the total shipment weight. Heavier items absorb a larger share. Ideal for weight-based freight or handling fees.

Allocation Example (Cost method): A $300 freight charge on an invoice with two line items — Item A at $2,000 (66.7%) and Item B at $1,000 (33.3%). Item A absorbs $200 of the freight and Item B absorbs $100. If the charge is internal, Item A’s landed cost increases by $200 and Item B’s by $100. Any rounding remainder is applied to the last line item.

Where Charges Are Applied

Once defined here, charges are added to transactions through the Charges tab on the following screens:

Screen	Usage
Purchase Order	Pre-define expected charges (freight, duty) on the order. When the order is received into a Vendor Invoice, the charges carry forward automatically.
Vendor Invoice	Apply charges to the actual invoice. Internal charges flow into item landed cost; external charges are posted to their GL accounts. The charge amount, tax, and allocation are calculated based on the charge definition.
Order Template	Pre-configure standard charges on frequently-used order templates. When Auto Order generates a purchase order from the template, all charges are carried forward.
Vendor Claim	Apply charges to vendor returns and claims, mirroring the charge structure from the original invoice.

Common Charge Definitions

Charge Name	Calc Method	Alloc Method	Typical Usage
Freight	Manual or Weight	Cost or Weight	Shipping costs. Usually internal to capture true landed cost.
Customs Duty	Cost (% of value)	Cost	Import duties. Always internal — duty is part of landed cost.
Brokerage	Manual	Cost	Customs broker fees. Can be internal or external depending on your accounting policy.
Franchise Fee	Cost (% of value)	Cost	Ongoing franchise royalties on purchases. Typically external — posted as a separate expense, not absorbed into product cost.
Handling	Manual	None	Warehouse handling surcharges. Can be either internal or external.

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