3PL Contract
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The 3PL Contract module in XoroERP is a cornerstone for managing agreements between businesses and third-party logistics (3PL) providers. It supports the creation and management of multiple contracts tailored to unique requirements. This article provides an elaborate explanation of the fields in this module, categorized into relevant sections for better understanding.
The contract header contains the foundational information about the agreement. These fields define the essential details of the 3PL provider, contract validity, and payment specifics.
The 3PL Account field allows you to select the third-party logistics provider from a dropdown menu. This account acts as the identifier for the contract and connects to data stored in the 3PL Account Module. Each account includes comprehensive details about the logistics provider, including their services, billing preferences, and operational history. Ensure all 3PL accounts are pre-configured to enable smooth contract creation.
The Effective Date field specifies when the contract becomes active. This date plays a crucial role in triggering calculations and billing processes. For example, storage billing might occur on predefined cycles, such as the 1st, 15th, or the last day of the month, ensuring consistency in accounting.
The Renewal Date field indicates when the contract is due for renewal. Setting this date helps businesses anticipate renegotiation, extensions, or terminations, ensuring uninterrupted service.
This field holds the primary contact information for the contract. It typically includes the name, phone number, and email of the person or department responsible for managing the agreement. Accurate contact information ensures effective communication in case of any discrepancies or updates.
The Terms field defines the contractual obligations and expectations. It can include clauses related to service-level agreements, penalties for delays, or billing conditions. Selecting predefined terms from a dropdown ensures consistency across contracts.
This field specifies the entity to which payments should be made. It can include the name of the logistics provider or a specific account managed by the provider. Accurate input ensures smooth financial transactions and avoids payment delays.
The Currency field establishes the monetary unit for transactions. This is particularly important for international agreements where exchange rates and regional regulations may apply.
This field captures the physical mailing address of the logistics provider or the relevant office for correspondence. This address may be used for sending invoices, contracts, or legal notifications.
The Storage Fields section focuses on storage-related aspects of the agreement, outlining how charges will be calculated based on the area or units used.
This dropdown field determines whether storage charges are calculated based on the allocated area or the number of units stored. The selection impacts billing structure:
Area-Based: Suitable for contracts where storage is charged per square foot of space.
Unit-Based: Ideal for contracts where charges depend on the number of stored items.
The Allocated Area field defines the total space reserved for the client, measured in square feet. This allocation helps calculate base charges and sets the threshold for overage billing.
This field specifies the cost of storage per square foot. Accurate input ensures fair billing for the space utilized.
This field tracks the actual space used during the billing cycle. Businesses can monitor utilization trends and optimize storage efficiency.
When the area used exceeds the allocated space, this field defines the penalty or extra charge applied. It encourages clients to stay within their allocated limits or renegotiate storage needs.
This section handles charges associated with item-specific services like handling, shipping, and receiving. These charges ensure that logistics providers are compensated for itemized activities.
Clicking this button opens a pop-up to configure item-specific charges. These charges are linked to specific item categories and operational activities like purchase orders (POs) or returns.
The Type field allows users to specify the nature of the service, such as:
Handling (Shipping): Charges for packaging and dispatching goods.
Return: Costs incurred during the processing of returned items.
Receiving: Fees for handling incoming shipments.
The Conditions section refines the applicability of charges based on specific scenarios.
Field: Select parameters like order type or wave template.
Operator: Choose logical operators like Equals, Contains, or Greater Than.
Value: Specify the value that triggers the charge.
These fields determine the amount charged and the unit of measurement (e.g., cartons or units).
Type
Defines the nature of the service charge. Options include: Handling (Shipping), Return, and Receiving, allowing charges to be categorized based on specific activities.
Description
A brief explanation of the item service charge, providing clarity on its purpose or the activity it is associated with.
Code
A unique identifier for the service charge, ensuring traceability within the system.
UOM (Unit of Measure)
Specifies the unit of measurement used for the charge calculation, such as Carton, Unit, or other relevant metrics.
Charge
Defines the monetary value of the service charge, either as a flat rate or calculated based on predefined conditions.
G/L Category
Links the charge to a General Ledger account, such as Freight, Supplies, or Handling, ensuring accurate financial reporting and accounting.
Tax Code
Specifies the applicable tax policy for the charge. Options include GST & PST, GST Only, HST, or other regional tax standards, ensuring compliance with tax regulations.
Miscellaneous charges cover additional costs not directly tied to storage or item-specific activities. These charges can be applied to shipping, receiving, or other operational workflows.
This field categorizes charges based on the type of activity:
Shipping: Costs related to dispatching goods.
Receiving: Fees for incoming shipments.
Work Order: Charges associated with internal operations.
Return: Fees for handling returned items.
The Charge Rate field defines the method of calculation:
Flat Rate: A fixed fee.
Percentage of Document: Calculated as a percentage of the order value.
Dollar Value of Document: Directly proportional to the total document value.
The Charge Against field refines the basis of calculation, allowing selections like the number of units, cartons, or lines.
Column Name
Description
Document Type
Identifies the type of document or activity the charge is associated with, such as Shipping, Receiving, Work Order, or Return.
Charge Code
A unique identifier for the charge, auto-populated to ensure traceability within financial and operational records.
Description
Brief explanation of the charge's purpose, typically auto-populated based on the selected type or configuration.
Type
Defines the nature of the charge: Predefined Type (pre-configured charges), Custom Type (user-defined charges), or Minimum (baseline charges).
UOM (Unit of Measure)
Specifies the unit of measurement used to calculate the charge, such as Count (each unit), Size (cm, ft), Volume (liters, gallons), or Weight (kg).
Charge Type
Determines the method of calculation: Flat Rate (fixed), Percentage of Document (proportional to order value), or Dollar Value of Document.
Charge Against
Refines the basis for applying charges when percentage or value-based methods are used, such as Units, Cartons, Lines, Orders, or Value of Order.
Always Apply
Toggle that enforces the charge to be applied automatically in all scenarios, regardless of exceptions.
Charge Value
Defines the monetary amount of the charge, either fixed or variable based on the selected Charge Type and Charge Against criteria.
G/L Category
Links the charge to a financial account, such as Freight, Supplies, Handle In, or Work Orders, ensuring accurate financial tracking.
Tax Code
Specifies the applicable tax policy, such as GST & PST, HST, or regional standards like Standard (BC) or Standard (MB).
Re-Calculate On Shipping
Toggle that determines whether the charge is recalculated when shipment details change, ensuring charges reflect updated conditions.
The Minimums section ensures baseline charges for key processes, safeguarding against losses during low-volume transactions.
This is the minimum fee applied per receipt, regardless of the number of items received.
A fixed minimum charge for each order shipped, ensuring profitability on low-volume shipments.
The minimum fee for processing returned goods, covering labor and administrative costs.
This field sets the minimum invoice value, ensuring each transaction meets financial thresholds.
This option allows you to create a new contract by duplicating an existing one, saving time and effort for similar agreements.
This action removes the selected contract from the system.
Clicking this button finalizes all changes and saves the contract in the system.
By leveraging the 3PL Contract module in XoroERP, businesses can streamline their logistics operations, ensure accurate billing, and maintain clear communication with 3PL providers. This module offers flexibility and precision, adapting to diverse business needs.
