In the Acquisitions Small Group, we have been discussing added charges on invoices. These are not the charges for materials themselves, but rather the other types of charges that may appear on an invoice. Some examples include:
We’re interested in feedback on how your library handles these additional charges.
Do you pay these charges from the same or a different fund from the materials? Does it vary depending on the type of additional charge?
Do you pay these charges as a single line, at the beginning/end of the invoice, or do you pro rate the charges to the individual material line items? Does it vary depending on the type of additional charge or the type of material?
If you prorate the charges, do you prorate based on 1) the number of line items, 2) number of units, or 3) based on the line item’s percentage of the overall invoice cost. For example: There is an invoice with 2 line items: 1 for 2 copies of a set costing $1000 total ($500 apiece) and 1 for a book costing $50. There is also a $20 shipping fee that you want to prorate among the line items. Do you divide the $20 by 2 (# line items), and charge $10 to each line item? Divide the $20 by 3 (# units) and charge $13.33 to the first line item and $6.67 to the second line item? Or do you prorate based on the line item’s overall cost? If that’s the case, then the first line item (costing $1000) would include $19.05 in shipping charges and the second (costing $50) would include $0.95 in shipping charges.
And if you prorate the charges, does the proration method vary for different types of charges, e.g. divide the shipping charges by the number of line items, but divide the tax based on the line item’s percentage of the overall invoice cost?
Do you expect your materials vendor to send the charges in the invoice the way that you want them prorated, or do you expect your ILS to break out the proration from single shipping and/or tax line on the invoice?
Thank you for any advice and examples you can provide.