Storage Charges can be automatically calculated and applied to Invoices. Storage charges are applied to stock which is in the warehouse and allocated to a Warehouse Location.
There are a variety of different methods which can be used for calculating storage, such as "Per Location" (the default storage mechanism in which storage is charged based on the number of pallet spaces used), but other methods such as "Volume", "Weight" or even "Per-Item" charging can be enabled. Multiple mechanisms can also be implemented simultaneously across different products, allowing you to charge some products on a Per-Location basis, while others are charged based on their Volume.
Storage Charges are always incurred for the full storage period for items. For example, if a pallet is only in the warehouse for 5 minutes it'll still be charged 1 weeks storage. Storage is never reduced for 'partial' periods.
Table Of Contents:
Storage Periods are defined by the number of days you want to charge storage. Normally this is 7 days, meaning that all storage charges apply for storing the product for one week. This number can be modified within the Customer Charges (see: Customer Charges Fields & Descriptions). Normally storage periods will align with your Invoicing Period meaning that the storage period starts and ends at the same time as your invoices. However, this can be modified if required.
Storage Periods contain a start and end date (referring to the first, and last dates of storage charges they contain). These are created automatically within CartonCloud the moment products are loaded into Warehouse Locations.
Storage Periods are then added to Invoices and are used to calculate the Storage Charges.
Different ways of calculating Storage Charges
CartonCloud features 5 different ways in which Storage Charges can be calculated. The different methods used can be selected on a Per-Product basis. For example, you may have one product, "Blackcurrent Juice", which you want to charge based on Volume, while another product from the same customer, "Display Stands", that you want to charge on a Per Item basis.
You can also Edit Products in bulk either by Exporting and Importing, or by using Edit Products In Bulk
Storage charges are calculated based on the number of Warehouse Locations which are used. In the case where multiple products are stored on a single pallet the system will just charge the location once. Bulk locations may be used to store multiple 'pallets' in a single location and therefore charge multiple pallets of storage. Per-Location charges do not care about the amount of product in any location, simply the number of unique locations used (Note: by default all new storage being goods received during the storage week are charged - this can be turned off on the charge details tab 'Double Charge Storage'). This means that large quantities of product must be split up into individual "Pallets" so the storage charges are correct. This method is recommended when most of the warehouse is racked, and multiple products are stored within individual locations.
Warehouse Location Group Names
|"Per Location (and bulk location pallets)"|
Similar to Per-Location charging however the product quantity is taken into account when calculating storage charges.
This provides one advantage in that it allows large quantities of stock to be loaded into locations without being split into individual pallets. This solution is recommended in warehouses where bulk products are stored and locations are not shared by multiple products.
|"Volume Based"||Volume based charging calculates the total amount of product in the warehouse during the given period, takes the volume of those products, and then works out the total volume of the space used, and applies the charge for that. Number of warehouse locations used have absolutely no effect over volume based storage charges.|
|"Weight Based"||Like Volume based charging only charges are calculated based on the total weight of the product.|
|"Per Item"||Individual storage rates can be loaded against individual products. For example a fridge may have a storage charge per week of $4.50, while a microwave may have a storage charge of $1.20. This method is useful if odd shaped items are being stored (meaning pallet storage calculation methods don't work), and stocks need to be separated from one another (meaning that volume based charges are inaccurate). In most cases either pallet-based or volume-based storage charges are preferred as they more accurately track the actual storage space used. Per Item storage charges are prone to creating non-linear storage rates.|
|"Per Pallet (based on qty)"|
The total quantity of each products is aggregated across all warehouse locations. Then the number of pallets (or whatever its oversize units) are calculated, rounded up to a whole number. The charges are based on this quantity.
NOTE: You must have a Pallet Unit of Measure configured for each Product that is using this as a Storage Method charge.
Per Location - New Storage vs Existing Storage
The following diagram shows two storage periods, Storage Period 1 and Storage Period 2.
Assuming we're calculating storage charges on Storage Period 2, the Purchase Order Products which were allocated to locations prior to Storage Period 2 are charged as Existing Storage (as they were already in the warehouse when the Storage Period began), and the Purchase Order Products allocated during Storage Period 2 are charged as New Storage.
Volume and Weight Storage Charges
Volume and Weight Storage Charges are calculated by simply taking the total amount of product in the Warehouse during a particular time, and then calculating the total weight / volume and charging accordingly. There is no separation between Existing and New Storage Charges when charging storage in this way.
Each product can have a Volume and Weight field, which can be modified within the Product itself, or updated in Bulk using Export / Import tools.
When calculating storage charges based on Volume or Weight, the products "Product Type" is taken into account to ensure the correct storage rate is applied. For example, Frozen storage may have a higher rate per cubic meter than Chilled storage.
Unlike Location-Based Storage Charges, Volume and Weight Based Storage Charges ignore the Product Type of the Warehouse Location and just look at the Product Type of the Product itself. For more information on charging storage rates based on the Warehouse Location's Product Type see: Customer Charges Fields & Descriptions
Per Item Storage Charges
Per item storage charges take the total quantity of each product stored in the warehouse within a given time period and then multiply that by the items "Per Item Storage Charge". Like Volume and Weight charges, Per Item charges can be modified on a per-product basis, and exported / imported in bulk.
You will modify these charges from within the Product set up, either by Adding a new product or by Editing an existing product. Once the Storage Charge method of "Per Item" has been selected, you will see a new field available, "Per Item Storage Charge", this is where you enter the rate that you wish to charge the item out at.
Adding Storage Charges
Storage Charges can be added from within Customer Charges.
Storage charges can be calculated differently for each different Product Type, allowing you to charge differently for Chilled vs Frozen storage, or Dangerous Goods vs Non-Dangerous Goods (etc).
When adding New Storage Charges you must select both the Product Type and the Storage Charge Method that the charge will apply to.
You can only have 1 charge per Product Type and Storage Charge Method combination.
From here you can select between Flat Rate and Sliding Scale storage charges.
Sliding Scale Storage Charges
Sliding scale rates allow you to apply varying storage charges depending on the volume stored within your warehouse.
For example, you may charge the first 10 pallets at $5.00 each, and then $4.50 for each thereafter. (Cumulative Sliding Scale)
Or, you may charge $50 if the client stores 10 pallets, but then drop the rate to just $4.50 per pallet for all after (Non-Cumulative Sliding Scale).
Selecting Sliding Scale allows you to configure such rates in bands.
For more information on how Non-Cumulative and Cumulative charging works, see out guide here: Sliding Scale Rates
Max Number of New Charges Per Location
This field can have a significant impact on your total storage charges as it affects the number of times a single location can be charged within one storage period.
To understand how it works consider the following examples:
You have a pallet of product in a location, and it is all shipped out, then a new (different) pallet comes in and goes into the same location. This then repeats 5 times throughout the week.
If you have the Max Number of New Charges Per Location set to 1, then the location would only be charged Storage for the original pallet, plus one of the new pallets that came in, as some clients would argue that they had already paid for the space, so why are they being charged again?
If, however, you had the Max Number of New Charges Per Location left empty (no maximum), then the location would be charged to the customer 6 times, once for the pallet that was already there at the start of the week and 5 more times for all the new pallets coming in and out.
You have a warehouse location which contains 15 boxes (half a pallet) of product.
During the week, 10 of those boxes leave the location, and another 30 boxes come in, almost completely refilling the warehouse location.
In this case the location never went empty, so saying that a new pallet came in is technically incorrect, however chances are you still want to charge storage for 2 pallets during that week (the old stock, and the new pallet treated). Again, assume this happened 5 times throughout the week (stocks going out, then more coming into the same location, but without it ever going empty).
How many times should the location be charged? Should it be charged again every time another box comes in? Or should there be some limit on the number of times it can be charged?
How you charge in this situation depends on how your business operates, however the Max Number of New Charges Per Location field may be used to limit customers being charged excessively for the same location.
Our recommendation is: If you do mostly pallet work, leave the Max Number of New Charges Per Location option empty so it charges the locations an unlimited number of times.
However, if you mostly do carton work, we suggest implementing a Max Number of New Charges Per Location of 1 so you'll (at most), charge a customer twice for a single location (once for the stock that was already there when the week began, and one more for new stock which has arrived).
How modifying in/out dates affects storage charges
Doing so will affect storage charges for Storage Periods that fall within the dates changed. Normally, this will only affect Storage Periods which have not yet been invoiced. However, Storage Periods which have already been invoiced can be manually "Recalculated" in order for the updated charges to be calculated.
We have weekly Storage Periods which run Monday → Sunday.
Invoicing is done on a Monday Morning for the previous week.
On Friday, a Purchase Order is received and verified, however for some reason CartonCloud is not updated at the time. Come Monday, the Purchase Order is verified within CartonCloud, however to capture the Storage Charges from the previous week the Allocated Date is updated to the previous Friday.
In this situation, there is now a Storage Period which has been affected (the previous week), however this Storage Period has already been invoiced. In order for it to be updated to reflect the new charges, it needs to be recalculated.
Once this has been done, the Storage Period will reflect the new charges based on the stock having arrived on the Friday.