What are Storage Charges

Storage Charges apply to stock that is in the warehouse and allocated to a warehouse location. Charges will automatically calculate and added to invoices. 

Storage Charges incur for the entire storage period. So, for example, if a pallet is only in the warehouse for 1 hour, it will still be charged for 1 week of storage. In addition, for 'partial' products, storage is never reduced. 

How to create a Storage Charge

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.

When adding new storage charges, you must select both the Product Type and the Storage Charge Method. You can only have one charge per Product Type and Storage Charge Method combination. 

Note, if you wish to create a Per Item Storage Charge, you will need to do so from the Product level, not the Rate Card. See Per Item Storage Charges for steps on how to configure the charges. 

To create a Storage Charge:

  • Navigate to the Rate Cards, More>Rate Cards.
  • Select the applicable Rate Card.
  • Select the Storage Charges tab. 

  • Click the blue +Add Storage Charge button. 

  • Select the Product Type.
  • Select the Storage Charge Method.
  • Select the Rate Type.
  • Enter the rate in the Rate box. 
  • Enter a maximum number of new charges per location; there will be no maximum if left blank. For more information on the maximum number of new charges per location, please click here

Maximum Number of New Charges Per Location 

This field can significantly impact 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:

Example 1:

You have a pallet of Products 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, the location would only be charged Storage for the original pallet, plus one of the new pallets that came in. Some clients would argue that they had already paid for the space; 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.

Example 2:

You have a warehouse location that contains 15 boxes (half a pallet) of the 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? For example, 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 unlimited times.
However, suppose you mostly do carton work. In that case, 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).

Storage Charge Methods

Please note that before selecting a Storage Charging Method, charges are calculated on either the Product Type of the Warehouse Location or the Product Type of the Product. This can be configured within the Rate Card under the Charge Product Type Option. 

Product: charges storage based on the Products Product Type. For example, if you have an ambient product temporarily stored in a chilled location but want to charge still the ambient rate, you would use this setting. 

Warehouse Location: charges storage based on the Warehouse Locations Product Type. For example, you would use this setting if you have an ambient warehouse but charge differently for racked locations vs block-stacking locations; you would use this setting. Otherwise, all products will be charged as ambient regardless of their location. 


Charging MethodConfiguration required to enable the charging methodWhere to add the Storage ChargeDescriptionUse case'Charge Product Type Option' Impact
Per Location (default)NoRate Card 

Storage charges are calculated based on the number of Warehouse Locations that 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 take into account the quantity of product in a location, simply the number of unique locations used. 

Note, to ensure all pallets and products are charged correctly; it is recommended that large quantities of products are split into individual pallets (therefore, into different locations). 

This method is recommended when most of the warehouse is racked, and multiple products are stored within individual locations. 


Yes - will charge by the Product Type option selected. 
Per Location (and bulk location pallets)

Yes


Rate Card

Calculated similarly to Per-location (default), however, the product quantity is taken into account when calculating storage charges. This means large quantities of stock can be loaded into locations without being split into individual pallets. 


Notes:

  • Both Single Pallet and Multiple Pallet locations take quantity into account, meaning if you load 2 Pallets worth of stock into a Single Pallet Location (which isn't possible, but the software allows this to happen), then it'll charge 2 x pallets for that location.
  • The determination of the Number of Pallets comes from the "Oversize Unit".


Single Pallet Locations: 

If you are using this charging method for single pallet locations, CartonCloud will default by the number of pallets in the location (even if this exceeds one). However, if you wish only to allow one charge for each location, you can change this from the Organisation Settings.

The option is called:  "If "Per Location (and bulk location pallets)" Storage Charges are used - Should all stock on Single Pallet Locations be combined into a single charge?"

  • No (Default) - The location can be charged once for each SKU stored. For example, a client storing 4 different products on a Single Pallet Location will be charged for the location 4 times. If stock quantities greater than 1 pallet are loaded onto the location, (ie: a product is configured as 40 boxes per pallet, and 45 boxes are loaded into the location), the location will be charged for the number of pallets stored, ie: 2 pallets.
  • Yes - All stock on a Single Pallet location is combined into a single charge. For example, a client storing 4 different products on a Single Pallet location will only be charged for the location once. If stock quantities greater than 1 pallet are loaded onto the location, (ie: a product is configured as 40 boxes per pallet, and 45 boxes are loaded into the location), the location will still only be charged once.

This method is recommended in warehouses where bulk products are stored and multiple products do not share locations. 


Yes - will charge by the Product Type option selected. 
Volume Based

Yes 

Rate Card

It is calculated based on the total amount of product volume in the warehouse during the given time period.

The number of warehouse locations used does not impact the storage charges. 

This method is most commonly used as it can accurately track the actual storage space being utilised. No impact - when calculating storage charges based on Volume or Weight, the products Product Type is taken into consideration to ensure the correct storage rate is applied. Therefore, the Product Type of the Warehouse Location will be ignored, and only the Product Type of the Product itself will be applied. 
Weight Based

Yes 

Rate Card

It is calculated based on the total amount of product weight in the warehouse during the given time period. 


Per Item

Yes 


Against the Product

This method calculates individual storage rates for products at their base unit of measure.

This method is helpful if you store odd-shaped items (meaning that pallet storage calculation methods are inaccurate) and stock needs to be separated from one another (meaning that volume-based storage calculation methods are incorrect). For example, a fridge may have a separate storage charge of $4.50 per fridge per week, while a microwave may have a storage charge of $1.20 per microwave per week. No impact - always charges based on item fees loaded against the Product. 
Per Pallet (based on quantity)Yes Rate Card 

The total quantity of each Product is aggregated across all warehouse locations, and then the number of pallets are calculated and rounded up to the nearest whole number. Finally, the unit of measure conversion for the pallet quantity is utilised to determine the number of pallets. For example, if 6 cartons = 1 pallet and you have 8 cartons of one product for a storage period, CartonCloud will round up and charge 2 pallets for that storage period. 

This method is most commonly used as it can accurately track the actual storage space being utilised. No impact - the charge will always be based on the Product Type of the Product. 
Per Unit of MeasureYes Rate Card

This storage charge method calculates storage rates for products based on the Unit of Measure specified. This is similar to Per Item storage charging; however, you can have different charges for each different Unit of Measure. Additionally, you can choose to aggregate the stock by location or warehouse and round up or down to the closest Unit of Measure. 

When selecting this charging method, you will need to choose a Unit of Measure Aggregation option:

The below will depend upon what Rate Type is selected (if the Unit of Measure is rounding up or down) 

The below examples assume we have a product in which 6 bottles = 1 case. Therefore, there is no Unit of measure rounding up or down in the below example. 

LocationStorage Quantity

Aggregate by SKU by location

Aggregate all products on an SKU in one location.

Aggregate by SKU across the entire warehouse

Aggregate all products on an SKU across the entire warehouse. 

AA-01-015 bottles 

Combine 7 bottles together (5+2) which converts to 1 Bottle + 1 Case

Charge 1 Case + 1 Bottle

Combine 12 bottles together (5+2+5), which converts to 2 cases.

Charge 2 Cases

AA-01-012 bottles 
AA-01-045 bottles Charge 5 Bottles
Total Charge
6 bottles + 1 case2 cases 

This method is helpful if you wish to charge storage to your customers by only one Unit of Measure (using the roundup or down to Unit of Measure functionality) or if you would like to have different charges for each Unit of Measure. 


Yes - will charge by the Product Type option selected. 

Settings to configure to enable the Storage Charging Method 

Per Location (and bulk location pallets) 

To utilise the Per Location (and bulk location pallets) storage charge method, you must first configure the Product settings. Then, depending on your warehouse and storage set-up, you may need to change the Organisation Settings. 

Product Settings

  • Navigate to the Products page, Warehouse>Products
  • Select the applicable Product. 
  • Select the green Edit button at the top of the screen. 
  • Scroll down to Storage Charge Method and select Per Location (and bulk location pallets).
  • Select the green Save button. 
To change multiple products settings, use the export/import option and update column H (Storage Charge Method) in the exported xsl file. 

And further configuration from the Organisation Settings

If you would like to prevent single pallet warehouse locations from being charged more than once: 

  • Navigate to Organisation Settings, More>Organisation Settings
  • Select the Invoice tab. 
  • Scroll down to the Storage section.
  • Select Yes from the drop-down option under If "Per Location (and bulk location pallets)" Storage Charges are used - Should all stock on Single Pallet Locations be combined into a single charge?

Volume Based

To utilise Volume Based storage charge method, you will first need to configure the Product settings:

  • Navigate to the Products page, Warehouse>Products
  • Select the applicable Product. 
  • Scroll down to Storage Charge Method and select Volume Based.
  • Within the Product Volume (in Cubic Meters) box, enter the volume. 

  • Select the green Save button. 
To change multiple products settings, use the export/import option and update column H (Storage Charge Method) and column K (Volume (cubic meters)) in the exported xsl file. 

Weight Based

To utilised Weight Based storage charge method, you will first need to configure the Product Settings:

  • Navigate to the Products page, Warehouse>Products
  • Select the applicable Product. 
  • Scroll down to Storage Charge Method and select Weight Based.

  • Within the Product Weight (in Kilograms) box, enter the weight. 
To change multiple products settings, use the export/import option and update column H (Storage Charge Method) and column L (Weight (kilograms)) in the exported xsl file. 

Per Item

To utilise the Per Item storage charge method, you will first need to configure the Product Settings:

  • Navigate to the Products page, Warehouse>Products
  • Select the relevant Product.
  • Click the green Edit button at the top of the screen. 
  • Navigate to Storage Charge Method
  • Select Per Item from the drop-down menu. 
  • The Per Item Storage Charge box will appear. Enter the rate.

  • Scroll down and select the green Save button. 
To change multiple products settings, use the export/import option and update column H (Storage Charge Method) and column J (Per Item Storage Charge) in the exported xsl file. 

Per Pallet (based on quantity)

To utilise the Per Pallet (based on quantity) storage charge method, you must first set up the Product Unit of Measure for pallet for each applicable Product using the charging method. 

Click here for instructions on how to set up the Product Unit of Measure. 

Per Unit of Measure 

To utilise the Per Unit of Measure storage charge method, you will first need to configure the:

Product Settings:

  • Navigate to the Products page, Warehouse>Products
  • Select the relevant Product.
  • Click the green Edit button at the top of the screen. 
  • Navigate to Storage Charge Method
  • Select Per Unit of Measure from the drop-down menu. 
  • You will also need to select the Unit of Measure Aggregation option. This will override the setting you configure on the Rate Card. 
    • As per rate card default setting: this will apply the aggregation set up against the Rate Card. 
    • Per SKU, Per Location (and Bulk Location Pallets): Aggregate all products on an SKU in one location.
    • Per SKU, Across the Entire Warehouse: Aggregate all products on an SKU across the entire warehouse. 

  • Scroll down and select the green Save button. 

If you are updating this in bulk via Product export/import you will need to update the file with either of the below:

Unit Of Measure Aggregation:

Unit Of Measure Aggregation OptionProduct Export Value
As per rate card default settingDefault
Per SKU, Per Location (and Bulk Location Pallets)Location
Per SKU, Across the Entire WarehouseWarehouse

Rate Card Settings:

To set a default aggregation option for all Products on the Rate Card you can do so from the Rate Card settings.

  • Navigate to the relevant Rate Card, More>Rate Cards
  • Select the blue Edit button at the bottom of the screen.
  • Scroll down to the Default Unit Of Measure Storage Aggregation option. 
  • Select the relevant aggregation option. 

Storage Charge Rate Type

Flat Rate

A single fixed fee

Sliding Scale 

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 after that. (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.

Sliding Scale Rates allow you to apply varying rates depending on the quantity of a particular item (for simplicity, we'll refer to Pallets throughout the rest of the guide; however, this could be anything - cartons, skids, drums).

It's imperative to understand the subtle but potentially enormous pricing differences between Non-Cumulative and Cumulative pricing.

Non-Cumulative

Non-Cumulative means that a single price will be applied to all pallets

For example, you may charge weekly storage per location in the following way:

PalletsPrice
1-2$5.00 / per pallet
3-5$4.50 / per pallet
6-10$4.00 / per pallet
11+$3.80 / per pallet

Meaning that 6 pallets would simply cost: 6 x $4.00 = $24.00.

This can be implemented in CartonCloud using a Non-Cumulative Sliding Scale:

Cumulative

Cumulative means that various prices will be applied to the pallets within the scale.

For example, you may charge weekly storage per location in the following way:

PalletsPrice
1-2$5.00 / per pallet
3-5$4.50 / per pallet for every pallet after the 2nd
6-10$4.00 / per pallet for every pallet after the 5th
11+$3.80 / per pallet for every pallet after the 10th

Meaning that 6 pallets would cost: (2 x $5.00) + (3 x $4.50) + (1 x $4.00) = $27.50.

This can be implemented in CartonCloud using a Cumulative Sliding Scale:

How sliding scale is applied for each storage charging method:

Storage Charge MethodHow sliding scale is applied
Per Location 

Per Product Type

Per Pallet (based on qty)Per Product Type
Volume and WeightPer Product
Per Unit of MeasureIt depends on the aggregation setting on the Product/Customer Charge

Per Unit of Measure Charging Method specific Rate Types

Round up to next (larger) Unit of Measure 

When using this Rate Type, you need to ensure there is a charge in place for the Product Unit of Measure you are rounding up to.

The below examples assume we have a product in which 6 bottles = 1 case.

It is assumed we have a charge for Bottles configured to Round up to next (larger) Unit of Measure (cases)

LocationStorage Quantity

Aggregate by SKU by location

Aggregate all products on an SKU in one location.

Aggregate by SKU across the entire warehouse

Aggregate all products on an SKU across the entire warehouse. 

AA-01-015 bottles 

Combine 7 bottles together (5+2) which converts to 1 Bottle + 1 Case

Round up 1 bottle + 1 case to 2 cases 

Charge 2 cases 

Combine 12 bottles together (5+2+5), which converts to 2 cases.

Charge 2 Cases

AA-01-012 bottles 
AA-01-045 bottles 

Round up 5 bottles to 1 case 

Charge 1 case 

Total Charge
3 cases 2 cases 

Round down to previous (smaller) Unit of Measure 

When using this Rate Type, you need to ensure there is a charge in place for the Product Unit of Measure you are rounding down to. 

The below examples assume we have a product in which 6 bottles = 1 case. 

It is assumed we have a charge for Cases configured to Round down to previous (smaller) Unit of Measure (bottles)

LocationStorage Quantity

Aggregate by SKU by location

Aggregate all products on an SKU in one location.

Aggregate by SKU across the entire warehouse

Aggregate all products on an SKU across the entire warehouse. 

AA-01-015 bottles 

Combine 7 bottles together (5+2) which converts to 1 Bottle + 1 Case

Round down 1 bottle + 1 case to 7 bottles

Charge 7 bottles 

Combine 12 bottles together (5+2+5), which converts to 2 cases.

Round down 2 cases to 12 bottles

Charge 12 bottles 

AA-01-012 bottles 
AA-01-045 bottles 

Charge 5 Bottles

Total Charge
12 bottles 12 bottles

How Storage Charges are calculated utilising Storage Periods

CartonCloud will combine existing storage and new storage to calculate the Invoice Periods Storage Charges. 

Existing storage: is the stock already on hand at the start of the storage period (the date allocated is before the storage period start date). 

New storage: all the inbound stock that falls within the storage period (date allocated is within the storage period range). 

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 before 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.

How modifying in and out dates impacts Storage Charges

CartonCloud allows you to make retrospective changes to the Purchase Order Allocated Dates and Sale Order Packed / Dispatched Dates.

Doing so will affect storage charges for Storage Periods that fall within the dates changed. Typically, this will only affect Storage Periods which have not yet been invoiced. However, Storage Periods which have already been invoiced can be manually "Recalculated" for the updated charges to be calculated.

Example:

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, and 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 that has been affected (the previous week); however, this Storage Period has already been invoiced. Therefore, 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 that has arrived on Friday.