Charge Codes
Charge codes are predefined billing identifiers used in logistics ERP systems to assign, categorize, and track service-related charges. Each code represents a specific cost or fee, such as freight, fuel surcharge, customs handling, or warehousing. By applying standardized charge codes to jobs, companies can ensure accurate billing, simplify financial reporting, and maintain consistency across departments. These codes are the foundation of automated billing workflows and profitability tracking in logistics environments.
How Charge Codes Work in Logistics?
When a service is added to a job or shipment, the appropriate charge code is selected within the ERP. These codes are linked to pricing rules, customer-specific contracts, and revenue accounts. As services are performed, such as pickup, storage, or final delivery, the system automatically applies the matching charge codes. These are then reflected in job costing, invoicing, and accounting records. Charge codes can also trigger automated invoice generation and approval workflows based on their configuration.
Integration of Charge Codes into Logistics Workflows
Strategic Purpose
Charge codes provide a standardized method of labeling and applying fees, ensuring accuracy in customer billing and internal financial analysis.
ERP Configuration and Setup
Administrators define charge code libraries within the ERP, linking each code to service types, cost accounts, tax rules, and customer pricing contracts.
Operational Touchpoints
Charge codes are used during shipment creation, service entry, vendor billing, and invoicing, making them central to both operations and finance.
Data and Documentation Flow
Once applied, charge codes populate customer invoices, vendor settlements, job profit/loss reports, and tax summaries, creating a unified billing trail.
Impact on Cost and Time
Proper use of charge codes reduces billing errors, speeds up approval processes, and helps avoid revenue leakage from unbilled or misbilled services.
Conclusion
Charge codes are a critical part of logistics ERP configuration, connecting operations to accurate billing and financial control. By automating the application and tracking of service costs, they help logistics providers simplify job costing, speed up invoicing, and maintain full visibility into profitability. With the right charge code strategy in place, companies can deliver better service while maintaining financial discipline across all transactions.