The pallet storage count and billing process is a structured procedure that occurs monthly to accurately assess and bill customers for their storage usage.
This article outlines the key steps involved in this process, including data input, categorization, and calculation of storage charges.
1. Pallet Storage Count Timing
The pallet storage count is conducted on the first business day of each month. This count is used to calculate storage charges for the corresponding month.
2. Data Input and Categorization
The information from the pallet storage count is inputted into the Pallet Utilization Report, organized by account number and region. The data is split into three categories:
Finished Goods
Return Merchandise Authorization (RMA)
Components
3. Billing Calculation
The count obtained on the first business day of the month is utilized to invoice customers for their storage usage. For instance, the count from March 1 is used to calculate storage charges for the March Fulfillment Bill.
4. GAP Pallet Count
"GAP storage" refers to a billing practice used by our warehouse management. It addresses the need to account for pallets that enter or leave the storage facility between the regular monthly pallet counts.
Charges are levied based on the number of pallets received during these interim periods to accurately reflect the storage space utilized. This approach ensures that customers are billed appropriately for the storage space that is utilized, accounting for fluctuations in inventory levels between scheduled pallet storage assessments.
The GAP pallet count is defined as follows:
It represents the number of pallets received within the billing month.
Pallet counts are prorated based on their receipt date:
Week 1: Counted at full 100% value
Week 2: Counted at 75% value
Week 3: Counted at 50% value
Week 4: Counted at 25% value
Receiving 25+ boxes of a single line item counts as one pallet.
5. Slow Moving Products
Please take a look at the article available here on how slow-moving pallets are calculated and billed.
6. Final Pallet Storage Charges
The final pallet storage charges on the Fulfillment Billing Summary are determined as follows:
Standard Charges: Include finished goods, components, and GAP pallet receipts.
RMA Charges: Cover return materials and undeliverable products.
Slow Moving Charges: Applicable to products stored with minimal movement as per contract terms.
This structured approach ensures accurate assessment and billing of pallet storage. It considers various categories and prorated calculations for incoming pallets and slow-moving products.