Fuel Clauses
Fuel prices can change during the validity of a freight agreement. A fuel clause defines how a fuel-related surcharge is applied alongside the base freight charges, so the agreement can account for these changes without replacing the complete contract.
In FMS, fuel clauses apply this surcharge to cost and revenue calculations. The clause identifies the relevant source and service and determines which charges form the calculation basis. This allows the fuel arrangement to be maintained separately from the underlying freight rate.
The calculation should reflect the agreement with the customer or supplier. Review which charges are included, which pricing date applies and how the surcharge is calculated before using the clause on live documents.
Configuration hints
- Open the FMS Fuel Clause Card and specify the source and FMS service used for the surcharge.
- Use Table Filter (Cost/Revenue Line) to restrict which charges form the basis of the clause.
- Configure the quantity calculation, base amount calculation and agreement pricing date to match the agreed charging method.
- Maintain the applicable surcharge lines. Where the advanced fuel setup is used, review the calculation period, method, percentage and rounding.
- Link the clause to the relevant contract setup and test the resulting cost/revenue calculation.
Check both the surcharge service and the base charges in the result. A fuel clause should not unintentionally apply to unrelated services.