Negative Margin & Excessive Margin
Jobs that have zero or negative margin and/or high margin above 50% require a profit and loss reason code upon marking the job CMP. CargoWise will not allow a user to mark a job CMP without a profit and loss reason code if the job is at zero or negative margin upon marking CMP. There are some exceptions in the US where a job may be positive at the time of marking CMP, but when corporate revenue fee hits later, it may leave a job in negative margin, thus will show on the OCD requiring operators to input a profit and loss reason code.
To Fix: Enter the reason code from the billing tab of the job using the appropriate reason code definitions listed below.
Code | Description | Usage |
BRI | Buy Rate Issue | Procurement could not match the required rate to enable profit |
COS | Cost Only | This is to be used for files where we are only capturing costs and no Revenue is expected . |
FXR | Foreign Exchange Rate Loss | When there is a loss on the file caused by FX Rate mis match (Mostly Intercompany ) |
HMF | High Margin File | Confirmation this is a High Margin File over 50% profit margin |
OPS | Operational Error | Service Failure due to operational errors, |
QUT | Rate Quote Error | Incorrect Quotation made to client |
REV | Revenue Only | Above 50% profit e.g., Charge for in-house customs clearance |
SSR | Strategic Sell Rate | Commercial decision has been taken to support a client for Network benefit or lane density, internal management decision on loss approval. This could also be based on Product direction to invest in certain accounts with approval. |
UTL | Utilization | BSA, LCL Groupage box, that we have committed to but utilization of the same if below Breakeven or Allocation penalty, booking cancellation fees incurred |
Job Department Error
CargoWise has programmed auto defaults of job departments with logic based on an operators log in country, where a job is originating and destinating, and transport mode. Operators should never manually update the job departments that default on the billing screen of a job in CargoWise. If a manual job department is changed, the OCD will recognize this and identify what the proper job department code should be, requiring operators to update it appropriately. As of October 1, 2023 there currently is a bug in the OCD on job department errors causing a unnecessarily high amount of errors and we are fixing that. Once its fixed we will advise the field and remove this message. The field currently does not need to fix these until the bug is fixed.
To Fix: Enter the correct job department code from the billing tab Dept. Box, then update any existing charge code lines to the correct job department
Financial Closure
CargoWise is set to auto close jobs that are in CMP status to JFC status five months from the first AR (Accounts Receivable/Sales Invoice) date. It will then move the job from JFC status to CLS status in one more month (so 6 months from the first AR date). This OCD metric will show all jobs in JFC status that are one month/30 days away from moving to CLS status. Only certain operators at the department manager level have access to change jobs status from JFC back to WHL, etc.
To Fix: If there are no open wips and/or accruals on the job then no action is needed. Review any open wips and/or accruals that are still pending on the job. Open wips need to be removed OR billed to the client. Open accruals need to be posted, IF the supplier/vendor cost invoice has not yet been sent to post the accrual and is still pending, at this point operators need to move the job from JFC status to WHL (work on hold) status. This will allow more time to ensure the invoice is received from the supplier/vendor and to post those costs. Any open wips and/or accruals that are NOT actioned in JFC status will be removed from the job once the system moves the job to CLS status. If these are not actioned, valid, and removed from the job this will cause inaccurate profit and negative out of period transactions in the future and therefore MUST be actioned.
Open WIPs and/or Accruals on the JFC jobs (and any other jobs) can be easily viewed from the OCD dashboard here:
