👨⚖️ How it works ?
Applying a fuel indexation/surcharge on transport services is a major issue for carriers. Find out in this article what fuel indexation is, how to calculate it and apply it.
The Dashdoc TMS allows you to calculate and automatically apply the fuel surcharge to all your transport services.
You are not yet using the Dashdoc TMS and you would like to know more about our solution?
👨⚖️ How it works ?
The share of fuel in the overall cost of transport is very important.
As this cost fluctuates greatly, you can add a fuel indexation to your transport price.
You must of course agree the terms of this indexation with your client beforehand.
🧮 How to calculate the fuel indexation?
Make sure you have defined the above-mentioned reference parameters with your client.
Calculate your indexation / fuel surcharge by taking into account the following formula:
Explanation of the formula :
Initial month index = Index for the month in which the commercial/contractual relationship took place.
Invoicing month index = Index on the 1st of the billing month corresponding to the invoice.
Gas weighting for the initial month = Share of diesel in the transport cost, this diesel weighting represents the percentage of diesel in the cost. It can be established manually
🧑💻 Dashdoc automatically calculates and applies the fuel surcharge on all the desired transports:
Applying and updating fuel indices and surcharges are time consuming actions!
No more Excel files or manual updates, Dashdoc takes over to help you apply the fuel surcharge faster and further!
Several ways to apply the fuel surcharge in Dashdoc :
Manual entry in each transport (or transport templates)
Manual application to all shipments on an invoice
🚀 Automatic application in transports - set up fuel indices and surcharges per customer in your Dashdoc TMS
You don't use the TMS Dashdoc yet but you would like to know more about our solution ?
Let's see how it works:
1. Manual entry in each transport
When entering the fare for a transport, it is possible to include the fuel surcharge. You can save a transport template that contains this surcharge, in order to save time.
Step 1: Calculate your fuel surcharge (see explanation above)
Step 2: Add a fuel surcharge
Step 3: Check the lines on which to apply the fuel surcharge, via the tick: apply the fuel surcharge to the billing lines corresponding to the transport service, remove the application to the services that would fall under waiting or handling times.
2. Manual application to all shipments on an invoice
You can choose to enter the fuel surcharge at the time of invoicing.
In the case of invoices for multiple shipments, this will save you time by entering the fuel surcharge for all shipments on the invoice only once.
Step 1: Calculate your fuel surcharge (see explanation above)
Step 2: Add a fuel surcharge
Step 3: Indicate the percentage of fuel surcharge you wish to apply to your invoice.
The percentage indicated will be applied to all shipments on this invoice (by adding a "Fuel Surcharge" billing line on the price of each shipment or by updating the percentage already entered in the shipment).
3. 🚀 Automatic application in transports
Dashdoc accompanies you faster and further in the application of the fuel surcharge!
From your Dashdoc TMS :
Set up your fuel surcharges and update your indices when necessary (e.g. at the end of the month)
Dashdoc will do the rest for you:
🧮 It will automatically calculate the new value of the fuel surcharge set up on the basis of the new index or value entered by you.
It will automatically apply this surcharge to all the transports concerned (according to the parameters entered: date of application, associated customer,...)
⏲️ Saves time and ensures better control of your profitability!💰
Find out how to set up and update your fuel surcharges in Dashdoc
To get started, go to "Tariffs" > "My Fuel Surcharges".
Step 1: create a fuel surcharge
The information needed is:
a name, to allow easy identification of the surcharge at a later stage (e.g. pallet customer surcharge)
a date type to be used: when you want to update values (e.g. new surcharge value for 2023 negotiated with the customer), the transports will be updated in bulk according to this parameter (in our example, if you select the actual loading date, then transports with actual loading date in 2022 will not be updated, but transports with actual loading date in 2023 will)
an index (to be created if necessary by adding the link to the source, e.g. the CNR site)
an initial date of application of this surcharge
an initial price
the part of the transport
Step 2 : select the customers to whom this surcharge applies, and if necessary set the appropriate accounting product code
Your surcharge is now updated and will be applied automatically to selected clients!
Step 3: update all your surcharges by updating your indices in 2 clicks
If you update your surcharges regularly (e.g. monthly), you can do so very easily by clicking on "Update indices".
Simply enter the date of implementation and the new index price.
Your surcharges will be automatically updated. 🎉
You don't use the TMS Dashdoc yet but you would like to know more about our solution ?