vWork is making it easier for transport operators to manage FAF (Fuel Adjustment Factor).
In one of our latest releases (12.27), we have introduced the option for FAF to be managed as a line item at both the job and template levels.
This added flexibility offers vWork customers complete control over which invoice line items FAF can be applied to.
What is FAF?
If you’re a transport operator who has had to deal with fluctuating fuel prices, you probably have some knowledge of Fuel Adjustment Factor (FAF).
FAF is a percentage based surcharge that makes allowance for variations in fuel costs without needing to adjust base transportation rates.
Many operators calculate FAF using a predetermined percentage and then pass on some of the fuel cost to customers, allowing them to account for variations in fuel costs caused by unpredictable factors such as dynamic fuel pricing and geo-political uncertainty. With fuel prices changing quickly in a short period of time, FAF offers operators flexibility and certainty by helping to recover fuel costs.
See What is Fuel Adjustment Factor (FAF)?
Using FAF with invoicing
vWork offers vWork customers complete control over which invoice line items FAF applies to, ensuring the amount is accurately reflected in all invoicing.
FAF can easily be enabled from the finance settings in vWork. Once enabled there is an option to set the FAF rate percentage for transport line items. To use FAF for an individual template, it is as easy as enabling invoicing for the template, adding line items and then selecting the FAF checkbox for each line item that you want the FAF surcharge applied to.
FAF can also be applied to automatically generated line items, for hourly and mileage rates that apply to both users and equipment.
See Add FAF to invoice line items in a job template
What’s coming next?
We are currently working on building support for customer specific FAF, allowing you to offer your VIP customers discounted FAF rates.