Sprout includes a system called the Inventory Handling Recovery Fee (IHRV) that allows companies to recover additional expenses associated with inbound inventory purchases.

These expenses often occur with international or cross-border shipments and may include costs that are not tied to specific line items on a purchase order.

Examples include:

• customs fees charged after the shipment arrives
• unexpected paperwork or brokerage costs
• handling fees
• other administrative costs related to the shipment

Because these costs are often not known at the time the purchase order is created, they cannot always be included in a Purchase Order Set or distributed through normal freight allocation.

The Inventory Handling Recovery Fee system allows these costs to be applied automatically during inventory receipt.

How the IHRV System Works

The IHRV system applies additional fees based on vendor configuration.

Multiple fee types can be defined, each with its own:

• fee amount
• General Ledger account

These fee types can then be assigned to vendors. Multiple fee types can be applied to the same vendor if needed.

When purchase orders are created for a vendor with IHRV configured, the recovery fees are automatically applied based on the vendor’s configuration.