FAF is the abbreviation used for "Fuel Adjustment Factor", a percentage-based surcharge added to transportation line items in an invoice. It is used to make allowance for variations in fuel costs without needing to adjust base transportation rates.
FAF is sometimes called a Variable Fuel Factor (VFF), a Fuel Surcharge, a Fuel Levy, or a Diesel Surcharge. We call it FAF in vWork.
FAF is an optional feature in vWork that, once added to your account, is easily enabled and disabled as required in the Finance Settings. When enabled, FAF can be added to selected line items in job templates and invoices.
To find out more about FAF, or have it added to your vWork account please contact firstname.lastname@example.org. We’ll get in touch to talk through your requirements.
If you want to enable FAF in your Finance Settings and start using it please read the article: How to set up and apply FAF to invoice line items.
Who can adjust the FAF surcharge?
The FAF surcharge is enabled and set in the Finance Settings. Only users with Administrator user permissions can access the Finance Settings to adjust the FAF surcharge. This means dispatchers and mobile app users can see the FAF rate on job invoices and apply it to line items but they can’t adjust the FAF percentage rate.
Note: Once FAF is enabled, future adjustments to the FAF rate will only change the rate on open and future jobs. The FAF rate remains unchanged for canceled and completed jobs.
How does FAF show on the Invoicing tab?
FAF is very flexible, giving you complete control over which invoice line items it applies to. FAF can be added to line items at the template level and at an individual job level. If FAF is added at the template level, you can choose to remove it for individual line items for a specific job later. Alternatively, you can add FAF to line items in an invoice when these are not included in the template.
When FAF is enabled in your account, the Invoicing tab gains an extra column called FAF.
- The FAF column displays a checkbox next to all line items. When a checkmark is added to a checkbox next to a line item this shows that FAF is applied to that line item.
FAF line item
FAF shows as a line item on the invoice when a line item has had a checkmark added to the FAF checkbox.
- If no line items have FAF applied to them you won’t see the FAF line item.
- The FAF line item can’t be edited. It is completed automatically and adjusts as invoice line items have the FAF surcharge added and removed from them.
- The FAF line item uses the Code, “FAF” and the Description, “Fuel Adjustment Factor”.
- The FAF Actual Quantity is the sum of every Line Total that has FAF enabled.
- As FAF is applied as a percentage to line item totals, the Unit Price shows in the FAF line item as the percentage converted to a currency value. In the example below, FAF is 12% which makes the unit price $0.12.
- The FAF line item Line Total shows the total FAF that has been applied to all line items that have a checkmark in their corresponding FAF checkboxes. The FAF surcharge is applied to this total to calculate FAF in a currency value. In the example below 12% of $192 = $23.04 where $192 is the total of all line items that have FAF applied to them.
- As with all other line items, the FAF line item can be moved within the invoice so that you can group it with items that have the FAF surcharge applied to them.