The Declared Value field is meant to be used to represent the total value of the goods being shipped, as declared by the shipper. Many carriers define the declared value of a package to represent the maximum liability for the package in the event of loss or damage. This is generally taken to be the total amount of the goods or items being shipped with the order when item based pricing is included into the total cost of the order.
Declared value generally does not include charges for distance pricing, zone prices, or any accessorial charges applied to the order or to the items themselves. However, these are just general guidelines and declared value can represent any amount deemed necessary.
Entering an amount into the Declared Value field does not add to or include the amount in the Total Cost of the order. In this respect, some OnTime users choose simply to enter a declared value to represent an amount within the order for record keeping purposes.
The only way that entering a Declared Value can affect pricing is by using Declared Value within a price modifier as:
- A value for the price modifier to watch in the Watch Value drop down list
- A multiplier in the Multiply by drop down list
Declared value is most often used as the base amount in price modifiers that are designed to apply insurance charges.