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Freight cost breakdown for stock valuation

  • 24 April 2023
  • 6 replies
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Dear all,

One of my client receives supplier invoices (related to goods purchasing) with freight cost included.

The freight cost does not appear in the order (because the purchasing team is not able to anticipate this amount).

The accounting team deals with the discrepancy, when entering the invoice in the books, by reallocating the cost in the right account or directly in the purchasing account.

They would like to know if it is possible to breakdown the cost of freight directly on the related invoice on each line/article taking the full amount of each line as the ratio of breakdown.

Their final objective is to impact the cost of freight in the total cost of stock for valuation purpose.

Thanks for your help

 

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Best answer by Adam.Bereda 24 April 2023, 19:54

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6 replies

A
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Hi,
If Purchasing team is not able to anticipate this amount, perhaps they can at least anticipate the existence of the freight cost? To distribute the costs from the invoice automatically, you need PO details - like freight charge (defined for any amount). Then you cam match freight charge changing amount to actual and system will distribute it accordingly.

Manually you can modify the “Additional cost” of each receipt matched where freight is applicable, but it might be time-consuming and tedious effort, 

F
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Hello @Laurent S 

I can propose a work around for you but critical thing is your inventory part setup. The workaround will work only if you have the inventory valuation method weighted average and supplier invoice consideration transaction based.

  1. Go to supplier for purchase part and add charges to the purchase part for those suppliers who add freight. Set charge value to 0. This will automatically add a charge to PO whenever you order the purchase part from the suppliers. Since the part amount is 0 it has no effect on the inventory value
  2. Match your invoice with PO receipt regularly.
  3. If you have any charge amount on the invoice, match the charge amount with 0 value charge line and amend the charge amount based on invoiced value.
  4. This will automatically update inventory cost for the part.

 

If your part setup is standard cost, you can still add charges on the SfPP window and they will be automatically added to PO. You can match the charge with the invoice however it will not affect the invetnory value but posted with posting type M65.

Hope this helps 

https://superp.solutions/
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Hi Gumabs,

I have tried the solution you suggested, however I am not able to change the charge amount on the invoice, I can change the part line, but when trying to change the charge line amount it is not allowed.

This functionality appears to be the same in Cloud and Apps10. Is there a setting somewhere you know of that allows for modification of change amount?

I have tested with charges distributed by line and by amount,  and for various different charge types and none seem to allow the charge amount to be modified at the invoice level.

 

Thanks

Andy

F
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Userlevel 6
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Hi @AndyW 

 

Can you try editing the amount on matching window? Delete the line on this window and go to Match PO Receipts window. Match the line and edit the amount on the window.

 

Thanks

https://superp.solutions/
A
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Thanks @gumabs,

 

That works, and the updated landed costs replicate up through batches used in shop orders and for COGS. Thank you for your help on this.

Andy

F
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Userlevel 6
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I am great that your issue is resolved, although best answer is not mine 😁

 

Cheers

Furkan

https://superp.solutions/

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