2 Replies Latest reply on Aug 3, 2011 6:54 AM by 872630

    Advance freight payment during recipt

    872630
      Hi !

      I have a very urgent problem in Purchasing. I need to pay the part of the freight to the transporter as advance or full amount of the freight for a recipt of material. Later on when the transporter will send the final bill i wll make the rest of the payment after adjusting the advance earlier paid.

      Let me describe the scenario better with an example:

      Truck A shifted material of 10 ton to my plant and frieght for the shipment would be around 1000. But i paid 500 as advance to the transporter.
      Truck B shifted material of 20 ton to my plant and frieght for the shipment would be around 2000. But i paid 500 as advance to the transporter.

      Then i received the material into my inventory (Total 30 Ton in two recipts).

      Later on Transporter raised a bill of 3000 to me. I paid rest 2000 after adjusting the earlier advance paid (Rs 1000) to the transporter.

      How i can make this transaction in Purchasing.


      Regards
        • 1. Re: Advance freight payment during recipt
          Sandeep Gandhi, Consultant
          When you make the advance payment to the supplier, you should enter a prepayment type of invoice.
          Later when the supplier sends you the actual invoice, the AP person should apply the prepayment to the actual invoice and then pay the remaining amount.

          Hope this helps,
          Sandeep Gandhi
          • 2. Re: Advance freight payment during recipt
            872630
            Hi Sandeep !

            Here the problem is differnet.

            Say, Truck shifted the material of 10 TON @ cost of Rs. 500.
            Advance freight paid 100 rupees to the transporter T. Now i made the recipt and used the material. Now the landed cost of the material is 500 + 100. So it is Rs. 600.

            Again 500 is the bill from supplier (Supplier S) and 100 advance for freight is given to the transporter (Transporter T) . Bothe are different creditors.

            Later Transporter T raised the bill for the full frieght that is 200. Now against the prepayment of freight advance a amount of rs 100 i adjusted with the full freight amount that is 200 and paid rest 100 to the transporter T.

            Now the landed cost of the material should be 700 for 10 TON.

            My question is that, after recipt in inventory and using the material how i can update the final landed cost ?

            Regards