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6 Replies Latest reply: Dec 5, 2011 12:04 AM by apex RSS

adding freight to receipt costs

608027 Newbie
Currently Being Moderated
Is it possible to capture freight costs in Base Apps Purchasing? I need to enter freight costs during material receipt, and the costs have to be added to the material cost. The cost can only be specified during receipt of the item.

  • 1. Re: adding freight to receipt costs
    523865 Newbie
    Currently Being Moderated
    No its not possible to add extra cost. I beleive that your looking for solution for landed cost and which is not direct fit in base purchasing module. Based on your inventory costing method, there are workarounds available.
  • 2. Re: adding freight to receipt costs
    608027 Newbie
    Currently Being Moderated
    Absolutely Narendra. I am looking to add landed costs in R12 Receipts without any customizations. However, I came across a field 'Freight' in the Receipt header, and felt that it might help my cause on incorporating landed costs. Can you let me know the significance of the field 'Freight'? Moreover, can you suggest a workaround, if the Costing method is Average??

    Tx a lot!!

    Edited by: user605024 on Feb 17, 2009 1:09 PM
  • 3. Re: adding freight to receipt costs
    691316 Newbie
    Currently Being Moderated
    I'm agree with 1 answer. There's no standard functionality for Landed cost.
    In my country it's a wide-spread practice to use landed cost. Usually as walk-around we offer to customers to use NORM.

    I mean that You can setup Cost Managment so that after delivery aditional costs (% or abs value) are added to inventory value. This is called Overhead and can be setup on Item-InvOrg level. Also note that it's not retrospective. So You can change this overhead rate before receipt. This works well if one or 2 person work with receipts and if You have medium or less receipts number.

    You can ask me for details.

    Best regards,
  • 4. Re: adding freight to receipt costs
    628428 Expert
    Currently Being Moderated
    Since you are already on R12 please refer to Note 781061.1. Please note that this is referring to 12.1.1 (after 12.1 which I believe is yet to be released). This functionality is available out of the box in that release. Since then if you want real time solution (cost has to change for the receipt and accounting needs to be correct) for the purchase receipt transaction, you have to use Costing hooks. You have to use transaction costing hooks as well as accounting hooks to offset receiving account value.

  • 5. Re: adding freight to receipt costs
    709757 Newbie
    Currently Being Moderated
    Please tell me what are the workarounds available to capture freight cost in 11i (


  • 6. Re: Link the POS
    apex Newbie
    Currently Being Moderated

    Our customer like to enable landed cost added to that they want to have link to freight & other charges POs to the source po.

    For Eg: Create new PO for the Items. (Parent POs)
    Create separate POs (child POs) for Freight charge & Courier Charge to different suppliers.
    Is the possibility to link the POs. (Parent POS <-> child Pos)
    Your help will be appreciated.



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