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Define a new item in inventory called Freight and make it an expense item.
Now add it to the Req/ PO at appropriate value.
which attribute to enable and which to disable to make it an expense item and not an inventory item
If you have an Expense item template, use that.
If not, make sure that the item is purchasable, non-inventory, non-costed, non-asset item.
And it should be value based , not quantity based
plus PO charge account on PO distributions has to be an expense account and not an asset account as it is for inventory items
I thought of following, see if its correct
Open a new line type which is value based and use that for frieght charges.It take Quantity and amount as 1 as input, doesnt ask for item
You must be aware of this
Right and you can enter the expense a/c on req/po. You can also enter the expense a/c on the item master itself.
Hope this answers your question
Yes - you can also create a value based line if you don't want to enter an item.
By creating an item for freight will not update the cost of each item.So that the value of the inventory items are less than the real value.
Is there a way to update the cost of each individual item???
which costing methid u using? avg or standard?
The freight would go to an expense account and not into your material account of your ORG in which you are transacting
When you close the inventory period at the end of the month and run create accounting, all expenses are taken into consideration when posted to GL.
If we see it your way that inventory value should increase than the weighted average will get disturbed if freight is charged to the material account, if you are using avg costing method
there are some cases where a supplier gives an item cost that is all in..means freight and other expenses are added and then he gives the price per unit.in these cases, fregiht is beared by the supplier.
while in other cases, the buyer has to pay the freight and cartage charges!
This all i am telling you from my point and business process that i am currently invloved in.
I dont know whats happening at your place..
but i hope this helps you too as this all info is general and applies to most