Combining Landed Cost on PO Receipt with Subcontract PIT Withholding?

Question

Hi everyone,I need some advice on a tricky situation:	We want to add delivery costs as Landed Cost on a PO Receipt so it goes into our inventory value.			But our delivery workers are individual contractors. We manage them using Subcontracts to automatically calculate their Personal Income Tax (PIT).	Landed Costs usually link to regular AP Bills, not Subcontracts.Has anyone found a smart workaround (maybe using clearing accounts or special setups) to get delivery costs into inventory while still handling Subcontract PIT taxes?I know this is not a standard feature, but I would love to hear your ideas!Thanks a lot!

Rakshanda · Answer

Hi ​@nomii,Recommended Workaround: Clearing Account MethodFlow:1. Create a regular AP Bill for the delivery cost, posting to a "Delivery Cost Clearing" liability/expense account. Use this bill as the Landed Cost document on your PO Receipt.2. Process the Subcontract for the same contractor as normal (with PIT withholding calculated automatically).3. Journal Entry or offset — periodically reconcile the clearing account against the subcontract expense account so they net to zero.Result:- Inventory absorbs the delivery cost (via Landed Cost on the receipt)- PIT is still calculated correctly (via the Subcontract)- The clearing account nets to zero after reconciliationConsiderations- Vendor setup: You may need the contractor set up as two vendor records (one for the bill, one for the subcontract) or use the same vendor but track by document type.- Timing: If the bill and subcontract are in the same period, the clearing account washes out cleanly.- Automation: You could use a recurring journal or an automation schedule to offset the clearing account monthly.- Audit trail: Document the process clearly — auditors will want to see why there's both a bill and a subcontract for the same service.Hope above helps!!

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