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Freight Charges included on Vendor PO

  • 1 December 2021
  • 11 replies
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Hello Everyone,

What is the best practice for receiving inventory at landed cost when the freight is charged as a separate line item by the goods vendor?

The distinction from using a Landed Cost document is that the freight is being charged by the goods vendor on the same invoice as the goods receipt, not from a separate freight vendor.  The following idea has been submitted, but wanted to check if anyone had a good process for this while under review.

Thank you!

Luke

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Best answer by Ellie 11 December 2021, 21:31

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The workaround we use is to add a FREIGHT non-stock item on the PO, which will get billed to the vendor on the same bill as the stock items.
Then in addition, add landed cost document for the freight amount on the purchase receipt. This document gets release but the “create bill” flag is not checked, so it disperses the landed cost to the items, but does not create a duplicate charge to the vendor.


This is not ideal and we would benefit greatly from Acumatica making these very common landed cost scenario more simple, but it does the job.

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You can try using a negative document discount in a purchase order (posted to some dedicated account-sibaccount) and then reclassify this expense into inventory adjustments through a business event.

It might require doing a small customization (adding custom field to the inventory adjustment). 
let me know if further assistance/clarification here needed 

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Hi @Ellie ,

I am the ERP Product Manager- Product Success here at Acumatica.  We are currently conducting interviews with community members who have shown an interest in Landed Cost improvements.

We would like to hear your thoughts on the subject.  We’re doing research, gathering requirements with the objective of simplifying Landed Costs, especially for this scenario where the merchandise vendor and freight vendor are one and the same.

Can I please email you an invitation to participate in a session with us?

If any other commenters or likers on this thread are also interested, please comment on this thread to show your interest as well.

 

Thanks - Dana

 

I would love to. My email is o.lieves@rdpfs.com

Userlevel 3
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Hi @Ellie ,

I am the ERP Product Manager- Product Success here at Acumatica.  We are currently conducting interviews with community members who have shown an interest in Landed Cost improvements.

We would like to hear your thoughts on the subject.  We’re doing research, gathering requirements with the objective of simplifying Landed Costs, especially for this scenario where the merchandise vendor and freight vendor are one and the same.

Can I please email you an invitation to participate in a session with us?

If any other commenters or likers on this thread are also interested, please comment on this thread to show your interest as well.

 

Thanks - Dana

 

Dana,

That would be amazing. Looking forward to that Email.

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@Ellie - Thank you for the idea!

Do you create a “dummy” vendor for the Landed Cost document, or do you flag your goods vendor as a Landed Cost vendor?

Thanks again,

Luke

We flag the goods vendors as landed cost. This helps for tracking and analysis purposes and keeps things clean.

@Ellie - Thank you for the idea!

Do you create a “dummy” vendor for the Landed Cost document, or do you flag your goods vendor as a Landed Cost vendor?

Thanks again,

Luke

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@Ellie 

Can you post the accounting transactions for this? What account is credited when the landed cost is released? Is it the same one that the non-stock item posts to?

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@Ellie

Can you post the accounting transactions for this? What account is credited when the landed cost is released? Is it the same one that the non-stock item posts to?

The account defined on the Landed cost code gets credited on the journal transaction from the landed

cost INVENTORY document.

Is the below what you wanted to see?

 

Landed cost settings

 

LC INV Journal transaction

 

 

 

We are implementing BFC as our WMS with Acumatica as the ERP.
In your example, Are you “receiving” the freight line? I am guessing that receiving the freight non-stock item line would increase your expense account.

If we process a landed cost document to increase the cost of the stock items received, how are you handling the expense cost? are you doing a manual JE to clear it?

If the goods vendor is set at a landed cost vendor, you can create a landed cost document with that vendor and add the landed cost to the same bill with the goods.

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