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We are using our own freight trucks to pick up inventory from manufacturers. We want to include the freight cost in the cost of those items that were purchased from the manufacturer but picked up by our trucks. We do not need an AP bill for this transaction since its not third party. Is there a way to use the landed cost process without creating an AP bill?

Just FYI, we come up the with the freight cost by using a home grown freight cost estimator tool. Takes the overhead cost, repairs, maintenance, fuel price and mileage to come up with the freight cost. We would like to use the landed cost screen to enter that information and distribute the freight cost to the items on the PO without ACU forcing an AP bill. Is anyone needing this functionality? 

 

Hello,

I think you can use Landed Cost without AP Bills. Please test this theory in your test environment and check with your CPA to make sure the GL posting I’m suggesting is correct.

The main concern will be choosing an account to use in place of Landed Cost Accrual.

Normal Landed Cost processes will

  1. Debit Inventory asset account (or COGS if the items are already sold) and credit the Landed Cost Accrual liability account upon entry of the Landed Cost amount.
  1. Debit Landed Cost Accrual account and credit Accounts Payable upon entry of the related AP Bill.

If you are never going to enter a bill to any vendor… step 2 won’t happen in your scenario, and the balance posted in step 1 will remain in the account that is credited in step 1.  

You’ll want to use an account that is not a liability for the credit in step 1, in place of Landed Cost Accrual.  I’m guessing an appropriate account to use in place of Landed Cost Accrual might be Vehicle expense.

 

The resulting entry will offset your vehicle expenses like gas/insurance/repairs with a credit while debiting COGS when the delivered items are sold. 

Will this work?

Laura

 

 


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