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Apply dropship freight cost to sales order for profitability tracking

  • 13 November 2024
  • 1 reply
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Hello,

We need the freight cost that is defined on a dropship PO to be linked back to the sales order. We need the freight cost to be tracked and passed from the vendor back to the customer in order to track profitability for the freight line on the sales order. If we do not have the ability to track freight cost, then all we are getting on the sales order is the freight price which throws off profitability. 

 

Tracking dropship freight cost to a sales order invoice.

 

Here is a dropship purchase order. I added line 002, Freight Charge, onto the PO at a $50 cost. This is the cost the vendor is charging us for freight. This line is linked to the sales order. We would like this cost reflected on the sales order that is linked to the dropship purchase order for profitability purposes.

 

 

 

Here is the sales order that is linked to the dropship purchase order. As you can see the “Freight Charge” has a price of $100. To explain further we are charging the customer $100 for freight when the freight cost was $50 (The vendor charges us $50 for freight cost). This should reflect a gross profit of $50. The sales order is coming over at $0 unit cost because the system appears to be looking at the standard cost of the nonstock “FREIGHT” item. 

Is there a way to link the cost directly to the dropship purchase order line? In this case, the unit cost on the PO is $50 so the unit cost on the SO would be $50? 

Does anyone have an alternative method to recording the freight cost like having the ability to update the cost on the SO Invoice? Freight cost if usually captured on the shipment, since we technically don’t have a shipment (dropship) how can we record the freight cost on the invoice? 

 

 

 

Thanks! 

Best answer by etrojan28

I was able to link the Freight nonstock item to the PO and it did writeback my cost. Case closed. 

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  • Author
  • Jr Varsity III
  • 42 replies
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  • November 14, 2024

I was able to link the Freight nonstock item to the PO and it did writeback my cost. Case closed. 


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