Transport costs

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Posted on by IA-15041016-0

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Hi all ,

I have goods that are in transit, for which I need to recognize the transportation costs upon receipt of the goods. In D365 F&O, I cannot receive the goods after invoicing, so I thought about using the Landed Cost module. I need to create a voyage, then post the invoice, receive the goods in transit, and then recognize the transportation invoice in the invoice journal by selecting the appropriate voyage. At this stage, I can no longer perform the receipt (from the transit warehouse). The idea is that the transportation costs should be recognized in a suspense account, and then upon the actual receipt of the goods, this suspense account should be reversed to the transportation expense account

What should I do?

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Dynamics 365 Finance

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CA Neeraj Kumar 753 on at

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Transport costs

Hi @IA-15041016-0

Here are the steps:

1) Create the PO

2) Confirm the PO

3) Create a voyage >> Add estimated or known transport cost through Cost type code [screenshot given in my first reply]

4) Post the Invoice >> it will create the Goods-In-transit order and also post the Cost of freight in accrual GL and debit the item cost as defined in the Cost type code setup.

5) Receive goods in transit >> it will move the goods from GIT warehouse to Main Warehouse that was given in PO line.

6) Create an invoice journal to book the transporter’s invoice >> It will nullify the accrual GL and book the actual expenses in Freight GL.

If there are any further clarification required, please let me know.

Regards,

Neeraj Kumar

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IA-15041016-0 138 on at

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Transport costs

Hi ,

Can you please give me the steps of the process? I didn’t quite understand the concept of accrual. At which step does the accrual happen? That’s what I’m trying to figure out.

Here are the steps I have so far:

1) Create the PO

2) Confirm the PO

3) Create a voyage

4) Post the Invoice

5) Receive goods in transit

6) Create an invoice journal to book the transporter’s invoice

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CA Neeraj Kumar 753 on at

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Transport costs

Hi,

Since you are exploring Landed cost module for the solution to book In-transit orders, please set up the "Use Cost type charge accrual account" to yes and define the accrual GL on the Charges code created in landed cost module which you are going to add to the Voyages. At the time of purchase invoicing, it will book the charges to accrual GLs and once you receive the Goods in Transit order, your inventory will move from GIT warehouse to main warehouse.

Once you receive the transporter's invoice, that is to be booked through Vendor invoice journal with reference to the voyage and it will reverse the accrual amount and book the actual expenses.

Regards,

Neeraj Kumar

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