
Hi,
We are using GP2018r2 and would like to start tracking the freight-in as well the pallet charges from our vendors. To aid in the receiving end, so the person receiving knows what was quoted originally, we would like to add these two charges to the Purchase Order when it's created. We use "shipment" for receiving so during the receiving, those fields are inactive. How do we receive these charges in so it matches the invoice from the vendor?
An alternate to this would be - if we use the Landed Cost feature, would add those costs to the Purchase Order during creation (so the person receiving knows what is quoted) but, once we're about to receive this in, do we delete those costs and have receiving adjust the landed cost to match? Or, just leave them and use the Landed Cost in it's place to receive it in?
Thanks in advance for any help or suggestions you might have.
Scott
Hi Scott,
I see people successfully use landed cost to accomplish exactly what you’re describing. You can set up landed costs for any additional costs that may be associated with the purchase (freight, pallet costs, duties, misc., etc.). Whether landed cost functionality is the answer for your business is something I’d recommend you test in a Test Company to see if it gives you the results you’re looking for (enter it on your PO, and watch how it flows/posts throughout the life of the purchase).
I can tell you that I don’t commonly see users entering landed cost on a PO, back it out, and then replace it with freight during the life of the purchase. With that being said, if it gives you the results you’re looking for – that’s the way to go. All in all, it comes down to which option works best for your business based on your end goal (there’s really not a right or wrong way to record your freight as long as the end result is what you’re looking for).
I’ve attached a Purchase Order Processing pdf here. Chapter 19 goes into detail about Landed Costs.
Hopefully others in the community will be able to give you some insight about what works best for them in similar scenarios.
Thanks for using Dynamics Communities,
Andrea Melroe | Sr. Technical Advisor | Microsoft Dynamics GP