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106Hi everyone,
We have a freight requirement in Business Central where the client wants to use freight on both the sales and purchase side.
Business requirement:
Freight charged to customer = Income
Freight paid to UPS/carrier = Freight-Out / COGS
Actual freight cost must reduce sales order/ticket profitability
Current expected P&L:
Income
30800 - Shipping and Delivery Income
COGS / Cost
31250 - Freight-In
31300 - Freight-Out
The client currently handles this in a QuickBooks-style process. Customer-billed freight appears as shipping income, while freight bills from UPS/LTL/vendors appear as Freight-In or Freight-Out under COGS/cost. They also want actual freight cost to be tied back to the related sales order/ticket so profitability and commission are accurate.
We are considering this setup:
Sales side:
Item Charge = S-FREIGHT
Gen. Prod. Posting Group = SHIPPING
Sales Account = Shipping and Delivery Income
Purchase side:
Item Charge = F-OUT
Gen. Prod. Posting Group = FREIGHT OUT
PURCHASE ACCOUNT = FREIGHT OUT
Scenario:
Sales Invoice:
S-FREIGHT = $100
Assigned to Posted Sales Shipment
Purchase Invoice:
Vendor = UPS
F-OUT = $70
Assigned to Posted Sales Shipment
Expected to post to Freight-Out / COGS
Questions:
- If both sales and purchase item charges are used for the same shipment/order, how can we verify after posting which shipment was charged, how to just look at invoice and know about which shipment/Invoice/Receipt the item charge was assigned to?
- What is the posted/functional difference between assigning a sales item charge to
- Applies-to Doc. Type = Invoice
- Applies-to Doc. Type = Shipment
- What is the recommended design to post UPS freight to Freight-Out and capture Sales Shipment No./Sales Order No. through dimension/custom field/custom linkage?
- How should this reflect in Chart of Accounts/P&L so that sales freight goes to Shipping Income and purchase freight goes to Freight-Out COGS?
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