Hi,
this seems to be a very common scenario (freight collect / third-party billing), and the right approach depends on what the client actually wants: just expense the cost, or capitalize it into inventory (landed cost). In this case the vendor shouldn't invoice freight at all — UPS bills the client directly, so this is a separate AP flow from the PO cycle.
Option A — Freight as period expense (most common)
Post the UPS invoice as a non-PO vendor invoice (Pending vendor invoices or Invoice journal)
Line goes straight to a Freight/Shipping expense account, with financial dimensions as needed
If invoice arrives late, use an accrual journal for the right period
Simple, but freight cost won't be reflected in item cost/margin.
Option B — Freight capitalized into inventory cost (landed cost), manual since no Transportation module
Set up UPS as an AP vendor
Create a dedicated Charges code (AP > Setup > Charges) with "Include in inventory cost" enabled and posting to a clearing account
Add a Miscellaneous charge line on the relevant PO(s), vendor = UPS, estimated amount
On product receipt/invoice, the charge capitalizes into item cost
When the actual (often consolidated) UPS invoice arrives, post it and manually reconcile against the clearing account — variance goes to a cost adjustment
Bottom line: if the client just needs freight visible in the P&L by cost center, go with Option A. If they need accurate landed cost per item/PO and volumes justify the manual reconciliation effort, Option B works — otherwise it may be worth evaluating Transportation module just for charge allocation, even without rating/load planning.
As an alternative you can use the Landed cost module, but I am not an expert on it (others in the forum can surely help) and it requires a lot of setup but it is worth for you to take a look
Hope I got the scenario right, otherwise please add information so that me or others can help. And let me know if you need additional information on the setup required to handle the scenario
