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Hi,
we are using FIFO Inventory Method and we are using many types of freight at the time of sales our products. like warehouse freight, courier charges etc..
we are using Unit Cost and Unit Price fields for profit margin
the system is posting charge item price in G/L Revenue account but not posting in COGS (Cost Account) in the bases of Unit cost entered in sales order lines as shown in the screenshot
anyone can help us on it. if I am missing something in the setup please highlight it.
thanks.
Hi Alfredo -
I found your post while I was trying to solve a similar issue, and I wonder if you could be so kind to help me. Here is the question:
we incur substantial freight costs whenever we ship a sales order, but normally absorb that cost in the sales price. What we are trying to do is twofold:
1- monitor the variance between expected and actual freight cost
2 - assign freight invoices to the sales orders that generated them (and its individual lines), for COGS accuracy.
We have experimented with item charges on Sales Orders, but these charges are added to the amount of the invoice, instead of increasing cost of goods. Is there a way to achieve what we are trying to do?
Grazie mille
Salvatore
Inge is correct.
You cannot simply add a unit cost value to an item charge and expect your COGS to show that value.
On posting a sale, COGS is debited and Inventory is credited. The value of the two accounts must match.
If you want to update your COGS, you need to post an item charge against the purchase of the item. This charge will increase the cost of the item in your inventory. When you sell it, the item will be valued at the purchase cost + Item charge so your two accounts will match.
I think this is simply by design. I assume you have entered the cost on the item charge line manually. Because there is no where you can define the cost of an item charge.
If you want to add more cost to this transaction you have to add an incoming item charge to the items you have sold. When you charge your customer using Item Charge there are simply no COSG for those transactions.
It works the same way as if you invoice using a G/L Account instead of an Item.
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