We have to prepay freight and duties before the items are delivered to us. How do I now assign the freight and to the items that I am receiving? If we already posted the receiving without the freight/duty assignment - is there a way to correct the landed cost for this item?
*This post is locked for comments
Hi Ernie,
there is no standard way of doing this. As you said, if the invoice for freight and duty is posted before goods are received, then you have nothing to create Item Charge for.
What I usually recommend to my clients is follow this routine:
1. When posting prepaid duty / freight, it has to go to the Accruals Account. That is where you'd normally expect it to be.
2. When goods are received, create the invoice for the 'dummy' vendor with Item Charge and assign the value to the received goods.
Now, the trick here is to have the 'dummy' vendor with the specific Vendor Posting Group, that would put the Credit into the Accruals Amount. This will clear the Accruals Account from step No.1, and debit the received stock with additional cost.
You can also set up Vendor with specific payment method to clear the balance automatically (when Payment Method has Balancing Account specified).
It usually does the job, at least from the finance perspective.
Hope that helps.
Robertas
Thanks - but the problem I have is that I already Prepaid the Freight and duty. Now I'm receiving the merchandise. How do I now assign the freight and duty charges without adding a charge item on the PO as this would overstate the PO amount. I can do a credit memo to the freight and duty invoice. Do the PO receiving for the merchandise and then re-enter the freight & duty invoice as a charge item and assign it to the PO receipt lines. This is a round about way but I was hoping there would be a more direct way when dealing with Prepaid freight and Duty invoice.
The best is to use allocation - item charges.
Please refer here: msdn.microsoft.com/.../hh168616(v=nav.90).aspx
Your actual cost may vary from exp. cost. So, while invoicing, you have an option to apply the Item charge (if you are using Freight as the "Charge Item" ).
You may refer the below link for "Charge (Item)".
https://msdn.microsoft.com/en-us/library/hh168616(v=nav.90).aspx
Stay up to date on forum activity by subscribing. You can also customize your in-app and email Notification settings across all subscriptions.
#1
André Arnaud de Cal...
291,269
Super User 2024 Season 2
#2
Martin Dráb
230,198
Most Valuable Professional
#3
nmaenpaa
101,156
Share
Report
All responses (
Answers (