Best way to roll up charges into the item cost?

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What is the best way to roll up a freight charge or duty charge to the item cost on the Purchase Order to come up with a true landed cost on items which are weighted avg?

Should these charges be added to each line of the PO or should there be an adjustment to the invoice once it posted?

Any pointers would be greatly appreciated. Thanks!

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Sagar Suman 6,707 Super User 2026 Season 1 on at

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Hi Jack,

if you want to add the freight charge on. purchase order to the landed cost of the item then you need to do the following.

1> Create a charge code of freight in which the posting fast tab should have ITEM posting type in the debit field. ( This will add the cost to the item)

2>Select this freight charge code on the header of the PO with the amount. eg 500€

3> allocate the header charges to the lines of the PO with following setup.

Charges allocation field > QUANTITY

Allocate charges to line. > All lines

scenario

freight charge 500€

PO with two lines

line Item qty. price amount

1. A. 500 10. 5000

2. B. 500. 10. 5000

after charges allocation to both lines with above setup 500€ freight charge will be equally divided to both.

item cost of A and B will be 750

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Guy Terry 28,944 Moderator on at

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Hi Jack,

You can use a Charge, which you can add to the purchase order or to the invoice.

Even if you add it to the order, it may not be included in the cost of the item until you post the invoice. This blog post explains more.

blogs.msdn.microsoft.com/.../post-misc-charges-at-time-of-product-receipt

You can retrospectively add a charge to an invoice, using a Charge adjustment. If you do this, the cost of the item will increase immediately, but the cost of issues linked to that receipt will not be updated until you next run inventory close (or possibly inventory recalculation).

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Community Member on at

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Thank you both. This is exactly what I was look for!

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Community Member on at

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I'm running into an issue. Here is what I'm experiencing:

1. I have everything properly setup, created PO with one line.

2. Added a duty charge and allocated it.

3. I go into PO Line > Financials > Distribute Amounts, I get a red X by the Charge which I assume is indicating an error.

4. I successfully receive the item.

5. Issue Product Receipt

6. I get an error during the posting of the invoice that says: An error occurred. Ha!

Clearly the error begins at line level during the distribution of amounts, I'm just not sure how and why this is happening. It does it on every single Charge I created and configured as per the post Gary suggested.

Any ideas gentlemen?

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