Accounting For Freight Costs

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We are looking to assign freight costs by product. Due to the volume of freight invoices we receive and incomplete references to POs from the freight companies, it's very time consuming to assign as such and we do not have sufficient resources to assign. We are looking to assign freight to products on a percentage basis instead (Indirect cost % in NAV). What is the best way to manage the double recording of freight through the PL (once through COGS when item is sold as assigned to inventory on a % basis & once when the freight bill is received and paid)?

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Community Member on at

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RE: Accounting For Freight Costs

Thanks. I believe this will work.
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RobertasR 5,002 on at

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RE: Accounting For Freight Costs

Hi GMI66

It's an interesting one, and not the most straightforward to manage. When you post Indirect Cost, the Credit goes to "Overhead Applied Account" account (see General Posting Setup). And when you post the freight it should go into the same account (Debit). At the end of the month/period you might need to move the difference between Indirect Cost applied and actual Invoices into P&L.

Robertas