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Evo-ERP and DBA Classic >> Manufacturing >> frt on purchase order
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Message started by Laura on 05/23/03 at 13:16:39

Title: frt on purchase order
Post by Laura on 05/23/03 at 13:16:39

How do most folks handle frt on a PO?

Right now I am adding an additional inventory item (frt) and making a notation such as Vendor will ship this USHolland.

I don't think you should have to do a PO for the desired product and a different PO for the frt? Our rec'd PO's don't become an invoice (we use vouchers).

The frt might be added to the vendors invoice......BUT what if the vendor shipped frt collect ?
WHAT IF WE get a frt bill from USHolland----the way I am doing it now I have to go into the origanal vendor and check to see how it was shipped, etc and then receive USHOLLand from the original vendors PO.

I am sure there is a better way.....because this would be a nightmare for the folks that use PO invoices.

Thanks,
Laura

Title: Re: frt on purchase order
Post by aricon on 05/23/03 at 13:42:44

I could tell you how my clients here handle it, but my understanding is that your GAAP requires different rules than Canada's. Up here we just use the landed-cost processing when it is coming across the border and when it isn't, the freight is usually built into the total invoice price, so it is handled at PO invoicing.

Sorry I cannot be of more help.

Title: Re: frt on purchase order
Post by Karen Mason on 05/27/03 at 11:32:51

Laura,
I just voucher the freight bills. I don't use P.O.'s for them. Treat it like the gas or electric bill (presuming, of course, you are not using P.O.'s for them). Doesn't seem to be a reason to use the P.O. system on a non-inventoried item like freight.

Title: Re: frt on purchase order
Post by Lynn_Pantic on 05/27/03 at 11:40:57

Also, if you want the actual inventory item to carry a burden for freight, you can assign a Freight Percentage in IN-B. This will add a percentage of the PO Price to the inventory value to account for the freight. It is an approximation and can be verified periodically by comparing the balance in the Absorbed Freight In account with the actual incoming freight account.

Title: Re: frt on purchase order
Post by Laura on 05/28/03 at 08:43:18

Thanks Karen,
One of the problems we have is that sometimes our vendor will add frt to their invoice... AND... we will get a bill from the truck lines. I don;t want to pay anything twice!

I was thinking that as long as my girl had had to pay from a line item off our PO we wouldn't end up double paying a frt bill.

Laura

Karen said " I just voucher the freight bills. I don't use P.O.'s for them. Treat it like the gas or electric bill (presuming, of course, you are not using P.O.'s for them). Doesn't seem to be a reason to use the P.O. system on a non-inventoried item like freight. "