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Evo-ERP and DBA Classic >> Manufacturing >> freight part# on Purchase Orders?
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Message started by Laura on 10/21/03 at 08:47:39

Title: freight part# on Purchase Orders?
Post by Laura on 10/21/03 at 08:47:39

I ordered oil dry on my Purchase Order.
. . . I used a part # called OILDRY.
on the same PO I used a part # called FRTonPO

Using a seperate part # for freight on a Purchase Order ensures that my receiving report matches.

Do most folks not deal with frt on their POs?
If you don't use a unique part for frt then how do you get your receiving reports to match?

I am asking because I want the frt cost to be fugured into my inventory value.

Thanks in advance!

Title: Re: freight part# on Purchase Orders?
Post by sunmfg on 10/21/03 at 10:45:21

I don't know of a good way to add freight cost to your inventory item. The costs come from two different vendors, usually, the material supplier and the freight co. If you keep adding freight cost to your FRTonPO item number, you have the problem of relieving that balance as material is used. That is more trouble than we want to deal with.

We cover the cost of freight by building it in to the standard cost for the finished product. You add a freight per unit amount for the type R BOM items in the "enter stds" section of IN-B. Then when the finished good part standard cost is rolled up, the freight is part of it.

DBA inventory transactions are costed on the "average cost", so we make sure that the very first transaction for a new FG part number is "enter finished production". That way the standard cost sets the average. If we need to ship before we are ready to enter finished production, then we do UT-K-F to set the average to equal the rolled up standard.

Title: Re: freight part# on Purchase Orders?
Post by aricon on 10/24/03 at 13:28:46

The international module has the ability to "tie" freight costs to inventory items through the use of a coding structure which ultimately links to the freight company record in the vendor master.

It is called Landed Cost processing. In Canada (and in New Zealand where Ezijobz was written) it is a requirement to value inventory in this manner.

Title: Re: freight part# on Purchase Orders?
Post by Lynn_Pantic on 10/24/03 at 14:17:21

DBA (including the International landed cost module) uses the Freight percentage in the inventory to burden items with freight. It is an approximation that is verified by comparing the balance in the Freight In account and the Absorbed freight in account.