To distribute freight and handling charges:Use the OE Freight Distribution screen to override freight and handling charges and distribute them to general ledger accounts. Freight or handling that is not considered directly billable to the customer is included in your company's overhead and added to the order's cost of goods sold (COGS). As a result, a sale in which freight is not directly charged to the customer reduces the sales representative's commission.
To distribute freight and handling charges:
Create or open a sales order and display the order's Totals screen.
Use the Freight hot key to display the OE Freight Distribution screen.
Complete the following fields, as needed:
|
Field |
Column |
Description |
|
Incoming Freight |
Billable |
The freight charges you pay the vendor when they ship the item to you. You can charge this amount to the customer through A/R. To credit a customer for freight, enter a negative amount. If the customer is freight-in exempt and you enter an incoming billable freight charge, the system issues a warning that the customer is exempt. Press Enter to acknowledge the message and either leave the charge as entered, change it, or delete it. The system will tax for freight if either Freight In or Freight Out is selected as the tax code's general ledger ID. |
|
Incoming Freight |
Expense |
The freight charges you pay the vendor when they ship the item to you. You can expense this amount to the item's cost of goods sold (COGS) G/L account. To credit a customer for freight, enter a negative amount. When you expense freight, you can better estimate the gross margin for the item. The system will tax for freight if either Freight In or Freight Out is selected as the tax code's general ledger ID. |
|
Outgoing Freight |
Billable |
The freight charges you pass on to a customer when you ship the item to them. To credit a customer for freight, enter a negative amount. If the customer is freight-out exempt and you enter an outgoing billable freight charge, the system issues a warning that the customer is exempt. Press Enter to acknowledge the message and either leave the charge as entered, change it, or delete it. The system will tax for freight if either Freight In or Freight Out is selected as the tax code's general ledger ID. |
|
Outgoing Freight |
Expense |
The freight charges you absorb when you ship the item to the customer. You can expense this amount to the item's cost of goods sold (COGS) G/L account. To credit a customer for freight, enter a negative amount. When you expense freight, you can better estimate the gross margin for the item. The system will tax for freight if either Freight In or Freight Out is selected as the tax code's general ledger ID. |
|
Incoming Handling Charges |
Billable |
The handling charges you pay the vendor when they ship the item to you. You can charge this amount to the customer through A/R. To credit a customer for handling charges, enter a negative amount. The system will tax for handling if either Handling In or Handling Out is selected as the tax code's general ledger ID. |
|
Incoming Handling Charges |
Expense |
The handling charges you pay the vendor when they ship the item to you. You can expense this amount to the item's cost of goods sold (COGS) G/L account. To credit a customer for handling charges, enter a negative amount. When you expense handling, you can better estimate the gross margin for the item. The system will tax for handling if either Handling In or Handling Out is selected as the tax code's general ledger ID. |
|
Outgoing Handling Charges |
Billable |
The handling charges you pass on to a customer when you ship the item to them. To credit a customer for handling charges, enter a negative amount. The system will tax for handling if either Handling In or Handling Out is selected as the tax code's general ledger ID. |
|
Outgoing Handling Charges |
Expense |
The handling charges you absorb when you ship the item to the customer. You can expense this amount to the item's cost of goods sold (COGS) G/L account. To credit a customer for handling charges, enter a negative amount. When you expense handling, you can better estimate the gross margin for the item. The system will tax for handling if either Handling In or Handling Out is selected as the tax code's general ledger ID. |
Press Esc to return to the Totals screen. Any amounts you overrode are marked with an asterisk (*).
See Also: