Sage 100

I have a client that ships internationally and would like to capture the outbound freight / insurance costs etc as part of the cost of sales on the invoice to the customer. Any suggestions, or am overlooking the obvious?  Thanks.

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John Leonard
President
JLA Consulting
Metairie LA
504-835-9639
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Landed costs??

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Therese Logeais, Technology Integrators
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------Original Message------

Landed costs??

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Therese Logeais, Technology Integrators
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It depends what you mean by "capture".  If they want the freight amount that is entered on the totals screen to be coded to the cost of goods sold GL account then change the account number in AR division maintenance to the cost of goods sold GL account.  If they want to allocate the freight cost across each product sold then this is a more complex issue.

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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Is your customer trying to get a gross profit by item or is this a financial reporting issue?  Since the out bound freight is normally booked as income, there is typically a "wash" on the financial statements.. the expense if offset against the income unless the freight is being marked up.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

------Original Message------

Is your customer trying to get a gross profit by item or is this a financial reporting issue?  Since the out bound freight is normally booked as income, there is typically a "wash" on the financial statements.. the expense if offset against the income unless the freight is being marked up.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 10-17-2019 12:36
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

I have a client that ships internationally and would like to capture the outbound freight / insurance costs etc as part of the cost of sales on the invoice to the customer. Any suggestions, or am overlooking the obvious?  Thanks.

------------------------------
John Leonard
President
JLA Consulting
Metairie LA
504-835-9639
------------------------------

Are they marking up the freight cost when they bill it on the invoice?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 10-17-2019 12:54
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

They are trying to get gross profit by invoice / item.  They are coding the freight in and freight out correctly in the GL.

 

John P. Leonard, CPA, CITP

JLA Consulting

(504) 835-9639

(504) 835-7850 (FAX)

www.jlaconsulting.net

 

Original Message------

Is your customer trying to get a gross profit by item or is this a financial reporting issue?  Since the out bound freight is normally booked as income, there is typically a "wash" on the financial statements.. the expense if offset against the income unless the freight is being marked up.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 10-17-2019 12:36
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

I have a client that ships internationally and would like to capture the outbound freight / insurance costs etc as part of the cost of sales on the invoice to the customer. Any suggestions, or am overlooking the obvious?  Thanks.

------------------------------
John Leonard
President
JLA Consulting
Metairie LA
504-835-9639
------------------------------

------Original Message------

Are they marking up the freight cost when they bill it on the invoice?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

If the freight cost is currently part of the unit selling price you may be able to calculate the freight portion to add to cost of goods sold for each item.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 10-17-2019 13:02
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

I am not sure - they may include the freight cost as part of the selling price.  Not sure what you are getting at?

 

John P. Leonard, CPA, CITP

JLA Consulting

(504) 835-9639

(504) 835-7850 (FAX)

www.jlaconsulting.net

 

Original Message------

Are they marking up the freight cost when they bill it on the invoice?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Even if there is / was a way to allocate the outbound freight costs to line items, how do they want to allocated it?  by unit cost?  by unit weight?  by item quantity sold? based on the freight cost specified international HTN code?

Are they proposing the freight charges be added into the physical inventory valuation similar to bound freight costs / landed costs before the invoice is created?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------

Original Message:
Sent: 10-17-2019 12:54
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

They are trying to get gross profit by invoice / item.  They are coding the freight in and freight out correctly in the GL.

 

John P. Leonard, CPA, CITP

JLA Consulting

(504) 835-9639

(504) 835-7850 (FAX)

www.jlaconsulting.net

 

Original Message------

Is your customer trying to get a gross profit by item or is this a financial reporting issue?  Since the out bound freight is normally booked as income, there is typically a "wash" on the financial statements.. the expense if offset against the income unless the freight is being marked up.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 10-17-2019 12:36
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

I have a client that ships internationally and would like to capture the outbound freight / insurance costs etc as part of the cost of sales on the invoice to the customer. Any suggestions, or am overlooking the obvious?  Thanks.

------------------------------
John Leonard
President
JLA Consulting
Metairie LA
504-835-9639
------------------------------

Create a SO detail line for outbound freight, then write a script to allocate the total freight (header UDF) to each line based on what ever formula you come up with.  Map the SO detail UDF to the AR invoice history detail then run your reports using this table.

@Dan Burleson has done similar scripts for me.
​

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 10-17-2019 13:09
From: Doug Higgs
Subject: Capturing outbound freight / ins costs on invoice

Even if there is / was a way to allocate the outbound freight costs to line items, how do they want to allocated it?  by unit cost?  by unit weight?  by item quantity sold? based on the freight cost specified international HTN code?

Are they proposing the freight charges be added into the physical inventory valuation similar to bound freight costs / landed costs before the invoice is created?

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 10-17-2019 12:54
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

They are trying to get gross profit by invoice / item.  They are coding the freight in and freight out correctly in the GL.

 

John P. Leonard, CPA, CITP

JLA Consulting

(504) 835-9639

(504) 835-7850 (FAX)

www.jlaconsulting.net

 

Original Message------

Is your customer trying to get a gross profit by item or is this a financial reporting issue?  Since the out bound freight is normally booked as income, there is typically a "wash" on the financial statements.. the expense if offset against the income unless the freight is being marked up.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc


Original Message:
Sent: 10-17-2019 12:36
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

I have a client that ships internationally and would like to capture the outbound freight / insurance costs etc as part of the cost of sales on the invoice to the customer. Any suggestions, or am overlooking the obvious?  Thanks.

------------------------------
John Leonard
President
JLA Consulting
Metairie LA
504-835-9639
------------------------------

------Original Message------

Create a SO detail line for outbound freight, then write a script to allocate the total freight (header UDF) to each line based on what ever formula you come up with.  Map the SO detail UDF to the AR invoice history detail then run your reports using this table.

@Dan Burleson has done similar scripts for me.
​

------------------------------
Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Invoice Header UDF, then deal with the calculations in your custom report.  Simple and it doesn't change any of the accounting.

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Kevin Moyes
Technical Systems Analyst
Munjal White Consulting Co.
Toronto ON
------------------------------

Original Message:
Sent: 10-17-2019 12:54
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

They are trying to get gross profit by invoice / item.  They are coding the freight in and freight out correctly in the GL.

 

John P. Leonard, CPA, CITP

JLA Consulting

(504) 835-9639

(504) 835-7850 (FAX)

www.jlaconsulting.net

 

Original Message------

Is your customer trying to get a gross profit by item or is this a financial reporting issue?  Since the out bound freight is normally booked as income, there is typically a "wash" on the financial statements.. the expense if offset against the income unless the freight is being marked up.

------------------------------
Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
------------------------------


Original Message:
Sent: 10-17-2019 12:36
From: John Leonard
Subject: Capturing outbound freight / ins costs on invoice

I have a client that ships internationally and would like to capture the outbound freight / insurance costs etc as part of the cost of sales on the invoice to the customer. Any suggestions, or am overlooking the obvious?  Thanks.

------------------------------
John Leonard
President
JLA Consulting
Metairie LA
504-835-9639
------------------------------

We usually use this method. Set up miscellaneous charges for the freight costs as line items.  Have these set to zero selling price with the cost entered manually on the line or calculated via script. Hide those lines during printing because they do not impact the invoice total but they will impact the margin on the invoice.  (and also commission if based on profit).  They will either post to GL or not depending on your setup.

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alan niergarth
Velosio LLC
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