Adding Freight to Transfer Orders

Does anyone have a slick way to add freight charges to the plant in with product is being Transferred to?
It is straight forward on the sales order, but we have 12 branches that we send product too and want them to start absorbing freight on the transfers;

Can anyone help?

The site-to-site Transfer process is designed simply as a hi-falutin’ bin-to-bin move with no financial component (beyond transferring the inventory value as well as quantity), so there’s no slick way to add a freight charge.

t would have to be some kind of customization.

If all your parts are using the Standard Cost Method, you COULD go with separate Cost IDs per site, but that would not “charge” (expense) your sites for the transfer, just make their inventory account (asset) heavier.

Thanks Ernie,

We do have seperate cost IDs for all sites, but some parts are STD and some are FIFO.

I didn’t think there was a way, but thought I’d throw up a hailmary.

Appreciate you taking the time to respond.


if you are simply wanting to have the other site absorb the cost, but not embed that cost into the part, you could go “old school” on transfering that cost…

  1. create a part number called “TransferCost”
  2. assign that part a cost of 1.00 each as a STANDARD COST
  3. assign a special UOM Class of “dollars”
  4. mark the part as “non-qty bearing” making it so it does not retain the QTY
  5. assign the PART CLASS to this part as “Freight cost” and have the GL for the Expense account be a special Transfer Freight account, that flexes on the SITE.
    NOW all the setup is done…

Now, when you go to transfer your inventory, you also need to transfer some FREIGHT… to do that simply ship the freight with each shipment… the quantity is the number of dollars in cost. This will then Credit the shipping site, and debit the receiving site.