Managing Freight Costs on a BOM

Yahoo Archive
1
Thank you for the reply, I appreciate the creative solution below - we'll discuss and add it to our options.

Ken

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf Of b_ordway
Sent: Friday, June 01, 2012 1:14 PM
To: vantage@yahoogroups.com
Subject: [Vantage] Re: Managing Freight Costs on a BOM



Like you we get freight estimates and enter it as a misc. charge on the Sales Order.

For the actual values for freight invoices, we went a slightly different route than yours. In our case reporting is "good enough".
So no reopening of sales orders, etc...

Instead we customized a UD table/form and enter the Actual freight charges from the invoices there.

Then we customized reports to show freight estimates (misc. charges) and actual (UD table) and calculate the Gross Profit for the orders.
This allows us to break out freight trends and report on those too.

--- In vantage@yahoogroups.com<mailto:vantage%40yahoogroups.com>, Ken Williams <kwilliams@...<mailto:kwilliams@...>> wrote:
>
> We're probably a bit unique in our freight costs, as the size of our equipment is quite large. One thing we've struggled with is matching freight revenue (we typically pass revenue through to the customer) with freight costs.
>
> Our current process is, we get a quote on freight, add it as a misc. charge to the SO and invoice it within a couple of days of the original quote. We then wait for the freight invoice to come in and add it as an AP "job misc. charge" (which typically requires re-opening the job).
>
> One alternative I can see to get the costs incurred sooner would be to add it as a line item on the BOM and then cut and receive a PO. This is a bit more tedious then simply entering an AP job misc. charge, but would give us what we're looking for.
>
> The last alternative I can see would be to do job adjustments to capture the cost, but then we have to be careful when we get the actual invoice so we're not double-dipping with the costs.
>
> I'm hoping someone else has a better solution that doesn't require a PO but allows us to recognize the cost at the same time we recognize the revenue. Is there something with a misc. charge that I'm missing that would allow this?
>
> Ken
>
>
>
> [Non-text portions of this message have been removed]
>



[Non-text portions of this message have been removed]
2
We're probably a bit unique in our freight costs, as the size of our equipment is quite large. One thing we've struggled with is matching freight revenue (we typically pass revenue through to the customer) with freight costs.

Our current process is, we get a quote on freight, add it as a misc. charge to the SO and invoice it within a couple of days of the original quote. We then wait for the freight invoice to come in and add it as an AP "job misc. charge" (which typically requires re-opening the job).

One alternative I can see to get the costs incurred sooner would be to add it as a line item on the BOM and then cut and receive a PO. This is a bit more tedious then simply entering an AP job misc. charge, but would give us what we're looking for.

The last alternative I can see would be to do job adjustments to capture the cost, but then we have to be careful when we get the actual invoice so we're not double-dipping with the costs.

I'm hoping someone else has a better solution that doesn't require a PO but allows us to recognize the cost at the same time we recognize the revenue. Is there something with a misc. charge that I'm missing that would allow this?

Ken



[Non-text portions of this message have been removed]
3
Like you we get freight estimates and enter it as a misc. charge on the Sales Order.

For the actual values for freight invoices, we went a slightly different route than yours. In our case reporting is "good enough".
So no reopening of sales orders, etc...

Instead we customized a UD table/form and enter the Actual freight charges from the invoices there.

Then we customized reports to show freight estimates (misc. charges) and actual (UD table) and calculate the Gross Profit for the orders.
This allows us to break out freight trends and report on those too.




--- In vantage@yahoogroups.com, Ken Williams <kwilliams@...> wrote:
>
> We're probably a bit unique in our freight costs, as the size of our equipment is quite large. One thing we've struggled with is matching freight revenue (we typically pass revenue through to the customer) with freight costs.
>
> Our current process is, we get a quote on freight, add it as a misc. charge to the SO and invoice it within a couple of days of the original quote. We then wait for the freight invoice to come in and add it as an AP "job misc. charge" (which typically requires re-opening the job).
>
> One alternative I can see to get the costs incurred sooner would be to add it as a line item on the BOM and then cut and receive a PO. This is a bit more tedious then simply entering an AP job misc. charge, but would give us what we're looking for.
>
> The last alternative I can see would be to do job adjustments to capture the cost, but then we have to be careful when we get the actual invoice so we're not double-dipping with the costs.
>
> I'm hoping someone else has a better solution that doesn't require a PO but allows us to recognize the cost at the same time we recognize the revenue. Is there something with a misc. charge that I'm missing that would allow this?
>
> Ken
>
>
>
> [Non-text portions of this message have been removed]
>