Purchase Orders

We currently have a supplier that is charging us a surcharge based on weight for each part we buy. He is also charging us for the shipping container. IS there a way to roll these costs into the individual piece price. Each of these extra costs are a separate line item on the invoice and we do not know ahead of time what we will be charged. I know that landed cost might work, but is there another way to get the cost into the piece price without adjusting the PO when the invoice comes in. We are using average costing.

If you add a misc line charge to each line (not the PO header), there will be an cost adjustment created when running the WIP Capture report and process.
Test this, may be an easy win.

Another option is to add a Material Burden rate on the part.

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You can always roll up the total surcharge and then apply to the material burden through a landed cost on the receipt. The module has an option to apply by a number of methods, one of which is weight of the shipment.

We use this for 3rd party late costs also when another carrier charges us the freight or customs costs.

Will this work if we are buying to inventory and not to a job

I ran through this again. The misc charge on the PO line creates a ADJ-CST, after invoicing, on the wip recon report and hits the inventory adjustment account. this does not change the part cost.

But you could use the info from the ADJ-CST tran to manually do a Cost Adjustment. Setup the reason code’s GL Controls, and you could have it negate the ADJ-CST generated at the time of invoice entry.

Rich, We just purchased the Landed Cost module to do exactly what you want to do.

We use average lot costing and we want the freight and extra inbound costs to be added to the part costs. the Landed cost module puts these costs into the Material Burden bucket.

I did not find another way to get the actual incoming freight costs into the part cost.