Item Charges on Already Sold Items

matttrax

We have a fairly high turnover rate on a lot of our items. Sometimes we don't get the freight bills for these items until after they have already come into and gone out of the system. We want to use item charges to apply the freight to specific items and have it reflected in the cost. But what happens is:

Purchase:
Credit Purchase Account
Debit Inventory Account

Sale:
Credit Inventory Account
Debit Cost of Goods Sold

Freight Bill:
Credit Purchase Account
Debit Inventory Account

The freight bill cost is never absorbed into the cost on the sales order and just sits there in inventory. I thought there would be an adjust report I could run like Adjust Cost, but that didn't work and didn't see any others. How do I get the extra cost out of inventory?

Mick01

When you apply item charge on sales entry, cost amount will be in "Cost Amount (Non-Invt.)" field.

Item charge never increase direct unit cost on sales.

matttrax

This is being applied to the receipt lines, not the shipment lines. It's being added as a line on a Purchase Invoice. We've already charged the customer for freight and don't want to invoice them for more.

This customer uses the same account number for a lot of fields in General Posting Setup. For example Purchase Account, Purchase Credit Memo Account, Purchase Discount Account, Inventory Adjustment Account, Direct Cost Applied, and Purchase Variance are all the same.

Maybe someone could tell me which accounts get hit and how when an item charge is applied? Or point me in the direction of a codeunit / function or documentation that I could take a look at? In the meantime I'll play around with it, but I'd like to understand the process. Thanks.

ajmalsherif

The Item Charge line sits in the VE for that Item LE. In addition to the Vendor purchase cost you should see a second line (where the Item Charge no column should be populated) for (say) freight