item charge GL setup

cveale

I have one question about the item charge GL setup.


If a company wants to include misc charges (freight, brokerage), into the value of the item (the true cost of the item), then you can use item charges.

If not, then on data entry you can do a seperate line entry with a line type of g/l account and point it to the freight GL account.

My question involves using item charges.

In the setup of the item charge, is it good to have the purchase account and the direct cost applied account pointing to the same gl account ? Becuase ultimately you want them to zero out, (because the freight cost will now be included with the inventory value). Correct ?

john_bellinger

Not necessarily. I tend to setup those accounts separately on most projects (I only use one account if the client feels strongly). By separating into separate accounts you have a quick way to identify total Purchases during a period vs. the amount that was applied to inventory. Even though they generally zero out, there are scenario's that would cause them to not tie out (purchase credit memo where the credit does not cover the cost of the item).