Building cost to a particular Sales Invoice

jonsan21

Hello,

I have a posted Sales Invoice which in the shipment process incurred additional cost (freight, handling, etc) which will be bear solely by our the selling party. What I want to ask here is that anyway I could build the cost into this particular Sales Invoice?

I had raised a Purchase Order to my Freight vendor and tried to assign the Charges (Item) to the Receipt line, but if I done so, it will adjust the cost of the whole receipt, not only the cost of the particular Sales Invoice. If I assign to the Shipment line, it doesn't build the cost and the Value Entry of the Sales Invoice not adjusted.

Any takers?

Rgds,

Jon.

ara3n

Run Adjust Cost. It will adjust the sales entry in Item ledger entry. It will not change the Sales Invoice.

jonsan21

Oh well, off course I have done that... But the Value Entries will only show the type Purchase? except for the Item Ledger Entry No. linkage to the Value Entry, how would I suppose to know that the 'actual' cost of the Sales invoice suppose to include this Purchase? It means I can't calculate the 'pure' Gross Profit?

Rgds,

Jon.

Shenpen

If I understand your needs right, what you need is assign a Purch Inv item charge to the sales shipment lines. It will create so-called "non-inventoriable cost" in the item ledger entry.

ara3n

Sure you can find the gross profit on invoice. If you add all the value in "cost amount actual" field in value entries for an item ledger you will get the total cost. Item Ledger has a flowfield for actual cost you can get the value from Item ledger as well. Get the sales amount from item ledger as well and subtracting gone from the other you'll get your gross profit.

Kowa

I've got the same issue with one of our clients.
One problem is that Report 113 Customer/Item Sales will set a filter on the Value entries :
WHERE(Source Type=CONST(Customer))
If a purchase invoice is used to assign the charge to the sales shipment lines, these
records will be ignored because the Source Type is "Vendor" and subsequently the profit calculation in this report is wrong.
Assigning item charges in this way is quite common demand, because these are often hidden in the line amounts of the customers sales invoice.
They will show up in the item ledger entries, but that is no solution because here the posting date is the shipment date and not the invoice date, the discounts are missing etc. All statistics regarding values should be based on the value entries, but this does not seem to be possible without modifying the cost adjustment routine or redesigning all statistical reports. :roll:

dsatria

We also have the same problem.
Anyone has tried it on SP2 ?

Alex_Chow

We resolved this by creating a margin report based on the item ledger instead of the value entry.

The value entry is only used to reconcile between your inventory and your G/L. When reconciling with the G/L, there are timing issues to take into consideration.

Kowa

Unlike Report 113 "Customer/Item Sales", Report 712 "Item-Sales Statistics" does take the "Cost Amount (Non-Invtbl.)" field from the Value Entries into account, sums it up together with the COGS and calculates its own average unit cost for the items sold in the selected period. That is the most accurate figure you can get.

Alex_Chow

Kowa wrote:

Unlike Report 113 "Customer/Item Sales", Report 712 "Item-Sales Statistics" does take the "Cost Amount (Non-Invtbl.)" field from the Value Entries into account, sums it up together with the COGS and calculates its own average unit cost for the items sold in the selected period. That is the most accurate figure you can get.

However, by doing this, you still will not get a "true" profitability since landed cost can occur a month or 2 into the future.

iceborg

We have a batchjob that relcalcualtes the Cost (checks the Acctual Cost in the Item Ledger(Value Entries) and updates the Posted Invoices & the Profit on Customer Ledger Entry. The batchjob keeps track of the last VAlue Entry since last run and process the new ones only.

Then the Profit in Customer Ledger & Statistics is useful :-)

girish.joshi

Not sure about this one, but its something I got from the Resources and Jobs manuals:

if you want to associate a cost with an invoice, and not to a particular item, aren't you supposed to use Resources?

From the manual:

• You can use resources to record “items” for which you do not track inventory quantities or calculate unit costs, such as a person's time or miscellaneous charges like freight. A customer can be invoiced for a resource: the price is taken from the resource's card. You can keep track of quantity sold and total sales. Only the sales and the resource sales accounts are posted to in general ledger. Only when a resource is used in connection with a job is the resource cost posted to the general ledger.