We have a supplier who requires us to pre-pay a certain charge for materials. The supplier also requires that this charge be broken out on the purchase order from the materials. We want the average material cost to include this charge, though.
I can figure out parts of this: add miscellaneous charge to the PO line, check. Add a Landed Cost miscellaneous charge to an unreceived PO line on invoice, check. Add an Indirect Cost charge to a receipt, check. How on earth do I put these together so the General Ledger works out?
Misc Charges on the PO line can be added to invoices but not as Landed Costs, so I can’t bring them into the receipt with the invoice field on Indirect Cost. I’m afraid if I just add a new misc charge to the receipt, it’ll effectively double the expense in GL. I’m guessing the same would happen if we used Material Burden instead.
If this is too complicated for anyone but a paid consultant, I would welcome beginner resources on understanding the General Ledger, too. I don’t know the ramifications if we simply did regular cost adjustments for the material (to pick probably the worst option).
Each Misc. charge needs to be checked as a landed cost. You can apply these charges during or after the PO receipt. You can also disburse these charges against multiple lines based on volume, quantity, cost, etc. These charges will then act as an adjust-inventory transaction and add the costs of these received lines as an inventory costs, material burden. You can then enter the freight charges invoice from a vendor against the PO lines that were invoiced from another vendor for the material costs
How do you check the miscellaneous charges as LC? They are marked as such in Miscellaneous Charge Entry, but I don’t see a field for that in PO Entry.
If they were correctly set on the PO, would that cost be automatically pulled into Receipt Entry on the Landed Costs tab? (And yes, I do have that “Allow landed cost” box checked in Company Config.)
There is no field in PO Entry. If you use that misc charge checked as landed cost than you will be able to disburse those indirect costs in the receipt entry screen under the landed costs tab. Under the “Duty” field you can add import charges, fees, freight in, etc and then disburse those indirect costs
Okay, so this sounds like it’s just adding a new miscellaneous charge, not one connected in any way to the miscellaneous charge on the PO (which has to be there, because this is an up-front cost we pay the supplier). Isn’t that effectively doubling the GL’s view of how much we spend on this misc charge?