This guide describes how customs and freight costs included in a purchase order can be accounted for in the inventory value of products in Rackbeat and Netvisor systems. The guide presents two different options for achieving this.
CONTENTS
If a purchase order includes customs or other freight costs and these costs are variable and you want to include them in the inventory value of the products, this can be constructed in two ways.
Option 1
- Create a product group that is not inventoryable
- Choose the more suitable option from below:
- Yes, based on quantity: The price of the non-inventoryable product on the purchase order is distributed among the purchase prices of other inventoryable products on the purchase order based on the quantity of the product
- Yes, based on value: The price of the non-inventoryable product on the purchase order is distributed among the purchase prices of other inventoryable products on the purchase order based on the value of the product
- Add, for example, a product "freight" and select the previously created product group as its product group.
Option 2
Set an appropriate additional cost price for existing inventoryable products that incur freight or transportation costs and you want to account for these in the product's inventory value. This is done for each product for which customs duties must be paid or whose inventory value you want to increase by a fixed percentage.
When a product is added to the Rackbeat purchase order line, Rackbeat sets the unit price according to the settings (recommended purchase price, unit conversions, possible supplier price list, etc.). In the example, the purchase price is €29, which was the recommended purchase price.
Receive the purchase order.
Check the entries report (reporting > entries) to ensure that the unit price has been increased by 2.5% (29*1.025=29.725) rounded to €29.73
Freight costs cannot be allocated to the purchase order using Netvisor's allocation functions, so make a choice:
Leave the freight cost unaccounted for in the inventory value.
Increase the inventory value with an inventory transaction in Rackbeat.
Invoice the purchase order manually in Rackbeat, and leave the purchase order and purchase invoice unallocated to each other in Netvisor.
In this example, we go with option 3 and create an invoice from the purchase order in Rackbeat:
1. When the actual purchase invoice arrives in Netvisor, do not allocate it normally to the purchase invoice (which transfers the purchase invoice to Rackbeat).
2. Find the relevant purchase order on the Rackbeat side and select "Create invoice" from the end of the line
This creates a purchase invoice from the purchase order for the same products.
3. Manually add the previously created Freight product or equivalent and give it the desired price that needs to be allocated to the products in the purchase order.
In the example, the freight price is €120
If the actual purchase invoice already exists in Netvisor, the number can be completed on the Rackbeat invoice. This is optional but may help later.
4. Finally, record the purchase invoice from the Rackbeat side. This does not affect Netvisor's accounts payable or purchase orders in any way. In this case, the price of the product in stock increases by the amount of freight costs, but the transaction is not recorded twice when the purchase invoice has already been made from the received purchase order.
5. Check the unit price from the Entries report. The freight added to the invoice has been added to the inventory transaction value.
(old value 29.73+120= 149.725) rounded to the value 149.73
In this case, the entire freight cost went to one piece because there was one product line with one piece on the invoice.
6. Finally, the purchase order in Netvisor can be archived from Netvisor.
Keywords: Rackbeat freight cost, customs, purchase order
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