EXPENSES ON PURCHASES
When receiving a Purchase Order it is very usual that these come with additional expenses (freight, handling, special taxes, etc.). These expenses are significant in order to have an accurate final cost of the products.
Right now it is required that one puts each cost PER LINE of products, but as it is shown below, orders sometimes can have tens or even hundreds of lines. The manual input of cost per line can create opportunities for error, both in calculating the percentage of each expense (eg. a FREIGHT of 6800 usd divided in 44 lines) and the manual input of these quantities.
Just as an example, in another program we have used, these costs are allocated PROPORTIONALLY to the value of each line/quantity. And there are different concepts for expenses that are to be allocated to one line, but not to another.
Example:
FREIGHT 6800 USD - Allocated to ALL lines
CUTTING FEE 150 USD - Allocated to lines 1, 2.
SPECIAL TAXATION 850 usd – Allocated to line 5, 8, and 22.
This makes up for a much simpler way to calculate final costs. Reducing errors.
-
francisco ramos
- Mar 5 2021
- Future Consideration
Related ideas
This is something we find frustrating here as well. We have tried to set up a separate code for these, (discount, shipping, freight), etc. Then add to order as a part, but this is only a work-around. When adding amount in shipping charges to the receiver it actually puts it into shipping as income and not add to the cost of the purchase order as expense.
Attachments Open full size
I agree!! We may ship 12 items for 3 different customers for outside services, but can only apply the freight and all other additional costs to one line, not sharing that cost equally between the 3 customers.
Attachments Open full size