System Data - Using Freight Charges

Overview

This process describes how to best account for freight charges, including how to apply tax on freight amounts and how to enter freight amounts in the Accounts Payable and Accounts Receivable modules.

Process

  1. Set Up Freight Accounts

    Screenshot of Maintain Customers

    Pgm: BPCUSTFM – Maintain Customers; standard Treeview path: Accounts Receivable > Setup > Maintain Customers – Accounting tab

    Freight accounts are maintained on the Accounting tab of the Maintain Customers screen in the Accounts Receivable module. Enter the freight department and account in the Freight field, as shown in the screenshot above. The freight account is credited whenever sales invoices are entered with a freight charge.

    For more information, please refer to Accounts Receivable - Maintain Customers - Accounting - Tab.

  2. Set Up Discount Settings

    Screenshot of Maintain AR Control Settings – System Defaults tab

    Pgm: ARCTRLFM – Maintain AR Control Settings; standard Treeview path: Accounts Receivable > Setup > Local Tables > Control File Options – System Defaults tab

    The Discount Settings section on the System Defaults tab of the Maintain AR Control Settings screen is used to indicate if freight amounts are added to an invoice total before or after discounts are calculated. Check the 'Freight' box, as shown in the screenshot above, to indicate that freight is to be added to the invoice total before discounts are calculated. Leave this box unchecked if freight is to be added to the invoice total after discounts are calculated.

    For more information, please refer to Accounts Receivable - AR Control File - System Defaults - Tab.

  3. Set Up Tax Codes

    Screenshot of Tax Table Maintenance with 'Freight' box highlighted.

    Pgm: ARTAXFM – Tax Table Maintenance; standard Treeview path: System > Global Tables > Tax Code

    The Tax Table Maintenance screen is used to define if tax is applicable on freight charges. Check the 'Freight' box, as shown in the screenshot above, if the tax is applicable on freight charges. Otherwise, leave this box unchecked and the system will treat the freight amounts as lump sum amounts (no taxes will be applied).

    For more information, please refer to System Data - Tax Codes.

  4. Enter Voucher (AP)

    Screenshot of AP Enter Vouchers

    Pgm: VOUCHENT – Enter Voucher; standard Treeview path: Accounts Payable > Voucher > Enter Voucher – Defaults tab

    Freight amounts are entered in the Freight field on the Defaults tab of the Enter Vouchers screen in the Accounts Payable module. Whether or not a tax code is applied to this amount depends on the tax code’s ‘Freight’ checkbox. If it is checked, the tax code will be applicable to this amount.

    For more information, please refer toAccounts Payable - Enter Vouchers - Defaults - Tab (Override Vendor’s Defaults).

  5. Enter Invoice (AR)

    Screenshot of AR Invoice Entry

    Pgm: ARINVFM – Modifying Invoice Amounts and Defaults; standard Treeview path: Accounts Receivable > Invoice > Enter Invoices – Defaults tab

    Freight amounts are entered in the Freight field on the Defaults tab of the AR Invoice Entry screen in the Accounts Receivable module. Whether or not a tax code is applied to this amount depends on the tax code’s ‘Freight’ checkbox. If it is checked, the tax code will be applicable to this amount.

    For more information, please refer to Defaults – Tab.