Posting Freight to Purchase Order Lines
- Kim Dyer
Freight charges can be recorded and listed as a single line-item on the purchase order with the entire cost of the freight. Alternatively, the freight charge can be automatically divided up and a portion of the freight added to each individual part.
If the freight is divided up between the parts, then the cost of the freight will be recouped when the part is sold on a work order. Using the bulk post for freight makes posting freight faster while still giving the fleet the opportunity to recoup the costs.
RTA uses the following formula to calculate how the total freight charge is divvyed across all the part lines on the PO when using the <Add Freight> link on the PO.
The formula applies to all selected lines on the PO
Freight Charge = (Line Price x Line Quantity) x (Freight Amount/Total of Selected Lines)
Total of Selected Lines used in the formula above is determined by using the sum of all the selected lines (Line Price x Line Quantity)
While the PO is still open, use one of the below options to post freight to the purchase order.
Bulk Post Freight Across PO Lines
The bulk post freight across lines will ensure that the cost of freight is attributed to the total cost of the part and, when using average price, will adjust the sell price for the part.
Access the purchase order through the PO Search screen by select the PO from the PO search which can be found under the PO’s section under Parts Management
Select either the “Select All' option or click the selector boxes beside the po lines to which freight will be attributed
Click Add Freight
Enter the total freight cost
Select “Post Freight to Lines”
The box will display how much freight is being attributed to each line
Click Save
Manually Input Freight on PO on a Line by Line Basis
It is recommended that if wanting to add freight to specific purchase order lines, to use the bulk option so the formula can be used to attribute cost. However, this option can be used quickly to add the total cost of freight to a single line or if wanting to divvy out the cost using your own formula.
Access the purchase order through the PO Search screen by select the PO from the PO search which can be found under the PO’s section under Parts Management
Click the line item for which the freight will be attributed
Click Edit
In the Freight field, input the amount of freight to be attributed to the line (The order total for the line will then adjust to include the order price, any tax rate that is listed, and the freight amount)
Click Done
Post Lump Freight Cost Without Adding to Line Items
This option will not affect the sell price of the part as it will not be factored into the cost of the individual parts and instead lives as an overall cost item.
Access the purchase order through the PO Search screen by select the PO from the PO search which can be found under the PO’s section under Parts Management
Click Add Freight
Enter the total freight cost
Click Save
