Landed Cost Sage 100
What you need to know about Sage 100 Landed Cost
Can freight expenses be paid before the receipt of inventory and the corresponding invoice? – Using Sage 100 there is a way to set up landed cost if you are a distribution or manufacturing company and need to add the additional costs to the original cost of an inventory item.
Referred to as landed cost the answer is yes. Freight expenses can be paid before the receipt of inventory and the corresponding invoice. Prepayments are usually recorded in Sage 100 Manual Check and payment entry. In addition they can be included in Sage 100 Invoice Payment Selection, Sage 100 Transaction Journal Entry and Sage 100 general journal entry. These prepaid freight expenses can be allocated to inventory. In addition to meeting the conditions listed for the allocation of standard freight, you must also assign an account number in the Prepaid Freight Expense Account field in Purchase Order Options. This account is credited during the Receipt of Goods / Invoice Data Entry update. The original posting recorded in the Accounts Payable or General Ledger module is then reversed.
An example of landed cost can be illustrated as a $312.00 invoice processed in Receipt of Goods Entry, with $50.00 of the freight expense prepaid. These posting reverses an entry to prepaid freight that was originally recorded in the Accounts Payable or General Ledger module.
The following are the effect to the Sage 100 general ledger after all transactions are recorded and have been updated.
|Item Receipt (Product A)||Inventory – Product A||75.00|
|Item Receipt (Product B)||Inventory Product B||225.00|
|Invoice Amount||Accounts Payable||250.00|
|Prepaid Freight Amount||Prepaid Freight Expense||______||50.00|
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