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Apr 29, 2014 at 09:25 PM

Account Type for Freight GL account

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Hi All,

My client wants to add the freight charges to Inventory account while posting the Goods Receipt.

To achieve this functionality, we can add a GL account in automatic account determination for FR1 key.

I would like to know, what type of GL account we should assign in OBYC for FR1 key? Whether it should be a balance sheet account or P&L account and also the reasons.

I did some googling and noticed the below statement:

- If the freight is part of an asset’s cost, it is to be considered an extension of the asset’s overall value. That means that, in practice, it is recorded as part of the asset’s value and figured into your calculations as a “laid down cost.”

Can you please give your valuable suggestions on the above.

Regards,

Praisty