Freight on Down Payment Docs

[Former Member]

Hi All,

There is a client requirement to pay 100% adavance along with freight charges applicable against a PO .We can enter the freight details in the PO but the same is not available in A/P invoice.

How do we handle this scenario ?

Thanks,

Asap

[Former Member · Accepted solution]

Hi Asap

Reserve Invoices are easily identified apart from normal A/P invoices. You could look at the money bag (Payment means) on a Reserve Invoice to quickly see when the payment was done and for how much. You can also write reports, so Yes it is possible to identify if the payment was an advance payment.

Kind regards

Peter Juby

[Former Member · Accepted solution]

Hi Peter,

Thanks for the same.that was really helful.

Regards,

Asap

[K_Pauquet]

Hi Asap,

definite freight costs are generally only known when the item has been delivered & the invoice from the carrier has been received. Downpayments are by nature pay advances towards a future delivery to be followed by a future complete invoice that then takes the downpayment into consideration.

Should full payment be made in advance of the delivery, please use, as Peter says above, the reserve invoice functionality which includes freight.

If you have an estimation for the freight costs & you wish to reflect this in the downpayment invoice for less than 100% of the full invoice, you could use a non-stock item with appropriate GL account determination on row level.

All the best,

Kerstin

[Former Member]

Hi,

I think freight is always paid at actuals, thus once you receive the actual invoice from the vendor and bill from freight forwarder then you have to account it in A/P invoice.

As it is there is no option for the freight accounting in A/P down payment according to the best business practice, if you come up with work around I would be glad to know.

Thanks & Regards,

Aditya.

[Former Member]

Hi Asap

If you are using 100% then it makes no sense using down payment functions. These are more suited to a percentage under 100. Rather use the Reserve Invoice in this case and enter the freight charges here. You can then pay against the Reserve Invoice and do the Goods Receipt afterwards.

Kind regards

Peter Juby

[Former Member]

Hi Peter,

Thanks for the reply.This would handle most of the issues.

Only one clarification that would the user be able to identify that the payment has been paid in advance ?

Regards,

Asap