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      Customer Shipment Expenses for Sales Orders

      Landed Cost doesn't support customer shipment expenses. However, they can still be entered and tracked by Customer (Job/Project)

      Overview

      Many customers may look for a method to accurately apply transportation charges to a sales order via landed cost. However, landed costs in Acctivate are specifically designed to allocate costs to inventory from receipts, assemblies, transfers, or applied to stock on hand.

      Shipping costs and other expenses related to customer sales orders are not landed cost and not supported by our landed cost feature.

      This article outlines the best practices for handling transportation costs associated with shipping inventory to customers.

      1. Landed Costs are for Inventory Valuation and Cost of Goods Sold (COGS)

        • Landed costs are applied to the inventory value and are distributed across receipts, assemblies, transfers, or the stock on hand.

        • They cannot be applied to specific customers or sales transactions

      2. Adding Shipping Charges to Sales Orders

        • You can add shipping charges to be billed to customers on a Sales Order. 

        • Shipping charges on a Sales Order do not create an additional COGS or expense.
      3. Vendor Bills for Customer expenses
        • QuickBooks allows a specific Customer (and Job/Project) to be selected for a Vendor Bill expense line.
        • You can also select the Billable option to create a separate invoice for the shipping charges to the customer. These expenses cannot be added to an Acctivate sales order or invoice. 

      Conclusion

      • Split out the Vendor Bill lines by Customer in QuickBooks to track Shipping Expense by Customer (Job / Project).
      • Add a Shipping Charge Product to the sales order OR using Billable expense lines on the Vendor Bill in QuickBooks if you need to bill the customer directly for the expense.
      • Enable the Summarize COGS by Customer/Job option in Acctivate if you're looking to run the Profit & Loss by Customer (Job / Project) report in QuickBooks.

      • QuickBooks Online needs the "Track expenses and items by customer" option enabled to select a Customer / Project on a Vendor Bill.