Internal Accounting for Freight Cost

Before you start

Refer to these documents:

See Basic Settings for Freight Cost and Freight Cost Calculation

See Settings for Freight Cost Distribution

See Manage Freight Cost Calculation

See Manage Freight Cost Distribution

Settings for internal accounting for freight cost

• Settings on the freight agreement header (PPS100)

  The Distribution accounting method sets whether the distributed freight cost creates an internal account entry in (CAS950) or not. You cannot change the distribution accounting method after you created the freight cost elements. If you want any costing element in the freight costing model to be accounted, you must specify a value in this field.

• Settings on the freight agreement header and on freight cost element (PPS100/PPS105)

  The Included in internal freight cost check box sets whether the freight cost amount is included when internal account entries are generated.

  The Included in freight cost on PO trans check box sets whether the freight cost amount is included when freight purchase order transactions are generated. If these settings are enabled on the freight agreement header (PPS100), all the elements in the model have the same setup. If it is enabled on the freight cost element level (PPS105), it only applies to that specific freight cost element. A freight agreement or a freight cost element cannot have both these parameters selected as this controls whether the freight cost is internal or external.

Manage internal accounting for freight cost

All distributed freight cost transactions are generated on accounting event DR10 and accounted on accounting type 940 (Freight cost), 941 (Offset account internal freight cost), and 942 (Accumulated freight purchase order cost).

Accounting event PP10 and accounting type 225 (Received not invoiced) and 942 (Accumulated freight purchase order cost) are created when the freight PO is received.

If there is a rounding difference between calculated total amount and distributed total amount, it is accounted on accounting type 280 (Rounding off).

To avoid any discrepancy between what is calculated, distributed and accrued, the status of the calculated freight rate header is set to 80 (Internal accounting started) when in (CAS953), an update to an internal account entry is for a specific transaction number is approved. When the internal account entry is finished, the status is set to 90 (Accounted)

To trigger the internal account entry in (CAS950), activate 'Other transaction' parameter, and then click Next. After that, the distributed freight cost transactions can then be displayed in (CAS300).