Topic: Handling, Shipping & Clearance

Hello,,

Right now we can add all the charges that we pay on the items that we purchase by adding everything like handling, freight & clearance to the Supplier Invoice as GL items. Right??

So for example ,
if we buy 10 computers for 1000$ then the purchase price for each computer is 100$
..lets say that the fees of freight and handling is 100$ then the item cost should be updated to 110$

right now the system fails to update the standard cost.

i believe that purchase price should show the item's price that we paid to the supplier "for reference".. which is correct now..
and the standard cost should be calculated automatically to show the item's price + any extra charges that we paid to get the shipment to our inventory.

some systems uses GR2 and GR3 and combine them with the GRN to get the correct cost..

i don't know how to do that in FA or if we can do it by using some trick that i am unaware of.

Re: Handling, Shipping & Clearance

Try to use line items to add the costs you want apportioned to the items and provide feedback. Also check if there are any settings - config, sys_prefs, etc that modify FA's computations.

Re: Handling, Shipping & Clearance

you mean creating a service item for freight and handling?

Re: Handling, Shipping & Clearance

@joe: I'm out of my depth here!

Possibly keep editing/ adding to the GRN till all costs are added in.

Re: Handling, Shipping & Clearance

The problem isn't with the items that we are buying from our suppliers..
the problem is the that needs to be added to the shipment which should alter the standard price of each item..
for example we receive our shipment by DHL.

how do we add the fees that DHL is charging to deliver a certain P.O

Re: Handling, Shipping & Clearance

The Developers have been discussing the landed cost of items some years ago. There are several ways of solutions, but we haven't come up with one up to now. @alaa,  if you have a good algorithm about how to do it, please contribute, and we will see how to solve it.

If you try to distribute the shipping to the items on the receival, then you shouldn't enter the shipping elsewhere. So you see this is not an easy task. The difficulties also start when you are crediting things.

You will probably have an estimation of about how much to include in the items to compensate for shipping.

And you will probably have an estimation of about how much to add on the purchase price to get a sufficient sales price.

/Joe

Re: Handling, Shipping & Clearance

@joe
the best way i am aware of is used by oracle systems..
they have the normal GRN like in FA but they have an extra GR2 and GR3 for services like freight and clearance.
after that the sum of GR2 and GR3 which are connected to the GRN is distributed among the items of GRN.
this will update the landing cost with the shipment and clearance and whatever charges that was made for the shipment to get into inventory and that wont change the purchase price for reference.

Re: Handling, Shipping & Clearance

@alaa

I will try to get Janusz involved into this discussion. I guess he can contribute with some values too.

Joe

Re: Handling, Shipping & Clearance

@joe
thanks..
i'll try to help as much as possible.

Respect.

Re: Handling, Shipping & Clearance

I have just talked to Janusz, and he will enter the discussion in a while. He just needs to be updated on the earlier discussions regarding the subject.

/Joe

Re: Handling, Shipping & Clearance

I would add to @Alaa concern. This problem also occurs in Imports. In Imports we are importing in USD but paying Custom Duty and other charges in Local Currency.

Since the supplier ledger needs to be updated with USD so the Item Cost is updated with only Purchase Price Converted in Local currency. and the other charges are not added to the item Cost.

Re: Handling, Shipping & Clearance

@joe, @itronics: any updates?