• Registered: 03/28/2014
  • Posts: 5

Topic: packaging and shipping costs

Hi,

I include free shipping for orders I am receiving but there is still a cost to me for this.  I have set up an inventory item of type service, that is charged at 0 to the customer but has the purchasing pricing set to the real cost and the cogs account set to 5202 carriage.  When I process the invoice stock is updated but nothing is added the the GL account.  I must be doing something wrong but have no idea what.

Any help with setting this up would be very welcome.

  • Registered: 03/28/2014
  • Posts: 5

Re: packaging and shipping costs

I am still trying to get this working, I have found a line in the code that prevents the GL_trans from being updated if the item on the invoice classed as service.  If this is right, how would a company record costs for service items?

I would like to be able to select a packaging item on an invoice at 0 cost to the customer but updates the relevant cogs account with the true cost of materials so I can keep track of this cost.  The same with shipping costs, the postage costs me but is included in the total price to the customer so has be be taken out of the income from the sale as an expense.

How do others deal with free P&P items or service items without a physical inventory?

Thanks

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,089

Re: packaging and shipping costs

If you haven't bought the service you have no transaction to GL COGS.

If you have bought the service, the GL COGS account is updated when you made a supplier invoice.

/Joe

  • joe
  • Administrator
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  • Registered: 03/15/2007
  • Posts: 5,089

Re: packaging and shipping costs

Another thing. When you do a sales invoice, the shipping cost would never include a COGS account.
The shipping here is for outgoing compensation for the shipping costs that have been entered another way.

Please talk to a local accountant regarding these issues.

Joe