item charge GL setup

Business Central/NAV User Forum
1

I have one question about the item charge GL setup.

If a company wants to include misc charges (freight, brokerage), into the value of the item (the true cost of the item), then you can use item charges.

If not, then on data entry you can do a seperate line entry with a line type of g/l account and point it to the freight GL account.

My question involves using item charges.

In the setup of the item charge, is it good to have the purchase account and the direct cost applied account pointing to the same gl account ? Becuase ultimately you want them to zero out, (because the freight cost will now be included with the inventory value). Correct ?

2

In some cases you would want to have 2 different accounts… Let say Freight and Freight Applied… In this case very easy to report what was total Freight for the period.

3

in our company purchases is debited and direct cost applied account is credited.

packing and forwarding is considered as item charge, but it is debited to :P& L and no corresponding effect is given to direct cost applied account.

How can it also be added to inventory account when it has been taken to p&L.

When the FG is consumed, will the COGS include the freight charges?

kindly clarify…