There are a couple of ways on how Other Charges are added to either Inventory Receipt or Voucher based on different scenarios. Here are items we will use in all of the scenarios.

This is the item.

This is the Other Charge item.

These are accounts setup for the Other Charge item.

 

This scenario should not be allowed since Price = checked and Accrue = checked for receipt vendor is same as cost did not occur.

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is unchecked
    2. Accrue checkbox is checked and vendor selected is the same vendor where the item will be coming from.
    3. Price is checked
  3. Save or click Recap or Receive toolbar button. The Price field will show a red border. Hover on that field and it will tell you that:
    The <Other Charge> is both a payable and deductible to the Voucher of the same vendor. Please correct the Price checkbox.

The following will detail Other Charge added as Other Expense to the item purchased and be payable to the Vendor where item is purchased.

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is unchecked
    2. Accrue checkbox is checked and vendor selected is the same vendor where the item will be coming from.
    3. Price Down is unchecked
  3. Click Post Preview. GL Entries should look like this.
  4. Post Inventory receipt. Go back to details tab, other charge should be included in the total of the receipt.
  5. Click Voucher Button to create voucher. This message will be shown.
  6. Click Yes. Voucher will be created.
  7. Click post preview tab, this voucher will record the Other Charges incurred in bringing the item to the company location. The amount of the Other Charge plus the amount credited to AP Clearing account from the Inventory Receipt is summed up and is passed to Accounts Payable.
  8. Click Post button to post the voucher.

The following will detail Other Charge added to the Item Cost and is payable to the Vendor where item is purchased.

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is checked
    2. Accrue checkbox is checked and vendor selected is the same vendor where the item will be coming from.
    3. Price is unchecked
  3. Click Post Preview Tab, posting Inventory Receipt with this scenario will add the Other Charge to the item cost. Notice from the Item cost of 100.00, it went up to 110.00, 10.00 being the Other Charge added to the item cost.

  4. Post the Inventory Receipt and process it to Voucher by clicking the Voucher toolbar button.
  5. Click Voucher Button to create voucher. This message will be shown.
  6. This is the Voucher created. Notice that the Other Charge is added as a separate line to record the Other Charge incurred.
  7. Posting this voicher will record the Other Charges incurred in bringing the item to the company location. The amount of the Other Charge plus the amount credited to AP Clearing account from the Inventory Receipt is summed up and is passed to Accounts Payable.
  8. Post the voucher..
    To further explain what happens to the Item cost since Other Charge is added to the Item Cost, open the Item record from the Voucher screen. The Last Cost as well as the Average Cost is updated with the new cost.
  9. Example: Item Cost = Inventory @ 110.00 / Qty received and Vouchered of 10
    = 110.00/10
    = 11.00

The following will detail Other Charge recorded as other charge and is payable to another vendor (not the vendor where the item is purchased).

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is unchecked
    2. Accrue checkbox is checked and vendor selected is another vendor (third-party vendor).
    3. Price is checked
  3. Click Post Preview Tab. GL entries should look like this.

  4. Post the Inventory Receipt and process it to voucher by clicking Voucher button.
  5. This is the Vocher created. Notice that only the item purchased is added in the grid. This is because the Other Charge is charged by a third party vendor.
  6. Post the Voucher.
  7. To record the Other Charge, create a new Voucher and select the third-party vendor. This is the Vendor selected in the Inventory Receipt > Charges and Invoice tab > Vendor (field next to Accrue checkbox).
  8. Go to Purcahasing AP>Vouchers>New. Select Voucher as type then enter third party vendor in vendor field.
  9. Click Add Payables. Add payable screen will open. Select the correspoding receipt then click Add button.
  10. The Other Charge is added in the Item grid. On this Voucher is where the Other Charge is recorded.
  11. Posting this Voucher will record the Other Charge payable to another vendor (third-party vendor).
  12. Post the Voucher.

This scenario should not be allowed as this is not possible. If cost is passed on to receipt vendor, it cannot be added to inventory cost.

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is checked
    2. Accrue checkbox is checked and vendor selected is another vendor (third-party vendor).
    3. Price is checked
  3. Save or click Recap or Receive toolbar button. The Price field will show a red border. Hover on that field and it will tell you that:
    <Other Charge> is shouldered by the receipt vendor and can't be added to the item cost. Please correct Price checkbox.

The following will detail Other Charge recorded as other charge and is payable to another vendor (not the vendor where the item is purchased).

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is checked
    2. Accrue checkbox is checked and vendor selected is another vendor (third-party vendor).
    3. Price is unchecked
  3. Posting Inventory Receipt with this scenario will add the Other Charge to the item cost.
  4. Post the Inventory Receipt and process it to Voucher by clicking Voucher Button.
  5. This is the Voucher created. Notice that only the item purchased is added in the grid. This is because the Other Charge is charged by a third party vendor.
  6. Posting this Voucher will zero out the AP Clearing account and pass that same amount to Accounts Payable for the amount of the Item cost only.
  7. Post the Voucher.
  8. To record the Other Charge, create a new Voucher and select the third-party vendor. This is the Vendor selected in the Inventory Receipt > Charges and Invoice tab > Vendor (field next to Accrue checkbox).
  9. Find for the Inventory Receipt transaction and select it. Go to Purchasing AP > Vouchers> New. This will open New Voucher screen. Select Voucher as Type then select the third party vendor and enter invoice number. Click Add Payables button.\
  10. The Other Charge is added in the Item grid. On this Voucher is where the Other Charge is recorded.
  11. Posting this Voucher will record the Other Charge payable to another vendor (third-party vendor).
  12. Post the Voucher.

The following will detail Other Charge recorded as an Other Expense as well as an Other Revenue that will offset each other.

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is unchecked
    2. Accrue checkbox is unchecked
    3. Price is checked
  3. Posting Inventory Receipt with this scenario will only record the item purchased.
  4. Post the Inventory Receipt and process it to Voucher by clicking the Voucher toolbar button.

    Notice also that in the Detail tab, there is the Total Charges shown. That same amount is the total Charges added in the Charges & Invoice tab.
  5. This is the Voucher created. Notice that in Item grid, the item and the Other Charge is shown but the Other Charge is shown as negative.
    add screenshot here once the Voucher is fixed.
  6. Posting this Voucher will record the Other Charge payable to another vendor (third-party vendor).
  7. Post the Voucher.
  8. Posting this Voucher will zero out the AP Clearing account and pass that same amount to Accounts Payable for the amount of the Item cost only. The Other Charge is recorded as an Other Expense as well as an Other Revenue that will offset each other.
    Add screenshot here once this is fixed
  9. Post the Voucher
    Add screenshot here once this is fixed

This scenario should not be allowed as this is not possible. If cost is passed on to receipt vendor, it cannot be added to inventory cost.

  1. Create Inventory Receipt. Select an item.
  2. Go to Charges & Invoice tab and select an other charge item. Setup the other charge item to have:
    1. Inventory Cost is checked
    2. Accrue checkbox is unchecked
    3. Price is checked
  3. Save or click Recap or Receive toolbar button. The Price field will show a red border. Hover on that field and it will tell you that:
    <Other Charge> is shouldered by the receipt vendor and can't be added to the item cost. Please correct Price checkbox.