Distribute Freight and Other Costs

This feature is used to distribute costs, such as freight, to the individual line items of the purchase order. The function will prorate the unit cost of each item that is being received to include freight charges and other costs. This is useful when the cost of the freight or shipping is to be included in the purchase cost for the inventory item. The function will ignore all the items with no received quantity in the Received column.

An alternative method available to add freight to the cost of an inventory item to calculate the landed cost is to use the optional Landed Cost module. Review the Landed Cost Overview section for more details.

Complete the following steps to distribute freight costs:

1. Go to Expenses > Invoices and P.O.s and open an existing purchase order.
    
2. Select the Process > Distribute freight or other costs option within the purchase order menu and the following dialogue will appear:
   
3. Enter the shipping cost into this dialogue instead of the Freight field at the bottom of the Purchase Order. Click the OK button to distribute the cost to the products that have been received. The Unit Cost will reflect the original unit cost and the shipping cost.