Freight as part of inventory balance
When creating Purchase orders (SPO) and receiving goods, freight percentage will by default be updated from the product, if a freight percentage is set up in the Product (ART) application. Freight percentage may also be added or adjusted manually, directly on the Purchase order item (SPOITEM) or Goods reception item (SSAITEM). This will affect the landed cost on the Goods reception item (SSAITEM) and the cost when the stock is allocated to productions or sold to customers.
The company setting, Include freight in inventory balance, is an on and off setting. By activating this setting, inventory balance in GL will have separated items for the freight value.
Inventory balances (INVBAL) application, and related reports, will display separate columns for freight if the setting is activated, and the total balance will be included freight. The Stock value register (SVR) application, which displays inventory values for products, will show additional columns and fields for the freight value.
In the Stock (STOCK) application, and in the application showing Stock Items (STIITEMS), the Work In Progress values are replaced by Freight values, allowing the user to see the amount of freight values that is put into stock. Changes in these applications will affect values that are displayed in the tabs Totals, Stock Value History, Stock transaction types and Stock transactions. Also in the Product (ART) application, in the Stock tab where stock values are displayed, the freight value replaced the work in progress values.
It will be possible to post freight values to separate GL accounts by using the General ledger default account assignments (ACD) application to link the GL accounts. 2 new default account settings have been created to make this possible:
Account default for inventory, balance side : Inventory Balance, Freight value
Account default for inventory, result/cost side : Inventory Balance Changes, Freight value
If these settings are not linked to any GL accounts, the freight will be added to the existing GL accounts for the inventory balance.
Cost calculation for production and billing (sales invoices) will not be affected by these changes as freight is already included in the total cost in production and billing system.