purchase orders with freight

Purchase orders can be created for products with the option to add a freight cost that is applied to the product. The additional freight cost can be paid to a separate transportation vendor. Depending on how the freight product is defined, the cost of the freight can be allocated to the inventory cost of the product or alternatively coded to a separate freight account and not included in the inventory cost of the product. There are various freight options available where the vendor and price are confirmed at purchase order. There is also an option to add a temporary vendor and an estimated freight cost to the purchase order with  the ability to modify the transportation vendor and rate at time of receiving.

The following items must be completed prior to creating a purchase order with freight:

• Create product with vendor sku
• Create transport vendor
• Create freight product
• Assign vendor to freight product

Create a Purchase Order with Freight

The basic steps to create the purchase order for the product are the same as outlined in Create a Basic Purchase Order. In addition to those steps, the freight line must be added to the purchase order. It is important to note that the freight line is completely independent for from the product line as far as vendor, currency, add-ons and taxability.

1. Create purchase order using the same steps as outlined in the Create a Basic Purchase Order.
2. Once the header details have been populated, click on the line details grid and select to add the line for the product that will be purchased.
3. Set the Freight Type to Excluded or Delayed.
1. Excluded: Indicates that there will be additional freight charge. The haulage vendor and rate is known when the purchase contract is created.

2. Delayed: Indicates that there will be additional freight charges. The haulage vendor and the rate is not confirmed at the time the purchase contract is created.



4. Once the product line details have been entered, click to add the line for the freight.

5. Select the Haulage Vendor No for the vendor that is going to be hauling the product.

6. Select the Vendor SKU No for the freight product. The haulage vendor must be assigned to the freight product in Products>Freight>Vendors prior to being selected on the purchase order.

7. In the Vendor Unit Price, enter the rate per unit depending on the freight type.

1. Calculated: Enter the rate based on a unit of measure (Example: Rate per ton).

2. Load: Enter rate per load. The total amount allocated to the purchase order will be calculated using the No of Receivings from the product line item.

3. Order: Enter the rate for the purchase order.



 

8. Once the freight line has been created, the freight line needs to be assigned to the product line or multiple product lines if applicable. This process links the freight to the product so that the freight cost will be calculated for the products.
9. In the Freight field, click on the drop-down to select the freight line that will be assigned to the product line. Repeat the process for all products that need to have the freight cost assigned.

 



 

10. Once the freight has been assigned, the purchase order can be saved and posted to make the purchase order available for receipt. If the approval process is implemented, the purchase order must be approved prior to being posted. Details related to approving purchase orders can be reviewed in Purchase Order Approval.