Expenses Related to a Customer Adding Onto COGS

I have recently started testing ERPNext for my business ops.

How do I record an expense directly related to a customer but not claimable/reimbursable; for example ‘Freight Out’ in case of Free Shipping. I tried Selling Taxes and Charges, but I am afraid it reflects in the invoice.

Will a normal JV of the expense reflect in Customer Wise Gross Profit Report ?

If a profitability analysis by customer is to be taken, the cost of freight out should be included, since this can sometimes result in a significant reduction in profits by customer.


I run a B2B trading company, where some customers have a contract with freight inclusive. I would like to understand customer-wise profitability.

It is first time I am posting onto this forum. I must say the product is good so far and I really appreciate your efforts in bringing up this.


Hello @Azhar_Umar,

We have a similar situation with retailers charging us back margins (rebates). We do it through the Taxes and Charges field, with a defined tax rule for the customer. There is a small tick box that allows you to include this charge in the basic price (i.e. it will not appear on the invoice and is accounted in COGS or any other defined account).

However, it works for us since ours is a rate based charge. I tried to run the transaction with an Actual cost, and it failed with an error stating that you cannot include an actual cost in the basic rate.

Please see screenshot


Yes, I found this method in other discussions, but an actual type cannot be specified in this. It is a problem in my case :D.