Purchase Order Freight Charge adds up to Creditors/suppliers

I have a Supplier to whom i have placed a order of 1000. In my “Purchase taxes and Charges” template i added 20% commission(CommisionToSupplier AccountHead) to supplier and 400/- flat Freight charge(Freight and Forwarding AccountHead).
Total 1600 = 1000(product) + 200(commision) + 400(Freight)

When executing Purchase invoice, i see below.

When i make payment from Cash Account. I see below

How do i change my invoice/order/payment such that only 1000(product)+200(commision) goes to Creditors account, but not the 400 freight charges. I will be paying this 400 freight charges to some Freight agent. This is the expense i incurred on the order, which i pay to a freight agent.

Should i remove freight charges from order, and create a separate journal entry or payment ? If so how to associate this payment with the invoice. Or is there a better way.

Because at the end of the month when i see how much purchase i have made, i dont want freight charges added in the total purchase transaction amount i have made with this supplier.

Pls let me know.

You can create a Landed cost voucher for this.
Please refer the link below to learn more on the same.

Hope this helps.

Thank you will try it out.
Can i use the same, while selling.
In my case, my company will take care of shipping as Freight expense to a Freight agent. The customer doesnt pay it.

Hi Arundhathi,
I have read the article on landed cost. Seems like it is for adding more expenses after the pur rct has been submitted. But in my case i know the exact transport amount at the time of purchase recipt.
But while reading the article i saw that if we set the tranport cost as “valuation” instead of “total + valuation”, it will not be charged to the supplier. I tried this and the amount does not get charged to supplier.
Half of my problem is solved using this “valuation” . But my problem is that the cash for transport did not get moved from Cash account even after payment was made.

Total 1600/- purchase receipt = 1250(supplies) + 350(transport, marked as valuation, should go to Freight account)

After purchase Invoice Reciept

After purchase invoice

After Payment Entry

Finally i was expecting that 1600 total should be deducted from my Cash Account. Out of which 1250 should go to Creditors account (looks good) , and 350 should go to Freight account. But cash account was only decreased by 1250.

How can the 350 also be reduced from cash account. As i have made the payment to Transport agent for 350.

So there are 2 parts, what you bill to the customer will come in your sales invoice. What your transporter bills you will be another purchase invoice / journal entry.

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Thank you for the solution.