My understanding is, this field must be automatically fetched from Purchase Order/Invoice/receipt. But it is not. Question 1: Should I manually enter transportation costs and unloading charges again ? Question 2: Where and how do I make payment entry for transportation and unloading charges ? Do I have to create a new purchase invoice manually for payment to XYZ Transportation Pvt. Ltd. ? But then, I’d have to create an ITEM called “Freight Cost” as service item which seems quite not right to do. Also, for labor costs I’d have to create an item called “Unloading Charges” as service.
As you already added charges at the time of PO, you don’t need to book LCV. At the time of reception Your Inventory will be be debited with Rs.610/Bag and Goods received but Invoice not received a account Credited with RS.510/ Bag. Same time Rs. 110/Bag will be credited in Valuation Included Cost Account. When you receive actual bill of Transportation and Labour you need to book normal service Invoice debiting the Valuation Included in the Cost Account.
LCV will be useful at the time when transportation and unloading charges are not known at the time of placing PO. In this case you can book the Landed Cost Voucher after reception based on actual charge or provisional charge to value your inventory at correct rate.
I will receive transportation bill at the time of delivery. I will not receive any bill for labor charge.
How do I create a invoice for transportation ? How to I make such entry for transportation and labor ?
Is it like this ?
and create a normal purchase invoice with these items ?
Hmm. that’s interesting. But I was hoping there was some proper way. It feels this is not the right way to handle this. What do you think ?
It would be better if we were allowed to create another Purchase Invoice from the same PO and pull the expenses and record it as a new entry against XYZ Transportations. Also, I will now have to create a new vendor/supplier for each labor who does the unloading works. Imagine the trouble if I have multiple consignments in a day and 10 - 20 labors to track/pay and book the expense in separate accounts.
If you don’t want to book the supplier Invoice you can pass the journals also like Debit expenses included in valuation and Credit your Cash account. In this ways you can easily handle the cash payments to labours and solve the accounting issue also.