freight charges unexpectedly added into a Build
We have Quickbooks Desktop Enterprise Solutions Manufacturing and Wholesale 22.0
I recently took a close look at some of my freight charges to make sure I fully understood how they worked because the summary numbers looked wrong (they were negative).
We have a COGS line item for "freight in" for the cost of shipping component parts to our company.
We set up an Other Charge Item called "freight" and it is set to default to Cost of Goods Sold: freight.in
Then when we issue a PO that has a shipping cost, that cost is reflected under Freight, and when the item is received, the freight costs go to Cost of Goods Sold: freight.in
My question has to do with an Other Charge for "freight" showing up in a Build, and then some random number showing up as a CREDIT to my "COGS: Freight in" account upon sale.
As an example, I have an Assembly which, when completed, is mapped to my Inventory: Finished Goods account. The Bill of Materials for that Assembly has four sub-assemblies and/or items on it. The Bill of Materials does NOT include freight.
When I go to Build that Assembly, it shows the four sub-assemblies and/or items for the BOM properly. It does NOT show freight as an item on the Build.
Later, after the Finished Goods have been sold, in reviewing the Freight in account, I see a CREDIT referencing that specific Build Assembly. When I open the completed and sold Build Assembly, it now has a Freight Entry in it that I did not put there. That Freight Entry has a value that I have no idea where it came from.
I do not understand why this happened or where the value of the Freight amount credited came from.
Looked at from a global basis, when items are purchased, and their Freight Costs go into COGS, they should stay there. I see no basis for why the sale of an item should result in a Credit to this account.
Any insights?