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Level 1

Problem Encountered When Entering Vendor Freight Invoices For Landed Costs In QBD Enterprise Platinum V.21

I'm experiencing a problem when I enter vendor invoices for freight-in and customs & duty fees in conjunction with the Landed Costs feature in QBD Enterprise Platinum V.21. When I enter vendor bills for the freight-in and customs/duty fees into Accounts Payable, the debits for those invoices do not post to the Landed Cost general ledger account that I created. Also, the credits for those invoices are posting to the Inventory Offset liability account in the general ledger but should not since they were created as Other Charges Items; not Inventory Parts.

 

I used the following workflow: First I created Inventory Parts for our products in Lists and properly tagged them to a Cost Of Goods Sold account in our chart of accounts. Then I created the Landed Cost Account as an Other Current Asset as follows:  Edit/Preferences/Items & Inventory/Company Preferences/Advanced Inventory/Landed Costs/Create Landed Cost Account. Then I created several Items for air freight, trucking freight, customs fees, etc. as Other Charges (not Inventory Parts !) Items in Lists and mapped them to the Landed Cost account. Then I entered a vendor bill for the products that we purchased from the manufacturer. Note: We don't use PO's and we receive the items into inventory directly from the vendor bill. Then I entered several vendor bills from 2 different vendors for the air freight, trucking freight, and customs & duty fees with the items I selected mentioned above, with invoice dates that were the same or after the invoice date for the bill for the products we purchased. At this point those vendor invoices should post to the Landed Cost account as debits so that I can then perform the next step to allocate them to Inventory for the vendor invoice for the products, but they don't appear in the Landed Cost account. Also, they improperly appear as a credit in the Inventory Offset liability account.

1 Comment
Moderator

Problem Encountered When Entering Vendor Freight Invoices For Landed Costs In QBD Enterprise Platinum V.21

Hey there, Robert Hauffe.

 

To get this sorted out, you might want to verify the account used for your other charge items and ensure they're allocated to the Landed Cost Account.

 

Here's how:

 

  1. Click Lists at the top menu bar and choose Item List.
  2. Highlight the item, right-click and select Edit Item.
  3. Make sure the Account used is the Landed Cost.
  4. Hit OK.

Once done, I'd suggest deleting and recreating the bills to synchronize the update.

 

This should post to the Landed Cost Account as Debit.

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I'll be sharing with you the following pointers below. These will provide you steps on how to pay vendor bills as well as steps on how to calculate the landed cost in QuickBooks Desktop:

 

Landed cost FAQs.

Pay bills in QuickBooks Desktop.

 

I'm only a post away if I can be of additional assistance. I'm always here to keep helping. Wishing you a wonderful rest of the week.

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