Landed Costs / Add Freight Cost to Inventory Item Cost To Reflect In COGS Account

Enhancement Voting Large New Roadmap Sized Items
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Name of Feature/Request: Add Freight Cost to Inventory Item Cost To Reflect In COGS Account

What financial, time savings, or quality of life improvements will occur from this: A way to allocate inventory freight in charges to all of the items on a Purchase Order/Bill so that they hit the COGS account when the item is sold.

Frequency: Every time customer creates a PO with Freight Costs | Let’s say we purchase a shirt for $10 and there is a $1 freight charge on the vendor invoice. We then add that to our PO and our bill as an item called Inventory Freight for $1. So the $10 for the shirt and the $1 for the freight both go into our Inventory account. When we sell the shirt for $20 only $10 goes to the Cost of Goods account when it should be $11 because the freight is part of the cost of the good. Plus the freight charge just keeps hanging out in the inventory account because it’s never actually “Sold”.

Attempted Solutions So Far: None Listed

Digging deep - Any additional Why behind this request / How was this accomplished before Striven in what system or software: Is there a way to allocate inventory freight in charges to all of the items on a PO so that they hit the COGS account when the item is sole? For manufactured items we add the freight to the build but for other items the freight charge just stays in the inventory account.

StrivenID: 4646930

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We would like to see a real ‘landed cost’ or ‘standard cost’ system in place. For this single issue, however, don’t put the freight on the PO. When the bill arrives, add it as an expense, but have a separate freight account that is a COGS account, and a freight account for freight billed to a customer under your Income accounts. This makes your reporting accurate and closer to automatic.