Reconcile Freight and Additional Charges

Reconcile estimated cost to actual cost for freight and additional charges, optionally creating an A/P Bill.

Reconcile Freight/Additional Charges

If Estimated Charges were entered during the purchasing process, this utility is helpful for reconciling the estimated add-on charges with the actual charges. This can by found by going to A/P / Reconcile Freight/Additional Charges.

This utility was designed to reconcile estimated freight and accrued add-on charge amounts entered in the Inventory area. Select the checkbox in the first column of line items to be reconciled/edited.

• Estimated Freight Vendor – Select the freight or add-on charge vendor to be reconciled. The charges display and may be filtered by selecting one of the filter options and choosing Apply found in the Filter area.
• Actual $ – Enter the actual amount of the bill in the Actual $ column.
• Post AP Bill – If an A/P Bill is needed, check the Post AP bill checkbox which displays the Post A/P Bill for freight amount information.
  • Post A/P Bill for freight amount – Complete the information from the A/P Bill. The Bill Date, Due Date, and Invoice # are required fields. Selecting Apply displays the General Ledger Account from the estimation and the dollar amount from the actual amount in the grid. If one or more additional G/L accounts are required for this A/P Bill, double-click on the G/L column heading of the grid for additional lines. The On Hold option creates the A/P bill and makes the journal entries but hides the A/P Bill at the Pay Bills window. To pay the Bill, open it at Accounting / A/P / Add/Edit Bills and uncheck the On Hold option. Choose Post to post the items to the general ledger and the A/P Bills.
    Note: Be cautious in changing the GL account number listed in the Post AP Bill for freight Amount section. The number is automatically populated as indicated below:
    • If reconciling estimated freight, it populates from the Estimated Freight account number at Accounting / Setup / Locations on the G/L Posting tab.
    • If reconciling add-on charges, it populates from the G/L Account number at the Edit a Purchase Add-on Charge window at Accounting / Setup / Inventory / Purchase Add-On Charges. If no G/L account is indicated, it populates from the same area as estimated freight.
    • Journal Entries for the difference between estimated and actual costs are automatically made to the account listed above and the G/L account listed as the Freight/Add On # at Accounting / Setup / Inventory Departments on the G/L Posting tab.
• Select All – This selects all charges showing in the grid. Line items can be selected individually with the checkbox in the first column.
• Set Act to Est – Quickly set the Actual $ column to be the same dollar amount as the Estimated $ column. After using this, edits can be made to the Actual $ amount as necessary.
• Filter – The grid is populated based on the criteria selected in the Filter section of the Reconcile Freight/Additional Charges window. Select Apply after changing the criteria.
• Post All – Choose this to select the Post A/P Bill column for all the estimated charges showing in the grid.
• Print – This will print the grid.
• Post – Selecting this will post the Journal Entry for the difference between the estimated and actual amounts for all selected entries and optionally the A/P Bills.

Posting Notes

If the option to Post an A/P Bill was used, the posting of the bill is identical to the posting that occurs when an A/P Bill is manually added.

Note: Freight/Additional Charges can be re-reconciled after a Bill has been posted if needed. To do this, select the Vendor and filter for Posted. Select the line item in the grid needing re-reconciled. Enter the correct Actual $ in the grid, and select Post. A Journal Entry will be made for the difference for the Freight/Add-On account from the Inventory Department and the Estimated Freight Account (for the Location) or the accrual account. The original AP Bill can then be voided and a new Bill entered at A/P / Add/Edit Bills as a new Bill cannot be posted for the same line on the Reconcile window.

• General Ledger – A Vendor-Type Journal Entry is made to move the amount from the Estimated General Ledger Account to the Actual account. If there is a difference in the Actual $ compared to the Estimated $, the difference is handled with a Journal Entry.

Troubleshooting

If Estimated Freight was added to a Purchase Receipt/Purchase Invoice but the Actual Freight on the bill is different than what was entered, the Reconcile Freight/Additional Charges utility DOES correct the GL when the Bill is created.

However, the cost of the individual Product will be skewed if there is a large variance. This cost will not be adjusted upon reconciling Freight. To adjust, void the Purchase Receipt and Purchase Invoice (if a PI was added), then re-enter with the correct freight cost.

Once the PR/PI are re-entered, the reconciliation can be completed and the AP Bill posted.