Purchase expenses (LANDED COST) are borne by the buyer and paid in cash. How do I deal?

[ali93]

HELLO EVERYONE  I wish you a nice day ..

I have this scenario how to do it inside SAP B1  If you use freight, the supplier’s balance will become (the value of the goods + the shipping value). Correct? Sometimes when purchasing goods, I am the one who pays the shipping costs in cash ( for example, to the driver who brings the materials. How do I deal?) (the supplier’s account is not affected. His balance remains only the value of the goods).So I think it is more correct to use LANDED COST . It is assumed that I have two accounts affected in addition to the inventory account, which are (the transportation expense account and the cash account). How do I handle this scenario and apply it in SAP B1?

let us take an example that I applied in SAP B1, which is that I created a GRPO document with a value of 150,000, so the journal entry was like this:

Dr:inventory ACC

Cr. GRNI ACC

NOW I bears the transportation cost for these goods, and I paid them directly in cash. The transportation expenses were 10,000. The journal entry appeared like this when creating a landing cost document:

Dr:inventory ACC

Cr:Transportation Expenses ACC

In this case, firstly, the cash accounts did not move with a value of 10,000, and also in the expenses account a credit appeared. Isn’t a Debited supposed to appear and the cash accounts move? I'm sure there's a mistake I made, but I don't know where. If so, can you explain how to handle this scenario within SAP B1? Thank you

[SonTran]

Hi,

Landed cost is used to allocate third party expenses during purchasing. Then you need to use another transaction to offset the account in credit side in Landed Cost.

Standard process:

1. Landed Cost: Debit Inventory / Credit Allocation account

2. AP invoice service: Debit Allocation account / Credit Vendor

3. Outgoing payment: Debit Vendor / Credit cash or bank transfer

In your case, I recommend to use

1. Landed Cost: Debit Inventory / Credit Allocation account

2. Outgoing payment with Account option: Debit Allocation / Credit cash

Hope this helps,

Son Tran

[ali93]

@SonTran Hello and Good Day >>Thank you for your response.. but when I make 2. Outgoing payment with Account option: Debit Allocation / Credit cash Here, close the allocation account. Its balance becomes zero.. According to my knowledge, isn’t the account for the purchase expenses that I pay supposed to be in the expense drawer, drawer 5 or 6, and this account is in the expense drawer as a debit?

[SonTran]

If you buy a service, you can book it to Expenses Account. But in this case, the service from third parties during purchasing should be allocate to goods. The account for landed cost will be clearing account and we often use liabilities account for this purpose. You can ask for your company account.

[ali93]

Does anyone have an idea?