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Freight inwards on PO and GRPO

Former Member
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We have set up the Freight section and ticked the "Stock/Fixed Assets" box for the "Transport Inwards" freight option

When we complete a PO with Freight charges on and convert to a GRPO, stock is correctly incremented by the cost of the goods and the freight.  The credit for the Goods correctly goes to our allocation account "Goods Received Not Invoiced" but the credit for the expected freight invoice goes to "Variance Account"  Please can you advise where in the GL determinations the GL account for the freight element is defined?

Many thanks

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Answers (3)

Answers (3)

Former Member
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Hi Robert,

Make this setup in Test System and Try it.

1. Create a new Freight Master.

2. Select Distribution Method as "Quantity"

3. Check the "STOCK" check box.

4. If, GL setup by Warehouse then, go to approx warehouse and set

Expenses Clearing Account - "clearing acc"( this account will be zero after invoice posted. same like

Allocation acc)

5. Book a GRPO with freight.-see Audit report to confirm Freight amount added with item cost.

6. Book A/P invoice.

Acc posting.


Inv acc                                        Debit

Allocation Acc                                               Credit

Expenses Clearing Account                            Credit

AP Invoice:

Vendor                                                           Credit

Allocation Acc                             Debit                        (net 0)

Expenses Clearing Account          Debit                        (net 0)

Former Member
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Goto Administration>Setup>General>Freight

1) The Freight menu Item is available only ig the Manage Freight in Documents checkbox is selected in the Document Settings window.

2) You may define a unique revenue and expense account for each Freight type or share revenue and expense accounts for all Freight types you define.

3) On sales document, the revenue account is used to book a separate revenue amount whenever there is a freight amount on the line or document.

4) Likewise for purchasing documents, the associated expense account is debited where there are Freight amounts on the line or document level.

With Brgds


Active Contributor
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I think this is called "Expense Clearing" in the account determination