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Handling freight and surcharges on purchase orders for parts and exchange rates



Hi All,

I a bit new to all the accounting thing, but for my small company I have been a user of ledgerSMB 1.12 for the past year and for basic stuff I think I have set it up reasonably well with the chart of accounts and the templates. I have been able to get reasonably familiar with things like allocating expenses, issuing invoices and recording payments to these invoices, projects, time cards, AR transactions, AP transactions, etc.

However, I am still stumped at the workflow for purchase of parts and items. For example, when I issue a purchase order to a vendor, I order say N items of something on the purchase order. All OK. However this typically does not include any Shipping and Handling. Should it?  It is generally not known how much this is at time of order.

Then when the items are received, I go to the Ship->Receive find the purchase order and enter the Qty received.

However, from there I am lost. The receive Merchandise list is empty, and I would have expected an AP outstanding to be appear and the received items to appear as inventory but the do not?

I now recently found that via  Order Entry -> Report -> Purchase Orders, I can find the original purchase order and then can click on 'Vendor Invoice' after which a payment line appears below the purchase order. Doing a payment in here will now allocate the received items to the Inventory sub account. However, how do I account in this step for Shipping / Handling / Surcharges, etc? In the past, I bailed out here and I paid the invoice as an AP transaction, in which I could select all the required sub accounts to allocate cost and charges, but as I found, this does not setup the inventory account.

Then there is also the small issue of exchange rate. e.g. if I purchase something from an say an online vendor in USD, the purchase order is set to USD, but the final payment amount needs to be allocated to a Credit Card liability account in AUD (with a possible exchange surcharge). How do I put that in? Where is the exchange rate setup in LedgerSMB?

Like I said, I am new to the whole accounting of things, so I hope somebody can give me some pointers to solve my issue.

Kind regards,

Marco

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Marco Hess

Through IP Pty. Ltd. Through IP Pty. Ltd.
27 Rostrevor Avenue
Rostrevor SA 5073
AUSTRALIA
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Tel +61 407 78 55 66
Skype throughip
Fax +61 8 8121 6191
www.through-ip.com

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