Vendor discounts – freight & shipping

  • Vendor discounts – freight & shipping

    Posted by DSC Communities on December 12, 2016 at 9:23 am
    • Kelly Lee

      Member

      December 12, 2016 at 9:23 AM

      We are getting ready to implement the AP discount functionality within GP.  We are using our test environment to go through various scenarios and are discovering more questions than answers.  For those of you using this functionality in GP, how do you handle freight and shipping from an account coding standpoint since the discounts do not apply to either of these.

      In the past, we have just wrapped up the freight and shipping charges as part of the overall expense.  We have not separated the two.  

      How do you use GP to process discounts available on invoices?

      Also, are there any reporting issues that you have encountered?

      Thanks much!

      ——————————
      Kelly Lee
      Epic Systems Corporation
      Verona WI
      ——————————

    • Shari Bruno

      Member

      December 12, 2016 at 10:40 AM

      Hi Kelly,

      We have a Freight GL code that we book freight expenses in.  If the vendor has discounted payment terms the freight amount is keyed into the “freight” field on whatever entry screen us being used (shipment, enter/match, or payables transaction entry.)  This way it does not get discounted.

      We process discounts through payment terms, and have a GL account code that the discounts are expensed into, that is also defaulted onto all our vendor cards.  We don’t take the discounts until payment is made. 

      We have not experienced any issues with reporting.  Separating freight and discounts into individual GL codes makes reporting easier when it comes to breaking out those costs from the cost of the items purchased.

      ——————————
      Shari Bruno
      Accounts Payable Specialist
      Bible League International
      Crete, IL
      ————————————————————————-

    DSC Communities replied 7 years, 6 months ago 1 Member · 0 Replies
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