If you need to include freight charges on a Billing and/or on Purchase Orders and you are starting from a Sales Order, you can exclude the freight line from the SO and add it to the billing/AP when those are created. However, if you want to include the freight line on the SO, here is a suggested approach:
Create freight (shipping&handling) as a non-inventory product that has Inventory Type = Purchased. This will enable you to include it on a Purchase Order.
Set the unit cost as $0.00 - This is a required field for products with inventory type = purchased, so you must put some value.
Set the GL accounts on the product record as follows:
- Revenue GL Account = 4100 - Freight Revenue (example)
- Expense GL Account = 5100 - Freight Expense (example)
- Inventory GL Account - The inventory GL account will not be used in any accounting transactions, but it is a required field and so some value should be entered. We recommend using the Vouchers Payable GL Account.
When you create the SO, include 1 line for freight, with the Quantity = 1 and the Unit Price = Total amount of freight to be charged to the customer.
Create the Billing from the SO and the SO freight line will flow thru to the Billing Line.
If there is just one PO (i.e., all lines on the SO are being ordered from the same vendor), when you create the PO, associate the freight line with that PO/vendor. When the PO is created, it will include a line for the freight. Edit that line so that Quantity = 1 and the Unit Price = Total amount of freight being charged by the vendor.
If there is more than one PO (i.e., lines on the SO are being ordered from different vendors) that will be created from the SO, then do not associate the freight line from the SO with any of the POs. Instead, once the POs are created, add a freight line to each of the POs, with Quantity = 1 and the Unit Price = Total amount of freight being charged by each vendor.