what is see in the grand total is $ 200 short, noting line no 4 is Freight in
is this a bugs or I’m doing any thing wrong
First, line 4 is not freight-in. That requires selection of the freight-in item.
Second, why do you think the total is wrong?
You are doing things wrong
The total of the invoice is 3,203.93 or at least on my calculator, it is
What are “Admin charges” and why is there a +200 and a -200?
Total with admin charges $3403.93
product cost: 3,203.93
Admin Charges: 200
admin charges we can’t charge our buyers and its mast be distributed in the inventory items
Could you clarify further please
Let’s go back to the beginning. What kind of transaction is this? You did not say.
Next, administrative charges cannot be an inventory item. So you should undo that.
Finally, the completed transaction reflects exactly what you entered. So I repeat my earlier question. What do you think is wrong? And why?
Ignore what i said earlier
This 200 administrative charges is conditional for purchase invoice under 10K apply by same suppliers in the UAE and its fix rate. Since we can't not charge our buyers this **administrative charges** How should we recover it on the sale invoice. for accounting purposes 200 should be in the summary page under Cost of Goods Sold
you advise highly appreciated
The situation is still not clear. Is it illegal to charge a customer for this, or do you simply not want to show it? If illegal, leave it off. If you do not want to show it, increase your prices.
Or are you trying to recover a cost your suppliers have charged you? If so, again, raise your prices.
The only reason such charges would be included in the cost of goods is if you paid them to the supplier.
we not supposed to show it and its legal, expense such as shipping, transport, custom duties, labors, bank fee or admin charges which can be called sometimes paperworks.
Those costs should in distributed in the inventory items
Sharing snap shot of how the purchase invoice look likes.
I am sorry, @ishtiaq.omer, but your are not making things clearer. You said, “Ignore what i said earlier.” What are we supposed to ignore? Many of the things you wrote previously you repeated. And you have not answered important questions. (Every question I ask is important, because the answer helps confirm or eliminate possibilities.)
Also, please show the entire Edit screen of transactions. Obscure proprietary information if necessary. But on the partial screen shots you show, it is impossible to tell what transaction type you are displaying. And important information is left off.
Finally, since some of your confusion seems related to freight-in charges, make sure you read and understand this Guide before going any further: https://www.manager.io/guides/9610.
@ishtiaq.omer, you just need to remove the last line (5th line), then your 4 lines will exactly match the Purchase Invoice which you displayed and the totals will also match. Using the Freight-in (4th line) will re-distribute those admin charges over the Inventory Items.
When you use Freight-in, this will increase the Purchase Invoices Average Cost for the Inventory Items.
Note how the Purchase Invoice’s Unit Price (item 1 - 99.79) has changed to 106.02 when it becomes Average Cost after posting, yet the total Inventory value still equals the Purchase Invoice
Therefore, every time you sell that item you will recover part of the admin charge (106.02 - 99.79).
Once all the items are sold, then you have recovered the whole 200.
Yes it will be, after the items have been sold. You can’t have the same 200 as both Freight-in and Cost of Goods Sold. It’s either one or the other.
You make my life easier by posting a such details
Will follow you given instructions and let you know how gose
Brucanna provided with details explanation
Will do accordingly
what if we make 2 purchase invoices
1- Inv 1with line 4 fright in $200 and line 5 Admin Charges - $200
2- Inv 2 with only admin charges $200 under cost of good sold
is this will help to have the amount $200 in the summary page
sharing snap shot form manager guide
You would only do as per the Northwind example if the Admin Charges are being posted via a separate Purchase Invoice from that of the Inventory Items Purchase Invoice from the Supplier.
Invoice 1 from the Supplier
Invoice 2 from the Courier
In this case, Invoice 2 gets posted to a Freight Clearing account NOT a Cost of Goods Sold account.
Invoice 1, cancels (zeros) out the Freight Clearing account via the negative line entry and transfers the Courier cost to the Inventory Items via the Freight-in.
If the admin charges are part of the same Purchase Invoice as the Inventory Items, then the Freight Clearing account is NOT used. You can only allocate the admin charges to one place - either to the Inventory Items (via Freight-in) or directly to the Cost of Goods Sold account - NOT BOTH.
As previously mentioned, the admin charges allocated to the Inventory Items, will end up in the Cost of Goods Sold as the Inventory Items are sold. If you want the admin charges to go to the Cost of Goods Sold as a lump sum, then don’t use Freight-in.