Is there a way to disable ‘Freight-in’ ?
I don’t manage inventory, but i need to add freight-in as an expense. Using the default one just sends it to a suspese account.
I’ve created a non inventory item to do it correctly, but want to make sure the built in one does not show up.
(I’d have preferred to make the default one an expense, but seems this isn’t possible).
The purpose of the built-in freight in feature is not to create and post expenses, but to allocate freight-in charges to the value of inventory assets. Read the relevant guides.
You say you’ve created a non-inventory item in order to do things correctly. But you are doing something entirely different. The built-in feature incorporates the freight in cost eventually into your cost of goods sold. Your approach keeps the expense separate on your profit and loss statement. Both approaches can be considered correct, depending on your accounting objectives.
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Yeah, I have it go directly into cost of Goods sold. So it’s trackable & is visible in reports.
I had a look at the guide and it didn’t help. The built in one needs to be editable & reviewable. I can’t set it to automatically have GST applied unless it’s auto added to every invoice via the invoice defaults (which is not useful, as not all invoices need it).
Basically, it doesn’t suit the purposes I need (and sounds like others too). So how can it be hidden / disabled? So when doing an invoice the default ‘Freight-in’ isn’t in the list.
In you first post you said “I don’t manage inventory”
In your second post you said “I have it go directly to cost of goods sold”
These contradict each other
If, by “it,” you mean freight costs, that is faulty accounting. Freight-in can only be posted to cost of goods sold after sale of the specific inventory items to which it applied.
That is not what form defaults are for, either.
You are new to the forum. I don’t know how long you used Manager before joining, but your comments so far indicate you do not understand the features you are complaining about. Perhaps you should ask about them before criticizing them.
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No they don’t.
Non inventory items. I don’t wory about stock amounts. Just total incoming and outgoing. Invoices don’t need to have specifc amounts recorded.
I was very clear at the start. I just wanted to know if / how to disable / hide the Freight-in option.
It is clear now you are misusing the program and disregarding basic accounting principles. You are, of course, free to do whatever you want with the software. But please don’t waste other forum members’ time asking for support. Manager is a serious tool. And forum members donate their time in good faith to help one another. Answers will assume you want to follow sound accounting practices. If you don’t, you are probably wasting your time trying to use the application, because it is designed to prevent accounting mistakes to the extent feasible.
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What does your business sell ?
As Tut pounted out, you may be violating accounting principles. This could give rise to tax and legal problems
Please note that @Tut and @Joe91 try to help you with how freight-in should be treated in accounting and how Manager helps to comply with this. You unfortunately are currently violating accounting principles as pointed out by both and therefore are advised to change your practice.
Please see https://www.accountingtools.com/articles/freight-in for simple explanation.
For a more practical and extensive explanation of freight-in and freight out see https://www.lojistic.com/blog/when-should-freight-costs-be-recorded-in-accounting which also includes common pitfalls such as:
Misclassification of Freight Costs : Mixing up freight-in (costs for shipping goods to your business) and freight-out (costs for shipping products to customers) can lead to skewed financial reports. Properly distinguishing between these two is crucial for accurate profit and loss statements.
Not Adhering to Accounting Principles : GAAP (Generally Accepted Accounting Principles) provides guidelines on how freight costs should be recorded. Neglecting these principles can have compliance repercussions and mislead stakeholders.
You can search the internet for many more but ALL have in common that freight-in costs are added to the value of the inventory. Also from: https://www.lojistic.com/blog/when-should-freight-costs-be-recorded-in-accounting)
- Freight-in Accounting Treatment: Such costs are capitalized, meaning they are added to the value of the inventory. When the inventory is sold, these costs are then recorded as part of the cost of goods sold (COGS), affecting the gross profit.
Normally there is no way.
Other users need this, if we don’t want it, the easiest way is don’t use it.
Thank you. If there’s no way thats fine, was just wanting to see if there was.