First of all thanks for the excellent software. It is very easy to use and simple to understand the concept of accounting.
My question:
In the sales invoice I would like to add a separate shipping cost but this must be reduced from product selling cost(Currently it just adds to the total) But if I give 100% discount on shipping it will work as I want but will not add this amount to my shipping account( configured as liability account).
Please note shipping is free for my customers.
If you want to absorb 100% shipping cost, then continue using 100% discount method.
When you pay for shipping expenses to your supplier, just categorize those expenses into your shipping expenses account.
You mean, in the sales invoice when I enter shipping charges (expense account) and give 100% discount to my customers, the shipping charges will automatically be recorded?
But when I try, if any account with 100% discount is mentioned the system records it as zero in that particular account (for my case shipping expense account).
From accounting point of view, when you issue invoice to customer, you are not incurring any shipping expense. You are making a sale.
It’s only when you actually go and mail the goods to your customers, you get charged by post office or courier. You categorize such payment in accounting software as “Shipping charges”, that is when your expenses go up.
Since you are not passing shipping charges onto your customers (because you give them 100% discount on it), invoice is not going to affect your shipping charges expenses at all.
Perfect. It is now very clear how to do record the process.
Thank you very much Mr. Lubos, for your quick response even at your busy time. Appreciate the effort put by you and your team in providing us a beautiful and easy accounting package with excellent support.