Post Purchase Order Additional Charges to General Ledger (G30)

Purpose: Use this screen to define whether the system posts purchase order additional charges to a separate general ledger account number when you receive a purchase order and also whether the system writes a cost to the A/P Transaction table that does not include the additional charge amount.

Yes/No field: Select this field if you want the system to post purchase order additional charges to a separate general ledger account number when you receive a purchase order and also write a cost to the A/P Transaction table that does not include the additional charge amount; only the cost of the item at the time it was received.

When you receive a purchase order and this system control value is selected, the system posts any purchase order estimated additional charges, purchase order vendor item additional charges, and purchase order receipt control charges to a separate general ledger account number.

You can define the general ledger account number for each purchase order additional charge in the General ledger account number field in Work with Purchase Order Additional Charges. See Working With PO Additional Charges (WPAC).

In order to include additional charges in the receipt cost of an item, you can not use standard costing; instead you must define FIFO or AVERAGE in the Costing Method (A25) system control value.

The system does not include purchase order estimated charges in the receipt cost of an item unless the Include PO Estimated Charges in Receipt Cost Calculation (G29) system control value is selected or the P/O Receipt Costing Calculation Method (A57) system control value is set to W (weight).

In order for the system to write a cost to the A/P Transaction table that does not include the additional charge amount the Use Purchase Order/Drop Ship Matching (D21) system control value must be selected.

Example: An example of how the system posts purchase order additional charges to the general ledger with the Post Purchase Order Additional Charges to General Ledger system control value selected.

Purchase order detail line:
Item	A123
Cost of item	1.50
Quantity	10
Vendor item charges	1.00 (duty)
Estimated charges	.50 (freight)
	.25 (brokerage)

Step 1: General ledger posting including additional charges:

Debit	Credit
Inventory	Inventory Offset
32.50	32.50 (1.50 + 1.00 +.50 +.25) x 10 (17.50 = additional charge amount)

Step 2: General ledger postings for additional charges:

The system debits the inventory offset account that was originally credited at the time of receipt and credits the general ledger accounts for each additional charge associated with the purchase order.

Debit	Credit
Inventory Offset	Purchase Order Charges
17.50	10.00	Duty G/L number (1.00 x 10)
	5.00	Freight G/L number (.50 x 10)
	2.50	Brokerage G/L number (.25 x 10)

Leave this field unselected if you do not want the system to post purchase order additional charges to a separate general ledger number when you receive a purchase order. If this system control value is unselected, the system does not perform step 2 in the example.