Background
This support articles covers how Freight works in AccountEdge - specifically addressing how it works with Purchases and the steps you need to take to include Freight as a part of an items' cost.
Freight and AccountEdge
When you create a purchase or a sale in AccountEdge there is a field on the bill/invoice to include the cost of Freight. This cost is for the entire bill/invoice and not tied to any specific item or line item.
To use the Freight field on sales and purchases you need to first set this option up. You can start using Freight by following these steps:
Sales
Go to Setup from the menu bar at the top of the screen
Choose Linked Accounts > Sales Accounts
Check the box next to "I charge freight on sales"
Select an appropriate Income account to post your freight charges to
Hit okay
Purchases
Go to Setup from the menu bar at the top of the screen
Choose Linked Accounts > Purchases Accounts
Check the box next to "I pay freight on purchases"
Select an appropriate Expense or Cost of Sales account to post your freight charges to
Hit okay
Including Freight Costs in Your Item's Cost of Sales
Because AccountEdge's Freight charges are associated with an entire transaction and not a specific item then any items you have will not include the Freight in their Cost of Sales. There are two options for how to manage this.
Option 1
Initial Setup
Create an Item called Freight
This item should be set as I Buy, I Inventory - choose appropriate Asset and Cost of Sales accounts for this
Including Freight on Purchase
Enter your purchased line items as normal
Include the Freight line item - billing however many Freight items would equal the total number of the items
Enter the total for the cost of freight in the line
Don't include Freight in the Freight field of the bill
Including Freight Charge in Cost of Sales
Go to Inventory > Build Items
You are going to add and subtract the same item - but add the item back with the cost of the freight
You are also going to be subtracting the Freight - building it into the cost of the items
Example: Item A: I have 15. I multiply the unit cost of Freight ($.80) by 15 to get $12.00. I then add this to the current total for Item A (the positive $150.00) to get a total of $162.00. So I'm subtracting 15 of Item A at a total cost of $150.00 and adding it back in with a total cost $162.00.
Option 2
Initial Setup
Go to Setup from the menu bar at the top of the screen
Choose Linked Accounts > Purchases Accounts
Check the box next to "I pay freight on purchases"
Select an appropriate Expense account to post your freight charge to (normally an account call Freight)
Hit okay
Including Freight on Purchase
Enter the purchase line items as normal
Include the Freight in the Freight field of the bill
Adding the Cost to the Item (increasing the value of the item)
Go to Inventory > Adjust Inventory
Enter in the item number you wish to add freight to
Leave the quantity at zero
Add the total cost of freight in the amount field
Select the Asset account that the item uses as the account (you can see this by clicking on the arrow next to the item)
Click record
Increasing the Asset account's value (this will remove the cost from the Freight account and add it to the value of the item - increasing the COGs for that item)
Go to Accounts > Record Journal Entry
Choose to debit that Inventory Asset account for the item used by the amount of the Freight
Choose to credit the Linked Freight Expense account for the amount of the Freight