RIMAS NT/P Software Installation

To: All Users of RIMAS NT/P for Windows

From: The SHARED LOGIC Group, Inc.

Re: Freight Accounting Concepts

Date: March 28, 2000

RIMAS NT/P views the cost of freight from your perspective. If you will not be paying a freight bill, the system will not bother generating accounting entries for it. However, you will still have the option of tracking and reporting these costs.

Freight cost on every shipment is incurred by the shipper or recipient of the material, or by a third party such as a broker. This will be true even if there is no formal freight bill to be processed for freight costs.

The FOB code table in the System Manager module is used as the base of the interface between the Receiving and Shipping transactions. The ‘Receive Freight Bill’ flag indicates to the Freight module that a Freight Accrual record will be created in the Freight Plan table.

The Freight Accrual G/L account is located in the Company table in the System Manager module. The Freight Expense G/L Accounts are located in the Commodity Inventory Type codes table for the commodity code on the receiver or shipper, i.e. Freight-In for receivers and Freight-Out for shippers.

1. The first step in the process may be the entry of a sales or purchase contract. There is a Freight/BOL tab in Purchase Contracts and Sales Contacts for the freight rate, unit-of-measure, ship via, freight city, and FOB code.

2. There are five different shipment entry programs in RIMAS NT/P: Material Receiving, Scale Receiving, Service Invoicing, Brokerage, and Material Shipping. The programs in each of these modules also provide for the entry of freight rate, unit-of-measure and FOB code. These entries will all default to the values entered on corresponding contracts. If no contract is referenced, these entries may be entered manually.

3. These modules also contain posting programs, which will post your freight costs to the freight plan file in the freight accounting system. The data contained in the freight accounting system will provide you with an analysis of your transportation department costs by account serviced and by any equipment that was used to service the account.

4. The last step in the freight cost processing cycle is the receipt and entry of freight bills. A series of programs are provided in the freight accounting module which will receive the data from the freight bill, report the data and post the freight bill to accounts payable, creating an open item on the Aging to pay to the carrier at a later date.