RIMAS NT/P
Software Installation
To: All Users of RIMAS NT/P for Windows
From: The SHARED LOGIC Group, Inc.
Re: Freight Methods
Date: September 7, 2001
Text Freight Methods
There are four methods that you can use for freight
accounting. How you enter the codes
depends on how you want the freight to calculate and perform throughout RIMAS
NT/P. But, before these methods are
explained there are some programs that should be discussed as part of setting
up codes to work with Freight Accounting.
FOB Codes Maintenance
Ship Via Codes Maintenance
C/I Type Codes Maintenance
FOB
Codes Maintenance
You will need to begin with the FOB Codes Maintenance
program in System Manager. This is the
basis of the whole freight system.
In the FOB Codes Maintenance
program there are four boxes to indicate how freight will work in the system.
Some of the codes that you might want to set up in
Freight Codes Maintenance are:
PPD Prepaid
DP Delivered Purchase (Vendor pays freight)
DS Delivered
Sale (You pay freight)
Receive
Freight Bill This option indicates that a Freight Accrual record is to be created
in the Freight Accounting Freight Plan tables.
This record will be used to pay the Freight Bill when it is received
from the Carrier.
Bill
Back (Adjustment Code) This option will cause the Receiver and Shipper
Entry programs to create an Adjustment detail line for the amount of the
Freight Cost. On a Purchase, the amount
will be negative if the FOB also has the Receive Freight Bill option checked,
if not the amount will be positive. On
a Sale, the amount will be positive if the FOB also has the Receive Freight
Bill option checked, if not the amount will be negative. The Adjustment Code is used as the
Adjustment Code on the Adjustment detail line that is created.
Add
Freight Cost to Inventory This option is used only in the Purchase
modules. It indicates to the posting
program that the Freight Cost is to increase the On-Hand Value of the Commodity
being purchased. Debiting the Purchase
G/L Account instead of the Freight In G/L Account associated with each
Commodity Type.
Price Includes Freight This option is used only in the Sales
modules. It indicates to the posting
program that the Freight Cost is included in the Commodity price. A Debit to the Sales G/L Account and a
Credit to the Freight Out G/L Account will be created on the G/L Distribution
of the A/R Transaction for the Freight Cost amount
Ship
Via Codes Maintenance
The Ship Via Codes Maintenance program is also important to
working with freight. This program
describes how the shipments get to their destination. Fill in the Ship Via Code and a description for the code.
Company
Maintenance
The Company Maintenance program in the System Manager
module is also important to working with freight. The G/L Freight Accrual Account code must be setup in the Chart
of Accounts program in General Ledger prior to setting up the Default tab in
Company Maintenance. Then the Freight
Accrual code can be entered.
C/I
Type Codes Maintenance
The Add Freight Cost to Inventory option in
FOB Codes works only in conjunction with Purchases. When using this you will also need to have the Receive Freight
Bill box checked. You will also
need to make account entries in C/I Type Codes Maintenance.
Instead of debiting the freight expense on C/I
Freight in G/L, it debits the Purchase G/L and adds the freight dollar amount
to the On-Hand value in Inventory.
Formula: Inventory
+ Freight = Inventory
On-Hand
$10,000 $1,000 = $11,000
Next are four different ways that you can setup your
freight to reflect your business practices.
Use method 2 and 3 only if you have a dedicated freight coordinator.
Method
1
The
first method is probably the easiest method of the four. An FOB code is created with Bill Back
or Receive Freight Bill.
Example:
For a Purchase ( Purchase, Pickup)
For a Sale (Sale, Collect, Delivered)
You need to have an FOB Code, Freight Rate and
Carrier established on the Shipping tab.
When using a Carrier, the Vehicle should be filled in also to correctly
identify the transaction. This
generates the Freight accrual.
Freight Rate x
Receiver Net on Commodity = Total Freight
When
using this method, the posting programs will fill in the Plan Control # which
will automatically create the Freight accrual when posted.
Method
2 Use with a Freight Coordinator
Use this method if you know that you will be
receiving multiple bills. In Freight Accounting
setup Freight Plan Entry. The freight
coordinator will need to setup deliveries, drivers, schedules, etc. The coordinator will need to know
information in order to complete the screen below: If the entry is a Purchase or Sale, the account number, contract
number and the haul date.
Detail
Tab
In
the Detail tab of the record, a sequence will need to be created for each
freight bill or for every leg of the trip.
The fields that require entry are Carrier, FOB and Freight
Rate.
Click
on the Plan Control # dropdown list on the Shipping tab in either the Receiving
or Shipping programs to ensure that you select the correct freight information
for your record.
Method
3 Use with a Freight Coordinator
Another way to use the Freight Accounting system is to
create a freight rate database, which is probably one of the more difficult
methods. This would entail creating
codes in the Freight Accounting programs: Freight City, Freight Rate and
Freight Plan. Codes would also need to
be created in Ship Via in System Manager.
Freight
City Maintenance
Freight Rate Maintenance
When the City Code, Ship Via and Carrier codes are
setup, they will point to the Freight Rate.
Freight
Plan Entry
When using Freight Plan Entry the following fields are key: Source,
Account, Contract, and Haul Date.
These do not need to be entered first but will be generated by the
Shipping tab in Material Receiving and Material Shipping. (If the FOB code contains Receive Freight
Bill, then a valid carrier and freight rate are entered.
If the freight information is entered in Freight Plan Entry
first, then user can select the Freight Plan on the Shipping tab and the
information will default.
NOTE: The Detail tab can be skipped and you can go directly to the Rate
Query tab. On the Rate Query tab, type
in a valid City Code and Ship Via and you will receive all the
rates by clicking on Get Rates. Click
on Create Detail and you will be returned to the Detail tab.
Rate
Query
The
Rate Query tab allows the user to search the Freight Rate table. Once records are found and displayed in the grid,
the user may double click the grid line to create a detail record or highlight
it and select Create Detail.
Method
4
Create Freight Codes and Freight Rates. Instead of using the Freight Plan Entry
program, enter the FOB, Ship Via, Carrier and City Codes on the Purchase
Contract Freight/BOL tab. Everything
needs to be entered except Dead Freight.
Click on the Freight Rate button to get the
corresponding rate from the Freight Rate Query screen. Next find the record on the Freight Rate
Query screen and click on it. The
information will automatically fill in the fields on the Freight/BOL tab and
subsequently create a Freight Plan.
When using the Material Receiving program, these
entries will carry through to the contract.
At the
time of posting, the Plan Control # will be generated.
Freight
Bill Entry
After entering information in Freight Plan Entry,
you will next need to work with the Freight Bill Entry to select the record for
payment. The Freight Bill entry task is
used to record Freight Bill data on Freight Plan detail records. Freight bills can only be processed for
previously entered freight detail with a FOB code indicating that a Freight
Bill will be received.
The information on this screen will fill in only after
you have gone to the Plan Query tab to generate it.
Plan
Query Tab
The
Plan Query Tab is used to display Freight Plan detail records matching the
criteria entered for the purpose of entering a Freight Bill. Enter the Carrier, Vehicle, and From/Thru
Dates. Then use the Run Query tab
to view all records that match the selections.
These will appear in a grid.
Click
on the Enter Bill to have the
freight information enter the system as a payable. The Freight Bill tab will reappear with information filled in
from the query that was run on the Plan Query tab.
The
information that is entered here and posted will show in the A/P module.
