The Distribute Shipping Update Parameter spreads the Shipping cost of the Purchase Transaction over the Average Cost and/or Last Cost of each item included on the transaction. This is sometimes referred to as the landed cost and represents a more accurate actual cost of an item.
When a Purchase Invoice is created, the current Distribute Shipping parameter settings affect the cost of the items on the transaction. Once a Purchase Invoice is saved, these settings cannot be changed for that particular Invoice. Changing the Distribute Shipping parameter settings after a Purchase Invoice has been saved will affect only subsequent Purchase Invoices.
The Distribute Shipping Update Parameter methods:
None - the Shipping Cost is not included when calculating the Average Cost or Last Cost.
Quantity - the Shipping Cost is distributed based on the number of units ordered.
Weight - the Shipping Cost is distributed based on the total weight of the units ordered.
Cost - the Shipping Cost is distributed based on the total cost of the units ordered.
Update Parameters that affect the Distribute Shipping Update Parameter:
- If Update Average Cost is ON, the Shipping Cost is distributed to each item's Average Cost.
- If Last Cost = Dist Cost is ON, the Shipping Cost is distributed to each item's Last Cost.
- If Vendor Cost = Dist Cost is ON, the Shipping Cost is distributed to the current Vendor's cost for each item.
- These three Update Parameters may be enabled individually, or in any combination of enabled/disabled.
Note: Please consult an accountant before using the Distribute Shipping options. These options are useful in figuring the actual cost of buying an item, but may produce an inaccurate calculation of the true cost of the item by itself. If enabling Distribute Shipping, post the shipping to the same accounts payable account to which the item costs are posted.
To distribute Shipping Costs on Purchase Transactions:
- Select Parameters from the Transaction menu.
- Select Update from the list of Parameter types.
- Select the Distribute Shipping button on the Update Parameters screen.
- Select the appropriate method of distribution from the list.
- Keystroke will now distribute Shipping Costs using the selected method.
Purchase Manager - Parameters - Update - Distribute Shipping
Purchase Manager - Parameters - Update
Purchase Manager - Parameters
Purchase Manager Contents