Adjusting Freight Amounts in Goods Receipts PO Based on A/P Reserve Invoices

When creating a goods receipt PO (GRPO) based on A/P reserve invoices, you can adjust the freight amounts in the Freight Charges window. The prerequisite for adjustment is that each freight row (each freight item of a base document takes up one row in the Freight Charges window) does not exceed the unallocated freight charge.

In a perpetual inventory system, the following adjustments trigger discrepancies in stock value. The discrepancies are posted to the price difference account:

A row is partly copied to the GRPO and the freight distributed to the row exceeds that in the base invoice.
All remaining open quantity of a row is copied to the GRPO and the newly distributed freight is different from the original distribution.
The total freight in the GRPO is lower than those in the base invoice.

We provide some simple examples to illustrate the cases above respectively. All freight items in the examples affect stock value. The base A/P reserve invoice contains the following data:

Row Number	Quantity	Value	Distributed Freight
1	5	500	20
2	10	1000	35

Example 1

Copy the base invoice to a GRPO, partly copy the first row, and make adjustment as follows:

Row Number (Base)	Quantity	Value	Distributed Freight
1	4	USD 400	25

Posting

Account	Debit	Credit
Stock in transit account		USD 420
Inventory account	USD 425
Price difference account		USD 5

Example 2

Copy the base invoice to a GRPO, fully copy the first row, and make adjustment as follows:

Row Number (Base)	Quantity	Value	Distributed Freight
1	5	USD 500	15

Posting

Account	Debit	Credit
Stock in transit account		USD 520
Inventory account	USD 515
Price difference account	USD 5

Example 3

Fully copy the base invoice to a GRPO and make adjustment as follows:

Row Number (Base)	Quantity	Value	Total Freight
1	5	USD 500	50
2	10	USD 1000	50

Posting

Account	Debit	Credit
Stock in transit account		USD 1555
Inventory account	USD 1550
Price difference account	USD 5