I think I know PO pretty well, but for this one I need help.

A client buys stock and non-stock items, both of which they sell via OrderEntry (they also buy sundry items for office use, but that is not applicable here). Non-stock items are one-time inventory items; there is no need to track quantities.

They often place a mixture on one PO. When they add a misc charge such as freight to a PO, they want to allocate the freight pro-rata by value to the various items, but they want the portion that is allocated to the non-stock items to go to a specific Ledger account (freight).

Can this be done automatically? I can think of a convoluted way. For example, if the non-stock items make up 25% of the value, I can make the freight charge 75% pro-rated, and then manually assign this 75% to the stock items.

Thanks

Steve

OK, I did some more thinking and I thought of three different ways to handle this, none of them are particularly elegant, but here's my first choice.

Let's use this example - there are four details on the PO, three stock details and one non-stock detail. Each has a value of $25 - so the total PO value is $100.

The freight will be $10 - we want the portion relating to the non-stock item to go to Freight Expense, and the rest to get pro-rated to Inventory.

There is no avoiding the pain of first having to calculate outside of Adagio how much freight should be allocated to the non-stock detail - in this case it's $2.50.

When receiving, receive the four details, for a total of $100. Then add three freight lines. The first is for $10, 100% pro-rated to the details based on value. That will bring the total receipt up to $110 (debit Inventory, credit Receipts Credit). The second will not be prorated and will be for negative $2.50, making sure to use as the Debit GL account Receipts Credit. This will reduce the receipt total down to $107.50 but will not create a GL entry (the debit and credit are to the same account). The third will not be prorated and will be for positive $2.50, making sure to use as the Debit GL account Freight Expense. This will restore the receipt total back to $110 (debit Freight Expense for $2.50, credit Receipts Credit for $2.50).

The other two ways, which still require manual calculation of the non-stock detail allocation, involve making the adjustment once the invoice hits Payables (but before it's posted), and making the adjustment in Ledger. I favor doing all of the adjusting in one module at the time of receiving.

Steve