Dealing with 3rd Party Freight
As mentioned here, it is not necessary to enter freight bills from shipping companies into DesignSmart. This section will explain how to enter freight into the system if your firm elects to do so.
| Step 1 | Add the freight charge as an Item |
For this example, we will imagine that a freight company called American Freight Inc. has sent your firm a bill for $80.00 to cover the cost of shipping a lamp. The PO number for the lamp was PO #18-0015-009.
Item Name - "Freight Charge for PO #[whatever]" is a good naming convention so that you know which PO the charge is for
Area - You might create an area called "Shipping Charge" or "Freight Charge" if you are going to deal with 3rd party freight like this.
Category - This will depend on your categories. In the example below "Freight" was used.
Proposal Pricing - You will normally leave these amounts set to $0.00. There may have been freight sub-charges on the lamp in the proposal column, but it would not make sense to add amounts for the freight to the proposal fields.
Invoice Pricing - You can enter the freight amount here if you plan to invoice the client for this freight. You can also add a markup if desired.
Purchase Order Costs - You should enter the vendor fright amount here.
| Step 2 | Depends on your firm's work flow processes |
At this point the next step will depend on your firm's work flow processes. Here are some options:
1.Stop. The vendor bill amount is now in the project and when you run reports this freight amount will show up as an $80 income and a $80 expense.
2.Create a PO and send this PO to QuickBooks, then apply the PO to the vendor's fright bill.
3.Create an invoice to recuperate this expense from the client.
Because of the various options available, we recommend that you discuss these options with your Project Manager to determine which process makes the most sense for your firm.