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  •     QAD Glossary

  • Processing Logistics Charges
    This section describes how logistics charges are processed once accrued.
    Logistics Charge Pending Invoice
    For each PO line received into inventory, the system checks each cost element for that line item in the Material or Overhead category in the GL cost set. If the cost element is linked to a logistics charge code belonging to the PO terms of trade and the charge is your responsibility, a pending invoice is automatically created for that logistics charge.
    Logistics Charge Pending Invoice Maintenance (2.15.7) can only be used to review a pending invoice and edit the logistics supplier. It is automatically updated with the supplier invoice number and variance details during matching.
    Although you can match invoice amounts from logistics suppliers to pending invoices with blank suppliers in Receiver Matching Create (based on the control setting), it is easier to match pending invoices when logistics suppliers are assigned.
    When you receive more than one invoice for the same logistics charge, you can enter the supplier from the first invoice and match the amount, then change the supplier on the pending invoice before matching the second invoice.
    Example: A single pending invoice is created for freight and you receive two invoices, one from a shipping agent for transporting the goods to a local port and another from a local carrier for transporting the goods from the dock to your company warehouse.
    Logistics Supplier Invoice
    When an invoice is received from a logistics supplier, the total amount of the invoice is recorded in Supplier Invoice Create (28.1.1.1). To capture the logistics costs for individual line items, a portion of the total invoice amount is allocated to each line item on the associated order.
    The system apportions inbound and outbound logistics charges to line items on an order when the pending invoice is created, based on the apportion method associated with the logistics charge code. The total invoice amount is allocated to individual line items as a ratio of the accrued logistics charges.
    On logistics supplier invoices, the PO number is left blank. The invoice status code is enabled for receiver matching just as for normal orders.
    Matching Logistics Charges
    When invoices arrive from logistics suppliers, use the Logistics Charge tab of Receiver Matching Create (28.2.1) to match the accruals on pending logistics charge invoices to the logistics supplier invoice for payment.
    See User Guide: QAD Financials for details on receiver matching.
    Variances
    When you indicate that matching is complete against a logistics charge by setting Close Line to Yes, the system calculates the variance, if any, as the difference between the invoice amount and the accrued amount less the invoiced amount. Any difference is posted to the variance account for the logistics charge. Variances are calculated, but not recorded, when Close Line is No.
    GL Effect
    An invoice to a logistics supplier for logistics charges accrued during a purchase receipt (inbound) creates the following GL transactions:
    Debit the inbound accrual account for the logistics charge, product line, site, and supplier type.
    Credit Accounts Payable for the logistics supplier.
    An invoice to a logistics supplier for shipments to customers creates the following GL transactions:
    Debit the Sales Order Accrual account for the logistics charge, product line, site, and supplier type.
    Credit Accounts Payable for the logistics supplier.
    Logistics Accounting Reporting
    The following three reports are useful for analyzing logistics accounting:
    Matching Logistic Charge Variance Report (28.2.8), which is similar to Matching Variance Report, but is specific to logistics charges.
    Logistics Charge Variance Report (28.17.17), which is another view on logistics charges using operational data
    Open Logistics Charge Report (28.17.18), which is similar to Unmatched PO Receipts, but for logistics charges.
    The above slide displays two sample reports.
    For a complete list of available Logistics Accounting reports, see User Guide: QAD Master Data.