The inbound logistics charges accrual process starts with a purchase order or a shipper containing the required information for the system to accrue the charges appropriately.

The accrual happens during the PO or PO shipper receipt, and results in a logistics charge pending invoice.

We will now review these steps in more detail.

When you create an order in Purchase Order Maintenance (5.7), Blanket Order Maintenance (5.3.1), or Scheduled Order Maintenance (5.5.1.13), you can specify the terms of trade. After you enter the terms-of-trade code, you can, optionally, display the terms-of-trade detail lines and assign a logistics supplier to each charge that is your responsibility as a customer. Logistics charges that are the responsibility of the item supplier do not display.

In PO Shipper Maintenance (5.13.14) or PO Fiscal Receiving (5.13.16), the system prompts for additional Logistics Accounting information.

Enter the shipment reference number from the carrier, such as a bill of lading number, carrier tracking number, or packing slip number. The shipment reference is used during receiver matching to help match pending invoices to invoices from logistics suppliers.

When terms of trade are assigned to purchase orders attached to the shipper, the terms-of-trade code assigned to the first PO line is applied to the entire shipper or container.

After you finish entering line items, the terms-of-trade details display. You can specify a supplier for each logistics charge that is your responsibility.

During purchase receipt processing in Purchase Order Receipts (5.13.1) or PO Shipper Receipt (5.13.20), a pending invoice record is created for each logistics charge associated with a purchase receipt that is your responsibility.

Receiving PO line items creates pending invoices for logistics charges and the corresponding GL transactions, and calculates tax.

When a pending invoice is created in Purchase Order Receipts (5.13.1), the receiver number is used as the internal reference and the packing slip number is used as the external reference.

Pending invoices created in PO Shipper Receipt (5.13.20) use the shipper number as the internal reference and the carrier shipment reference from the PO shipper as the external reference.

In addition to the GL transactions created during PO receipt for item material cost, the following GL transactions are created for each PO line received with an associated logistics charge: