Sales Order Shipments (7.9.15) and Pending Invoice Maintenance (7.13.1) create an additional GL transaction that enables you to accrue freight expenses incurred but not yet billed to you by the freight carrier. In addition to the usual GL transaction for sales order shipments, the system also creates the following transaction for freight charges:

The system uses the sales freight applied and accrued accounts, defined in Domain/Account Control (36.9.24), to post freight dollars calculated in sales order shipments.

The system debits the Sales Freight Applied account and credits the Sales Freight Accrued account for the calculated freight amount rather than the actual freight amount charged to the customer on the order. This approach lets you track estimated freight expense separately from freight actually billed. You can also compare expected freight expense to the charges paid in Accounts Payable.