Reconcile Freight and Additional Charges


If Estimated Charges were entered during the purchasing process, this utility is helpful for reconciling the estimated add-on charges with the actual charges. This can by found by going to A/P / Reconcile Freight/Additional Charges.

This utility was designed to reconcile estimated freight and accrued add-on charge amounts entered in the Inventory area. Select the checkbox in the first column of line items to be reconciled/edited.

  • Estimated Freight Vendor – Select the freight or add-on charge vendor to be reconciled. The charges display and may be filtered by selecting one of the filter options and choosing Apply found in the Filter area.
  • Actual $ – Enter the actual amount of the bill in the Actual $ column.
  • Post AP Bill – If an A/P Bill is needed, check the Post AP bill checkbox which displays the Post A/P Bill for freight amount information.
    • Post A/P Bill for freight amount – Complete the information from the A/P Bill. Selecting Apply displays the general ledger account from the estimation and the dollar amount from the actual amount in the grid. If one or more additional G/L accounts are required for this A/P Bill, double-click on the G/L column heading of the grid for additional lines. Choose Post to post the items to the general ledger and the A/P Bills.
  • Select All – This selects all charges showing in the grid.
  • Set Act to Est – Quickly set the Actual $ column to be the same dollar amount as the Estimated $ column. After using this, edits can be made to the Actual $ amount as necessary.
  • Post All – Choose this to select the Post A/P Bill column for all the estimated charges showing in the grid.
  • Print – This will print the grid.
  • Post – Selecting this will post the journal entry for the difference between the estimated and actual amounts for all selected entries and optionally the A/P Bills.

Reconcile Freight/Additional Charges Process

Reconcile estimated cost to actual cost for freight and additional charges, optionally creating an A/P Bill.

  1. Navigate to Accounting / A/P / Reconcile Freight/Additional Charges.
  2. Select the freight (or add-on) vendor at the Select Vendors window. The line items to reconcile display in the grid on the Reconcile Freight/Additional Charges window.
  3. Choose the line items to be reconciled or choose Select All to select all lines.
    Note: The grid is populated based on the criteria selected in the Filter section of the Reconcile Freight/Additional Charges window. Select Apply after changing the criteria.
  4. Enter the actual charge in the Actual $ column.
    Note: Selecting Set Act to Est changes the amount in the Actual $ column to the amount in the Estimated $ column for all selected line items. Post All selects the Post AP Bill column for all selected line items.
  5. If an A/P bill should be created, select the Post AP Bill option.
  6. In the Post AP Bill for freight Amount section, enter the information for the A/P bill. The Bill Date, Due Date, and Invoice # are required fields. Choose Apply.
    Note: Be cautious in changing the GL account number listed in the Post AP Bill for freight Amount section. The number is automatically populated as indicated below:
    • If reconciling estimated freight, it populates from the Estimated Freight account number at Accounting / Setup / Locations on the G/L Posting tab.
    • If reconciling add-on charges, it populates from the G/L Account number at the Edit a Purchase Add-on Charge window at Accounting / Setup / Inventory / Purchase Add-On Charges. If no G/L account is indicated, it populates from the same area as estimated freight.
    • Journal entries for the difference between estimated and actual costs are automatically made to the account listed above and the G/L account listed as the Freight/Add On # at Accounting / Setup / Inventory Departments on the G/L Posting tab.
  7. The On Hold option creates the A/P bill and makes the journal entries but hides the A/P Bill at the Pay Bills window. To pay the Bill, open it at Accounting / A/P / Add/Edit Bills and uncheck the On Hold option.
  8. Optionally select Print to print line items displayed in the grid.
  9. Select Post to post the line items and the A/P Bills.

Posting Notes

If the option to Post an A/P Bill was used, the posting of the bill is identical to the posting that occurs when an A/P Bill is manually added.

  • General Ledger – A Vendor-Type journal entry is made to move the amount from the Estimated general ledger account to the Actual account. If there’s a difference in the Actual $ compared to the Estimated $, the difference is handled with a journal entry.
Vendor Journal EntryDebitsCredits
Amount Due vendor on AP Bill (if AP Bill is posted)Estimated Freight (for the location) or the accrual account 
Amount Due vendor for AP Bill (if AP Bill is posted) Accounts Payable (for Vendor location)
Difference between Estimated Freight and Actual FreightFreight/Add-On account from Inventory Department 
Difference between Estimated Freight and Actual Freight Estimated Freight Account (for the location) or the accrual account