Freight Chart of Accounts

Dion Alessi

Currently, the default Freight line at the bottom of a Purchase Order defaults in Xero as Stock on Hand. My idea would be to give us the option to choose what Chart of Accounts it defaults to in the Accounting software - saving the need to manually adjust every PO in Xero once it comes through. Saving countless hours of time. 

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3 comments

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  • Comment author
    Jay Yasith

    I'm also keen to hear advice on this as we setup freight, duty, customs and would like to be ble to report in xero in a P&L style GL codes. Our Bookkeeper isn't too switched on about reporting and using xero for a P&L - since you can't use Cin7 Std Reports except for COGS & GM

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  • Comment author
    Chris Saju
    • Edited

    Hi Dion,

    Cin7 Partner here. 

    Allocating the freight to the SOH account in Xero is ideally the right method. In Cin7, as freight is added to each Product cost to get a more accurate Landed Cost, it does 2 things.

    - Increase your SOH account in Cin7 by the respective freight value
    - When the item is sold, COGS are generated based on landed cost, which includes the freight.

    So, manually changing the SOH account to another in Xero, will result in a SOH variance between the 2 systems. 

    There is an alternative option, if you do not want freight to be allocated towards the SOH account or landed cost/COGS in Cin7. 

    - Create an ALT GL account option in Cin7 settings (eg: Freight Inwards) and enter the relevant Xero GL account No. See help article
    - Create a non-stock product called, “Freight Inwards” and allocate the above GL account option to this item.
    - In a PO, instead of adding freight value in the “Freight” field, add it in the above “Freight Inwards” as a line item.

    Hope the above helps, or let me know if you require any further assistance.

    Thanks,
    Chris Saju
    CNZ Consultants
     


     

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  • Comment author
    Sharon Bolderson Partner Ambassador

    Hi Dion,

    Sharon here from Beyond Expectations, a Cin7 partner.

    Typically freight added at the bottom of a PO is added as Stock/Landed freight intentionally and is the most common use case.

    However, if you don't want it to be a landed attributed as a landed cost then you could create a product called Freight (non stock) and link it to an Alt GL accounts (via settings) to direct to an expense code in your P&L.

    Hope this helps.

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