I was interested in knowing how some of you account for standard cost freight charges in Baan.

I am using Baan IVc.

Currently the way it is set-up now is that a freight accrual account has been created and it gets credited each time there is a purchase receit.

ie Debit: Inventory - Raw
Credit: A/P Accrual
Credit: Freight Accrual

The way it clears is that when the freight expense actually comes in, the expense gets debbited against the accrual.

Does this some about right to anyone.

If you have a freight component in your standard cost, that's a fairly common way to handle it.

Scott

Then at the end of the month, what I do is take the difference in my freight accrual account and post it to my COGS.

Something about this sounds strange, but this was the procedure I was given.

What do you think!

What we did was set up a ledger account "Misc. Inventory Costs" then charge the freight to this account so that it will not affect our standard cost of our inventory items. For our Cost items we just let the freight go to the applicable expense account.