Freight on SAP Business One




Freight Costs or what we usually know in Indonesia as "transport costs" or "delivery costs" are expenses for moving goods from the seller's warehouse to the buyer's warehouse.

The costs included in this freight include shipping costs, import duties, shipping insurance costs both during purchase transactions and sales transactions.

There are 2 types of conditions for the delivery of goods in a trade transaction, including:

 

1. FOB (free on board) Shipping Point

 

The transportation costs (shipping costs) of merchandise from the seller's warehouse to the buyer's warehouse are the responsibility of the buyer of the goods. So that ownership of the goods has become the right of the buyer even though the goods are still at the seller's place. Even though at the time of closing the books in the buyer's accounting cycle, the goods have not been received, the goods must be recorded in the inventory account.

 

2. FOB (free on board) Destination Point

 

The transportation costs (shipping costs) of merchandise from the seller's warehouse to the buyer's warehouse are the responsibility of the seller, so that ownership of the goods becomes the buyer's right when they are received by the buyer. If at the end of the financial year the goods have not been received, then the value of the goods may not be included in the accounting records as inventory by the purchasing company in the year-end balance sheet.

 

How to Activate the Freight Feature on SAP Business One


First, open your SAP application then select Administration > System Initialization > Document Settings. Next, look at the "Manage Freight in Documents" section then the checklist to be able to activate Freight in Documents.




Second, after successfully doing this, when you make a sales or purchase transaction, freight costs will appear when creating the transaction document.


 

How to Set Up this Freight


First, select the Administration > System Initialization > Document Settings > General Tab. Next, click the "Freight – Set Up" section, until the layer display appears as follows.