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Thread: Freight Cost Allocation

  1. #1
    New Member
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    May 2003
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    New Jersey
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    Freight Cost Allocation

    I am testing using the transportation system rather than landed cost to accrue for and allocate freight by item.

    Using average cost method, landed costs does not allow a fixed estimated amount ($1000 freight for point x to y) to be allocated to the items received. The LC way required a per LB cost to be applied to the receipt so the accrual and varies depending on the total weight of the shipment. We know the cost of a full truck shipment and want to accrue and absorb the entire cost into the items in the shipment (regardless of the total weight varying.

    I have been testing TMS and it appears to do this well, except if a line on the PO is not received – it still allocates costs to that item.

    Does anyone have experience with inbound freight in TMS that could give some insight into this or other possible issues?


    Robin Morris, CPA
    AMG, Inc. JD Edwards Consulting
    http://www.amginfosys.com

  2. #2
    New Member
    Join Date
    Sep 2004
    Posts
    21
    Hi Robin,

    Sorry for asking this question now after many years. We are in the similar situation and trying to include the Freight charge into the Item cost (inventory cost) after the ST/OT from Mfg. plant to Distribution BP. Any help is greatly appreciated.

    Thanks
    Bala
    JDE 9.2

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