To allocate freight costs to inventory without landed costs, the following conditions must be met.

1 The Inventory Management module must be integrated with Purchase Order.

2 The Allow Entry of Landed Cost check box is cleared on the Purchase Order Options Additional tab.

3 Qty per Item, Weight, or Cost per Item must be selected at the Allocate Freight on a Line Item Basis By field in the Purchase Order Options window to specify the freight allocation factoring method to be used. The allocation is factored to each item received based on the total freight amount.

When these conditions are met, use Receipt of Goods Entry (with an invoice number entered) to calculate the proper amount of freight costs to be allocated to each inventory item received. Daily Receipt Registers/Update includes freight when posting to the appropriate General Ledger Inventory account (as defined in Inventory Management Product Line Maintenance), in lieu of a posting to the Freight Expense account.