Oncost flexibility – Quote Stock Sell new Supplier Invoice entry screen
- by admin Aug 04, 2017
We’ve just released an updated supplier invoice entry screen in Quote Stock Sell. This new screen allows a lot more flexibility for adding oncosts to your goods particularly if you are an importer. This screen is for use with inventory invoices as well as drop ship invoices from suppliers, and is for local or overseas currency invoices.
The first steps are much the same as the old screen, in that you select whether the invoice relates to inventory goods or drop ship goods, then select the supplier, the location the order belongs to, and then enter the supplier invoice number – where it is, as always, checked for uniqueness within that supplier. Once the invoice number is entered you will be presented with a drop down of available purchase orders for that supplier to match to your invoice. Once selected the screen will be populated with the purchase order information and an expected total for the supplier invoice based on your purchase order.
Once the screen is populated you can enter the invoice total, tax and ex-tax total from your supplier invoice. This will then give you a balanced or unbalanced invoice (balanced if it matches the purchase order items). If there are items such as freight or credit card surcharges your invoice won’t balance, so now you can add these in the second grid titled “Miscellaneous and Non Order related – On invoice”:
Click the plus button “Add new record” to add each line item that is not part of your original purchase order, such as freight, or credit card surcharges for example. When you add them you have the choice to assign the cost to the value of the goods on the invoice and increase their cost in inventory or you can select a Xero expense account to send them to instead, leaving the inventory item costs untouched.
Now you can check that your invoice is balanced. If it is not then you may need to check the quantity and/or prices of items supplied on the invoice and adjust if necessary.
If you have no other costs to attribute to that inventory then you can submit this to accounting via the submit button, or save this supplier invoice for later addition of oncosts that are not on the invoice. If you know the other oncosts that you need to add, you can proceed to enter those now.
To enter oncosts that are not on the supplier invoice we have two more grids on this supplier invoice screen, one for local currency non-invoice oncosts and one for foreign currency non invoice oncosts (where the foreign currency must be the same currency as the original invoice).
To enter these costs proceed to the next grids on the screen entitled “Miscellaneous and non-order related – Off Invoice local” and “Miscellaneous and non-order related – Off Invoice FX”. The local costs might be port charges, local freight, fumigation and quarantine for example and are charged in local currency, and you want to apportion these costs to the goods on the invoice. Foreign currency costs might be a bill from an independent freight forwarder or similar in the overseas country of origin of your goods.
Let’s look at an example of adding local currency oncosts. This is only for the costs you want to apportion to the goods, so GST or VAT is not entered here as it is not directly apportioned to the cost of those goods – you would enter that along with the rest of that invoice directly into Xero. So once you have decided on your oncosts you click the plus sign to add new record in the grid:
This will then provide you with a pop-up window as follows:
Enter a description of the item, in the example above we have chosen freight, for local freight charged from the port to our warehouse. Enter a quantity (one is usually best as it will minimise any rounding errors). Enter the total cost of that line item, in this case we have chosen $1000 being our local invoice cost excluding tax. I then select the allocation method I wish to use – I can choose “Manual” and then go through and manually allocate this cost to the items on the invoice myself, I can choose “By value” and have the cost allocated by the item’s value in relation to the total value of goods on the invoice, or I can choose “By unit” to have the cost apportioned evenly to each unit item irrespective of unit value. I then select the GST/VAT rate if the charge has GST or VAT on it. Lastly I need to choose a Xero clearing account to put that charge to:
Select the appropriate clearing account you wish to use from a drop down list of your Xero accounts. You might choose “Freight charges local (imports) – clearing” for example. When this information goes across to Xero, the oncost will go to your inventory account increasing the value there, and the other side of this entry is to your clearing account. Then when you enter your invoice from the freight forwarder directly into Xero you can put the item to the clearing account as it is already taken up in inventory.
You can do this for each line item in the grid, from as many invoices or other sources as you need to. The process for foreign currency oncosts is the same, but in the currency of the original invoice. The foreign currency costs are converted to local currency for the inventory account but left in foreign currency when sent across to the clearing account. We recommend you use the same exchange rate that Xero uses at the time you wish to submit the invoice to ensure that the values remain balanced.