Yes, you enter inventory receipts in Receipt of Goods and freight is entered in Receipt of Invoice.

Thank you. Our inventory is valued at landed cost, which means if I receive in before the goods before the invoice---what will that to the valuation of the inventory?

If you are using Landed Cost, then you would "estimate" the Landed Costs during PO Receipt of Goods (Freight, Duty, Customs, etc). During PO Receipt of Invoice, you would then absorb any difference that may exist from your estimate (during PO ROG) to your actual.

In the costing file there is a field for unit cost and allocated cost. The valuation will remain the unit cost but when posted the COGS will be a combination of the two. We have percentages that we used based on historical freight so we know pretty much how much to add on. Everyone does it a little different.

Thank you for this suggestion-this is getting us in the right direction. I do have another question. The way our valuations of inventory need to work is based on landed cost. We have tested this out in our test system and can't see how the unit cost is affected once the difference is added in at the receipt of invoice. Perhaps you can give more clarity on this. Thank you.

The costs are not updated a RoI. That's why you need to estimate at RoG.

Kevin M is Correct. The PO Receipt of Invoice does not update Item Landed Cost. Only PO Receipt of Goods updates the Landed Cost. This is why you estimate at time of ROG; and it should be an educated estimate. If there is significant differences between what was applied during ROG and what was later applied at ROI, those costs will NOT be added to our Inventory Costs. A complete and thorough test in a Backup Company is recommended.

Thank you everyone for their replies. I had a feeling that the POI does not update item landed cost based on testing in our Test Company. I just needed verification.