Logistics Accounting

Overview

Logistics Accounting Agenda:

Introduction to Logistics Accounting Basic Setup Inbound
Setup Processing

Outbound
Setup Processing

Vouchering
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What is Logistics Accounting??

QAD module for tracking costs, such as freight and duty, that are incurred when items are received into, shipped from, or moved between sites

Addresses both Inbound and Outbound functionality

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Inbound and Outbound Logistics Accounting:

Inbound
Item Supplier
(To track charges related to duty, customs, insurance,)

Outbound
(To track freight charges)
(or other co. location)

Customer

3rd Party Logistic Supplier

3rd Party Logistic Supplier

invoice

invoice

(Your Enterprise)

Customer

Item Supplier
(Your Enterprise)

PO Receipt
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GL Accrual, Pending Voucher

Shipment

Where Do I Find Logistics Accounting??

In Desktop2:
Key-word search: Logistics Accounting

Or search on Addresses / Taxes; Logistics Accounting menu displays in list

In character UI:
Menu 2.15 for Logistics Accounting

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Logistics Accounting Lifecycle

Set Up Logistics Accounting

Accrue Logistics Charges

Update Pending Vouchers

Voucher Log Charge Invoices

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Logistics Accounting Basic Setup

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Logistics Accounting: Setup Flow

Account Code Maintenance

Logistics Accounting Control

Logistics Charge Code Maintenance

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Account Code Maintenance

Define GL accounts that are accessed when logistics charges are accrued & vouchered Each logistics charge can have its own set of GL accounts Separate sets of accounts can be used to track inbound & outbound logistics charges

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Logistics Accounting: Setup Flow

Account Code Maintenance

Logistics Accounting Control

Logistics Charge Code Maintenance

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Logistics Accounting: Setup Flow

Account Code Maintenance

Logistics Accounting Control

Logistics Charge Code Maintenance

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Logistics Charge Code Maintenance

Used to define codes for the logistics charges payable to third-party suppliers Logistics charge code can be used for inbound purposes, outbound purposes or both Used to define separate codes for inbound usage & outbound usage
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2.15.1 Logistics Charge Code Maintenance

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Summary
Define GL accounts for logistics charges in Account Code Maintenance Enable Logistics Accounting in Logistics Accounting Control Define logistics charge codes in Logistics Charge Code Maintenance
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Inbound Setup

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Inbound: Setup Flow

Inbound Account Maintenance Cost Set Maintenance

Cost Element Maintenance

Cost Set to Site Assignment

Item-Site Cost Maintenance

Terms of Trade Maintenance

Supplier Maintenance

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2.15.13 Inbound Account Maintenance

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Cost Element Maintenance

Inbound logistics charges are considered part of the overall cost of inventory & are included in item costs Create a cost element for each logistics charge you want to accrue A Cost element must be in the Material or Overhead cost category
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Duty and Freight cost elements

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Item-Site Cost Maintenance

Add logistics cost elements to the GL cost set of purchased items in the receipt sites You must enter GL cost values in order to accrue logistics charges during purchase receipts

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Updating the Freight Cost element

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Terms of Trade
ToT defines the logistics charges associated with purchasing items from external suppliers & defines who is responsible for paying each charge ToT are assigned to purchase orders & tell the system which logistics charges to accrue on receipt

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2.15.4 Terms of Trade Maintenance

Add/update logistics charge codes

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Responsibility = Customer or Supplier

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Inbound Setup Summary

Set up inbound logistics accounts at more detailed level in Inbound Account Maintenance Set up cost elements and associate them with logistics charges Set up terms of trade

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Inbound Processing

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Inbound: Processing Flow

Blanket Order Maintenance Blanket Order Release to PO

Build PO from Requisitions

Purchase Order Maintenance

Purchase Order Receipts

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Blanket Order Maintenance

When a PO is created using Blanket Order Maintenance, Purchase Order Maintenance, or Scheduled Order Maintenance, the Terms of Trade (ToT) defaults from the item supplier
The same Logistics Accounting frames and fields are used in all three programs Logistics Accounting frames only display when the Logistics Accounting module is in use
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5.3.1 Blanket Order Maintenance

Logistics Accounting Data frame

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5.3.1 Blanket Order Maintenance

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Logistics Accounting Detail frame

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Blanket Order Release to PO

When a blanket order is released using Blanket Order Release to PO, the ToT & logistics charge details are copied to the released PO

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Build PO from Requisitions (GRS)

POs created automatically from requisitions in Build PO from Requisitions or created automatically by Sales Order Maintenance (EMT) inherit the default ToT assigned to the item supplier

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Purchase Order Maintenance

The system recalculates the PO line item unit cost to exclude logistics costs in the Material Cost Category that are the customers responsibility PO unit cost is not recalculated when:
A supplier quote price is available A price list is available Logistics charge cost element is in the Overhead Cost Category
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Purchase Order Maintenance

Calculates tax on logistics charges
Use Tax Detail by Transaction Inquiry and Report to view logistics charge tax records Logistics charge tax records have no effect on PO line unit cost & do not display on Purchase Order Print

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5.7 Purchase Order Maintenance

Logistics Accounting Data frame

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5.7 Purchase Order Maintenance

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Logistics Accounting Detail frame

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Purchase Order Receipts

Receiving PO line items:
Creates pending vouchers for logistics charges Accrues logistics charge values & posts them to the GL Calculates tax on logistics charges

Only one pending voucher created per logistics charge System accrues at the PO line level
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5.13.1 Purchase Order Receipts

Packing Slip is the external reference on logistics charge pending vouchers

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Inbound Shipper Processing

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Inbound Shippers: Processing Flow

Purchase Order Maintenance PO Container Maintenance

PO Shipper Maintenance

PO Fiscal Receiving

PO Shipper Receipt

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Inbound Shippers: Processing Flow

Purchase Order Maintenance PO Container Maintenance

PO Shipper Maintenance

PO Fiscal Receiving

PO Shipper Receipt
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PO Container Maintenance
All PO lines in a container must have the same Terms of Trade No other changes for Logistics Accounting

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Inbound Shippers: Processing Flow

Purchase Order Maintenance PO Container Maintenance

PO Shipper Maintenance

PO Fiscal Receiving

PO Shipper Receipt
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PO Shipper Maintenance
Carrier Shipment Ref field used for matching Logistics Charge pending vouchers Logistics Accounting Detail frame displays for updating/assigning Logistics Charge suppliers All PO lines on a shipper must have the same Terms of Trade
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5.13.14 PO Shipper Maintenance

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Carrier Shipment Ref is the external reference on logistics charge pending vouchers

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5.13.14 PO Shipper Maintenance

Logistics Accounting Detail frame

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Inbound Shippers: Processing Flow

Purchase Order Maintenance PO Container Maintenance

PO Shipper Maintenance

PO Fiscal Receiving

PO Shipper Receipt
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PO Shipper Receipt
Same Logistics Accounting functionality as Purchase Order Receipts:
Creates pending vouchers for Logistics Charges

Accrues logistics charge values & posts them to the GL

Calculates tax on logistics charges
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Outbound Setup

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Outbound: Setup Flow

Number Range Maintenance

Logistics Accounting Control

Logistics Charge Code Maintenance

Accrual Account Maintenance

Expense Account Maintenance

Freight Terms Maintenance

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Number Range Management

Must set up sequence codes that will be used as internal reference for discrete sales order and distribution order shipments pending vouchers
Sales order sequence target dataset
la_so_ship_id

Distribution order sequence target dataset

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la_do_ship_id

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Sales Order
36.2.21.1 Number Range Maintenance

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Logistics Accounting Control

Enter Sequences for Sales Order & Distribution Order shipments Enter Sales Order & Distribution Order default accounts for the Logistics Charge Code Outbound accounts

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2.15.24 Logistics Accounting Control

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Logistics Charge Code Maint

Accounts will default from Logistics Accounting Control Outbound accounts if entered there

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2.15.1 Logistics Charge Code Maintenance

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Outbound Accrual Account Maint

Provides more detailed accounting definition for Sales Order & Distribution Order Accrual Accounts for a Logistics Charge
Product Line Site Supplier Type
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2.15.16 Outbound Accrual Maintenance

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Outbound Expense Account Maint

Provides more detailed accounting definition for Sales Order & Distribution Order Expense and Variance Accounts for a Logistics Charge
Product Line

Site
Customer Type

Channel
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2.15.19 Outbound Expense Account Maint.

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Freight Terms Maintenance

Freight Terms Type determines accrual
Accrue for entire Shipment
Add (1)

Allow (2)

Accrue for each Line on Shipment

Prepaid (3) Include (5)

No Accrual for Shipment

Collect (4) Will Call (6)
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Type 1: Add
2.20.13 Freight Terms Maintenance

Enter Logistics Charge Code

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Outbound Setup Summary

Set up number ranges & sequence codes in Number Range Maintenance Set up accrual (Accrual Account Maintenance) & expense accounts (Expense Account Maintenance) Set up freight terms in Freight Terms Maintenance

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Outbound Processing
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Outbound Sales Order Processing

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Discrete SO Shipment Processing Flow:

Sales Order Maintenance

Sales Order Shipments

Voucher Maintenance

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Sales Order Maintenance

The logistics supplier represents the freight carrier that will be invoicing the selling company for transporting the goods to the customer The default logistics supplier for the logistics charge code assigned to the specified freight terms is displayed in the Logistics Accounting Detail frame before the trailer of the Sales Order

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7.1.1 Sales Order Maintenance

Logistics Supplier defaults from Logistics Charge or can be entered

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Enter BOL to use as External Reference for matching to invoice during vouchering
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Sales Order Shipments

Freight charges for the shipment will be accrued as determined by the freight terms for the order
GL transaction created
Pending Voucher created to match during voucher process

Taxes will be calculated and accrued based on the freight list trailer tax settings
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Tax transactions recorded

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7.9.15 Sales Order Shipments

Modify Freight data presented during SO shipments

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7.9.15 Sales Order Shipments

Logistics Supplier defaults from Logistics Charge or can be entered

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7.9.15 Sales Order Shipments

Prompt for Internal Reference for shipment Note: Leave blank if NRM sequence defined as internal
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Enter BOL to use as External Reference for matching to invoice during vouchering
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Outbound SO Shipper Processing

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Shipper Processing Flow:

Scheduled Order Maintenance

SO Container Maintenance

SO Shipper Maintenance

Pre-Shipper/ Shipper Workbench Pre-Shipper/ Shipper Confirm

Pre-Shipper/ Shipper Auto Confirm

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Scheduled Order Maintenance

Logistics charges accrue for customer scheduled orders only when the ship-to customer has a default freight list & freight terms defined for it in Customer Maintenance

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SO Container Maintenance or Container Workbench

First sales order line item sets the freight terms for the entire container Items added to the container from other order lines must have the same freight terms as the first order line

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SO Shipper Maintenance
All attached Sales Orders must have the same freight terms when using Logistics Accounting

The first sales order associated with the shipper will determine the freight terms for the shipper
Logistics Supplier entered on shipper has no effect on the Logistics Supplier for any of the attached sales orders
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7.9.8 Sales Order Shipper Maintenance

Logistics Supplier defaults from Logistics Charge or can be entered

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Outbound Distribution Order Processing

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Distribution Order Shipment Processing Flow:

Distribution Order Processing Voucher Maintenance

Distribution Order Maintenance

Distribution Order Shipments

Distribution Order Workbench

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Distribution Order Processing

Freight Data only displays when Logistics Accounting is enabled There is no pricing functionality in Distribution Orders so Freight List & Freight Terms must be entered if you want to accrue freight charges

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Distribution Order Processing

Freight list & freight terms can only be entered when Logistics Accounting is enabled Use Freight Term Types : Add (1), Allow (2), or Prepaid (3) Other Freight Term Types arent meaningful for Distribution Orders
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Enter Freight Data during DO creation when using Logistics Accounting

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12.17.21 Distribution Order Processing

Logistics Supplier defaults from Logistics Charge or can be entered

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12.17.21 Distribution Order Processing

Freight List defaults onto DO order line from header and can be modified
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12.17.21 Distribution Order Processing

Freight for item is now displayed when using Logistics Accounting in DO

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Distribution Order Processing

Freight charges for the shipment will be accrued as determined by the freight terms for the order
GL transaction created Pending Voucher created to match during voucher process

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12.17.21 Distribution Order Processing

Freight data presented during DO shipments when using Logistics Accounting

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12.17.21 Distribution Order Processing

Freight for item is now displayed when using Logistics Accounting in DO

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12.17.21 Distribution Order Processing

Logistics Supplier defaults from Logistics Charge or can be entered

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12.17.21 Distribution Order Processing

Prompt for Internal Reference for shipment Note: Leave blank if NRM sequence defined as Internal

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Enter BOL to use as External Reference for matching to invoice during vouchering
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Distribution Order Shipment Processing Flow:

Distribution Order Processing Voucher Maintenance

Distribution Order Maintenance

Distribution Order Shipments

Distribution Order Workbench

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Distribution Order Maintenance

Freight data is presented as described in DO Processing only when Logistics Accounting is enabled

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Distribution Order Shipment Processing Flow:

Distribution Order Processing Voucher Maintenance

Distribution Order Maintenance

Distribution Order Shipments

Distribution Order Workbench

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Distribution Order Workbench

Freight Data can be entered before Intersite Request quantities are entered Logistics Accounting Detail will be presented before confirming the DO

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Distribution Order Shipment Processing Flow

Distribution Order Processing Voucher Maintenance

Distribution Order Maintenance

DO Shipments, 12.17.22

DO Workbench

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Distribution Order Shipments

Freight charges for the shipment will be accrued as determined by the freight terms for the order
GL transaction created

Pending Voucher created to match during voucher process

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Logistics Accounting Vouchering

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Logistics Accounting: Processing Flow

Log Charge Pending Voucher Maint Open Log Charge Report

Voucher Maintenance

Log Charge Variance Report

Logistics Charge Del/Archive

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Logistics Charge Pending Voucher Maintenance

Used to assign or update the logistics charge supplier on open logistics charge pending vouchers It only lets you update the logistics charge supplier field
Pending vouchers are closed by Voucher Maintenance
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28.12 Log Charge Pending Voucher Maint

You can update the logistics charge supplier

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Open Logistics Charge Report

Used to identify logistics charges that have not yet been vouchered for payment It also provides a historical perspective on the vouchered status of logistics charges as of a given date

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Open Logistics Charge Report (28.17.14)

Used to identify logistics charges that have not been vouchered for payment
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The accounts are DO, SO, & PO Accrual Accounts. Internal Reference: (Shipment ID of a DO and SO), (Receiver of a PO)
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Voucher Maintenance
Used to match pending vouchers to logistics supplier invoices for payment When an invoice is received from a logistics supplier, the total amount of the invoice is vouchered To capture the logistics costs for individual items, a portion of the total amount must be allocated to each line item on the PO
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Voucher Maintenance
Voucher Maintenance apportions logistics charges to line items on a PO
The total invoice amount is allocated to individual PO line items as a ratio of the accrued logistics charges

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Apportioning
When the freight invoice is vouchered, the system uses the following equation:
Apportion Value = (Line Item Accrual / Total Accrual) * Total Invoice Amount

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Leave Order field blank to voucher logistics charges

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Enter the logistics charge supplier

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Select this to voucher logistics charges

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Select this to include logistics charge pending vouchers that do not have a supplier assigned

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Select this to display the Automatic Selection frame

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28.1 Voucher Maintenance

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28.1 Voucher Maintenance

You can select/deselect records

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System displays the supplier, order number & logistics charge code of the current record

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28.1 Voucher Maintenance

Enter the actual invoice amount

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28.1 Voucher Maintenance

Select Details to view or update the apportioned amounts

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28.1 Voucher Maintenance

The Applied Amount column displays the apportioned amount

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28.1 Voucher Maintenance

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Control displays the invoice amount entered in the Logistics Charge Matching Maintenance frame

The apportioned amount can be updated

Total displays the total Applied Amount

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28.1 Voucher Maintenance

Select Close Line to close the pending voucher

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28.12 Log Charge Pending Voucher Maint

The ID of the voucher that closed the pending voucher

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Logistics Accounting: Processing Flow

Log Charge Pending Voucher Maint Open Log Charge Report

Voucher Maintenance

Log Charge Variance Report

Logistics Charge Del/Archive

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Logistics Charge Variance Report

Used to view paid logistics charges where the amount accrued differs from the amount paid

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Voucher Process Summary

Match pending vouchers to invoices in Voucher Maintenance

Update logistics supplier in Log Charge Pending Voucher Maintenance

Reports available : Open Logistics Charge Report & Logistics Charge Variance Report

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Benefits of Logistics Accounting

Reduces risk of duplicate or overpayment by improving control of invoices from suppliers Enables ability to trigger appropriate management action by identifying variances Supports better pricing and portfolio analysis decisions by providing more accurate product and customer profitability information
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Questions ?

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Contact Information:

Dvonna Kienow Sr. Professional Services Consultant QAD Global Services

dkv@qad.com

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Thank You !!

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