This report is intended to help using reconcile the Shipping Accrual Liability account that is holding the landed costs associated with Reconciles where the cost that was landed was OFF the Bill, meaning the Bill associated with these costs will need to be manually entered in the accounting platform, and pointed to this account.
The balance is going to keep building over time, so ideally this report should be reviewed every quarter. This is the account to post the expenses of landed cost freight, in lieu of a COGS account.
Q: How would a difference arise between the amount shown in the “Used Cost” column and the “Total Shipping Cost” column?
A: The reason a delta will occur between the “Used Cost” and “Total Shipping Cost” is when a reconcile is completed against unreceived quantities, and the reconciled quantities are not received/PO closed short.
Q: Would a shipping charge disappear from those shown in this report if our AP books that invoice to the Shipping Accrual GL in the Accounting Platform or is this simply a list of all landed freight charges by third-party shippers, and we need to confirm that each one has been booked to the Shipping Accrual GL?
A: It’s simply a list, as LOCATE isn’t looking at the Accounting Platform to see what’s been managed/updated and wouldn’t know what bill/invoice it would be corresponding to since that is created independent of LOCATE in the Accounting Platform.