Logistics Accounting

1. Logistics Accounting Overview

2. Logistics Accounting Agenda: Introduction to Logistics Accounting Basic Setup • Inbound • Setup • Processing • Outbound • Setup • Processing • Vouchering

3. 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

4. Inbound and Outbound Logistics Accounting: Inbound Outbound (To track charges related to duty, customs, insurance,…) ItemSupplier (To track freight charges) Customer (or other co. location) 3rd Party Logistic Supplier 3rd Party Logistic Supplier invoice invoice Customer(Your Enterprise) Item Supplier(Your Enterprise) GL Accrual, PO Receipt Shipment Pending Voucher

5. 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

6. Logistics Accounting Lifecycle Set Up Logistics Accounting Accrue Logistics Charges Update Pending Vouchers Voucher Log Charge Invoices

7. Logistics Accounting Basic Setup

8. Logistics Accounting: Setup Flow Account Code Maintenance Logistics Accounting Control Logistics Charge Code Maintenance

9. Account Code Maintenance • Define GL accountsthatare accessed when logistics charges are accrued & vouchered • Each logistics charge can have its own set of GL accounts • Separatesets of accounts can be used to track inbound & outbound logisticscharges

10. Logistics Accounting: Setup Flow Account Code Maintenance Logistics Accounting Control Logistics Charge Code Maintenance

12. Logistics Accounting: Setup Flow Account Code Maintenance Logistics Accounting Control Logistics Charge Code Maintenance

13. 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

14. 2.15.1 – Logistics Charge Code Maintenance

16. 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

17. Inbound Setup

18. 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

19. 2.15.13 – Inbound Account Maintenance

20. 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 Overheadcost category

21. Duty and Freight cost elements

22. Item-Site Cost Maintenance • Add logistics cost elements to the GL cost set of purchased items in the receipt sites • You must enter GL costvalues in order to accrue logistics charges during purchase receipts

23. Updating the Freight Cost element

24. 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

25. 2.15.4 – Terms of Trade Maintenance Add/update logistics charge codes Responsibility = Customer or Supplier

26. 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

27. Inbound Processing

28. Inbound: Processing Flow Blanket Order Maintenance Blanket Order Release to PO Build PO from Requisitions Purchase Order Maintenance Purchase Order Receipts

29. 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

30. 5.3.1 – Blanket Order Maintenance Logistics Accounting Data frame

31. 5.3.1 – Blanket Order Maintenance Logistics Accounting Detail frame

32. 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

33. 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

34. Purchase Order Maintenance • The system recalculates the PO line item unit cost to exclude logistics costs in the Material Cost Category that are the customer’s 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

35. 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

36. 5.7 – Purchase Order Maintenance Logistics Accounting Data frame

37. 5.7 – Purchase Order Maintenance Logistics Accounting Detail frame

38. 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

39. 5.13.1 – Purchase Order Receipts Packing Slip is the external reference on logistics charge pending vouchers

40. Inbound Shipper Processing

41. Inbound Shippers: Processing Flow Purchase Order Maintenance PO Container Maintenance PO Shipper Maintenance PO Fiscal Receiving PO Shipper Receipt

42. Inbound Shippers: Processing Flow Purchase Order Maintenance PO Container Maintenance PO Shipper Maintenance PO Fiscal Receiving PO Shipper Receipt

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

44. Inbound Shippers: Processing Flow Purchase Order Maintenance PO Container Maintenance PO Shipper Maintenance PO Fiscal Receiving PO Shipper Receipt

45. 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

46. 5.13.14 – PO Shipper Maintenance Carrier Shipment Ref is the external reference on logistics charge pending vouchers

47. 5.13.14 – PO Shipper Maintenance Logistics Accounting Detail frame

48. Inbound Shippers: Processing Flow Purchase Order Maintenance PO Container Maintenance PO Shipper Maintenance PO Fiscal Receiving PO Shipper Receipt

49. 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

50. Outbound Setup