How can I discount a purchase order or allocate freight when receiving a purchase order?

Option A: If you have Power Ops (Bicycle Bundle, RMS Toolkit, Matrix Master) you can use the Allocate Freight button to discount a PO or allocate freight. This option also allows you to pro-rate by dollars or units. See Power Ops, Help, Operation, Purchase Orders, Allocate Freight.

Option B: Use the Formula option in Purchase Order to discount a purchase order or allocate freight.

Example: 10% Discount on PO
1. Highlight cost of first item
2. Click on Formula button
3. Select:
- Supplier Cost
- Multiplication (x)
- .9 (10% off)
- Do not round results
- Apply formula to all rows
- OK.

You could use the same method to allocate freight pro-rated by cost. First divide freight cost by invoice sub-total. Then apply the resulting factor as above.

Example:
$1000 invoice subtotal for items
$150 freight charges
150/1000= .15

Multiply all item costs by a factor of 1.15.

Use rounding if necessary to match invoice total to the penny, or adjust a single line item on the purchase order after the formula has been applied.

PLEASE SEE COMMENTS BELOW BEFORE DECIDING ON WHETHER YOU WANT TO ALLOCATE FREIGHT.

You cannot allocate freight pro-rated by total dollars or total units in RMS unless you use Power Ops or have installed RMS 2.0.0150 or higher.

WARNING: Do NOT use freight allocation or apply discounts if you want to utilize XML push integration available with QuickBooks 2003 or higher. If you do, your invoices will never reconcile with your purchase orders. Instead track freight as a separate line item for COGS. Ditto with invoice discounts. This way you can track accumulated vendor discounts as a percentage of sales.

If you allocate discounts and freight at the PO level, rather than at the invoice level within your accounting system, you will LOSE the ability to track discounts and freight as a separate line entries within COGS.