There are situations when the material arrives on one vendor invoice and the shipping freight arrives on a different vendor invoice. This is often referred to as “3rd party freight bills”. Both the material and freight costs can be verified against the same purchase order on separate vendor bills. Verify the materials to the purchase order as you normally would. Be sure to leave one of the freight fields open (either Freight 1 or Freight 2) to use on a different vendor payable. After the materials have been verified on a vendor payable, the freight that is being billed from another vendor can be verified on its own payable. Follow these steps to create a new payable and attach the original purchase order to the new freight payable.

Process

Navigate to A/P (Accounts Payable) and click the NEW button. Select the freight vendor from the drop-down list of vendors. If the vendor is not listed, you will need to create the freight vendor first before creating the payable. Fill in the top portion of the vendor bill voucher with the posting date, invoice date, and invoice number. If the vendor has invoiced, you for freight on multiple POs then a payable will need to be created for each unique PO. Enter the amount the vendor has invoiced only for that specific PO in the Bill Amount field. Click on the PO Materials Tab (the PO Freight Tab can be used in some older versions) and enter the purchase order number into the inventory locator field (see Figure 1.1).

Figure 1.1

Click on the Locate button to open the verification screen. Enter the freight into either the Freight 1 or Freight 2 field. Use the freight field that has not already been used (see Figure 1.2).

Return to the payable voucher and verify that the verified total is equal to the freight amount on the statement from the vendor for this respective PO. Once the entry is complete, Accept the payable. Repeat these steps for each unique PO on the vendor's invoice. You can use the same vendor invoice number on each payable, the system will just give you a notification each time that you reuse the invoice number. Once all the individual payables for each PO have been entered you can pay them together in the bills due area on a single payment.