Use Intercompany Freight on Purchase Orders

Intercompany Freight is now available on Purchase Orders when a selected Site will provide hauling services and transport Items from the Vendor to a location. The Hauling Site will approve and recognize the Intercompany freight charge as Revenue. The Receiving Site will allocate the freight charge based on weight or value during the receiving process for accurate Weighted Average Cost on received Items.

Functionality
Available if enabled by navigating to Merchant Ag FIN and selecting Create Action for Declined Freight Approvals found in Admin > Installation > Access Parameters > PO tab.
Access

Intercompany Freight

Grant permission to User Profiles in Access User Profiles > Security > Purchasing > Approve Intercompany Freight

Action Items

Grant permission to User Profiles in Access User Profiles > select a User Profile > Security > Orders > Access Action Items or Fertilizer Blending > Access Action Items

Grant permission to a User Profile for Merchant Mobile in Access User Profiles > select a User Profile > Security > MAg Mobile > Action Items.

Intercompany Freight Overview

  1. Create a Purchase Order and select Intercompany Freight as the Freight Carrier - Receiving Site
  2. Approve Intercompany Freight - Hauling Site
    1. Receive the Purchase Order - Receiving Site
  3. Decline Intercompany Freight - Hauling Site
    1. Update Freight Amount on Purchase Order - Receiving Site
    2. Approve Intercompany Freight - Hauling Site
    3. Receive the Purchase Order - Receiving Site

Any Receiving or Hauling Site can review Approved Intercompany Freight by navigating to Reports > Purchasing > Approved Intercompany Freight.

Prerequisites for Intercompany Freight

  • Set a General Ledger Account to recognize Intercompany Freight Revenue
  • Select if an Action Item should be created for declined Intercompany Freight

 

Merchant Ag FIN

Set the required Parameters in Merchant Ag FIN > Admin > Installation > Access Parameters.

Navigate to IN > General Ledger and enter a Revenue Sub-account.

To indicate if an Action Item should be created for declined Intercompany Freight, navigate to the PO tab.

Merchant Ag PM

Select Intercompany Freight on Purchase Orders

When creating a Purchase Order in Merchant Ag PM, enter the Expected Freight amount, choose how the Freight will be allocated and use the new drop down menu in the Freight Carrier field to select Intercompany Freight.

Select the Hauling Site by entering the Site ID in the Freight Site field or select F12 to search.

 

Approve or Decline Intercompany Freight

To approve or decline Intercompany Freight, navigate to PO > Approve Intercompany Freight.

Supply the Hauling Site ID or select F12 to search. Enter the Operator ID of who is approving the Intercompany Freight and use the Approval menu to focus on the Freight approval status. Select either

  • All
  • No Approval
  • Approved
  • Declined.

Click the Load POs button to list all POs that match the Approval status selected and have Intercompany Freight selected as the Freight carrier on the Purchase Order.

In the Approve field, use the drop down menu to select either Approved or Declined. The amount of Freight can not be changed in this grid. Edit the Intercompany Freight amount on the Purchase Order and follow the Approve process for the new amount using Approve Intercompany Freight.

Purchase Orders utilizing Intercompany Freight can not be received until the Freight amount is Approved.

 

If enabled, an Action Item for Declined Intercompany Freight will be created for the Operator ID on the Purchase Order which provides the Purchase Order number.

NEW REPORT!

Hauling or Receiving Sites can create a report listing Approved Intercompany Freight by navigating to Reports > Purchasing > Approve Intercompany Freight.

 

Select either a Receiving or Hauling Site and retain the selection of All Dates or create a date range by entering a date in the Start and End dates fields using the mm/dd/yy format or select from the drop down calendar.