Adding Supplemental Costs during Receiving

In many industries, the amount of  inbound freight, duty, and customs fees for an item may make up a substantial part of the cost of the item.  In some cases, the cost of the inbound freight, duty, and customs fees for the item must also be included in the accounting "cost" of the item and carried as part of the item cost in the inventory subledger.

The Stream Applications support adding supplemental or additional costs to the costs of the items that you receive into inventory.  Supplemental costs are costs that are associated with an inventory item but that are not included in the vendor or purchase order price for the item.  Examples of supplemental costs would include items like the inbound freight cost for an item and the customs fee or duty paid to import an item.  Typically, the supplemental costs for an item are paid to a vendor other than the vendor the item was purchased from.  This vendor can be a government agency, a customs broker or a freight forwarder.

Stream allows you to add supplemental costs to inventory items during the inventory receiving process using two different methods.  These two methods are the Freight Adder System and Manual Supplemental Cost Allocation. 

Note: Please note that the two methods described in this section are not compatible and that using the automated Freight Adder Logic precludes the use of Manual Supplemental Cost Allocation.  If you are using the freight adder option, you should disable Manual Supplemental Cost Allocation by setting the system parameter F248:IRSUPCST to N.  If you are using the Manual Supplemental Cost Allocation option, you should disable the Freight Adder option by seeting the system parameter F248:PRFRTADD to N.

Each of the options for adding supplemental costs to items during the inventory receiving process are described in the next sections.


Freight Adder System

Manual Supplemental Cost Allocation