## Understanding Freight Vouchering for Subcontract Management

This chapter discusses freight vouchering for subcontract management.

### Freight Vouchering for Subcontract Management

The U.S. federal government requires that cost be accurately and consistently applied to the correct final cost objective on a contract. Typically, freight charges are spread only to inventory line items because calculation of freight is based on item characteristics such as weight or volume. However, freight charges must also be charged to nonstock items and service lines. You spread invoiced transportation freight charges from the supplier to the appropriate services lines, so that each nonstock line absorbs a proportion of the overall transportation cost associated with the service.

When vouchering during two- or three-way voucher match, you apply the freight charges proportionately to those lines to which freight applies. You distribute freight charges from a supplier to different general ledger accounts for lines with an inventory interface of A and B only. You determine the amount to assign to the job of each line that you can distribute by percentage or amount. You use either the same job and account code as the base charge or the same job as the base charge with a different object account code from the base charge.

On the Voucher Match program (P4314), select the Freight Distribution (P43147) processing option on the Versions tab to call a version of the Freight Distribution program (P43147). Also, set the processing options on the Freight Distribution tab.

Set the processing options for the version of P43147 called by P4314.

During voucher match, select 5 in the OP (match processing) field (from UDC 43/VM) on the Voucher Match form to enable freight distribution on the line.

The Freight Distribution program is called dynamically when the line is exited for any changes made to the freight line. You can also select Distribute Freight on the Row menu to call the Freight Distribution program.

The Freight Distribution program enables you to distribute the freight charge that is created during voucher match and allocate the amounts to the jobs of existing lines on the voucher. The system displays existing voucher lines of inventory interface A and B.

A freight distribution line with inventory interface of A does not allow a quantity for the line. You must enter an amount and a valid account number. The supplier number for the voucher is used for the freight line.

On the Freight Distribution Revision form (W43147A), you select to distribute by percentage or amount. For a multiple account distribution line, the parent line (from the F4311 table) is not displayed but the multiple account lines (from the F4316 table) are displayed.

When you exit a detail line, the Distributed and Remaining field values are recalculated. The total amount must either equal zero or equal the amount on the line from voucher match.

The freight account, either the account on the line or the account determined by the financial automatic accounting instruction (AAI), appears in the grid. You cannot override this account on the form.

Note. The system uses financial AAI PCFRTD for freight distribution.

If you return to the Voucher Match form and change the amount on the voucher line, then you must return to the Freight Distribution Revisions form to modify the amounts if distributing by amount. You can also return to the Freight Distribution Revisions form to make overrides.

If you return to the Voucher Match form and select additional lines for vouchering, the system assigns zero amounts to the lines. You must manually modify the amount or percentage for these lines using the Freight Distribution Revisions form.

The Freight Distribution workfile record (F43147) is deleted at the completion of the transaction. Purchase Order Detail File (F4311) records are not created for the freight line during voucher match. The system creates general ledger and accounts payable records.

Taxes are allowed for a freight line.

The following functionality is not supported when you are using freight distribution:

- Service units for accounts payable matching.

- Retainage.

- Landed cost.

To perform a voucher match reversal for a line with a 5 in the OP field, you must manually remove the record from the F0911 table. You cannot perform a reversal at shipment confirmation.

See Also

AAI Tables for the Financial System

Forms Used to Create Subcontract Vouchers

Setting Processing Options for Voucher Match (P4314)