View Full Version : Freight charges

03-06-2004, 04:50 PM

I would appreciate any comments or suggestions on freight/shipping charges. I have Peachtree Manufacturing 2004 Premium edition. I charge my customers freight/shipping charge (UPS, Federal Express) on the product I make, which my customers pays the freight charge and the product in full. Now what should I classify the account type as ? 1. Cost of Sales, 2. Income, or 3. Expense. I notice in the sample companies that Peachtree provides has as an Income ( shipping reim.), Cost of Sales, and expense. Thanks again in advance

03-08-2004, 03:19 PM
We use all three. We use "income" for freight we bill out to our customers. We use Cost of Sales to classify freight on incoming materials we use to make our product. We expense our bills from shipping vendors we use to ship product out (UPS, FEDEX, etc.). I hope this helps.