Allocating operational costs to sales documents

Operational costs (delivery, installation, commission) can be added directly to your sales documents. This ties the cost to the specific sale and ensures your profit calculation is accurate.

Before you start

• You must have permission to create or edit sales documents (invoices, sales orders).
• Know the cost you want to add (the amount for delivery, installation, or commission).
• Identify which operational cost type applies (e.g., Delivery Expense, Installation Expense, Commission Expense). Ask your accountant if unsure.
• The document must be editable (not yet finalized or locked).

Steps

1. Open the sales document (invoice or sales order) where you want to add operational costs.
   Open Invoices or Open Sales Orders

2. Look for a section labeled Operational Costs, Additional Charges, or Expenses (the exact label depends on your version).

3. Click Add Operational Cost or the + button in that section.

4. A new row appears. Fill in:

   • Type or Account: select the operational cost type (e.g., Delivery, Installation, Commission).
   • Description (optional): a note like "Standard delivery" or "Assembly labor."
   • Amount: the cost to add.

5. If multiple costs apply (e.g., both delivery and installation), repeat steps 3–4 for each.

6. Review the document total to confirm the operational costs are included.

7. Click Save or Post to record the document with its operational costs.

Accounting impact

When you add an operational cost to a sales document:

• The operational cost account (Delivery Expense, Installation Expense, etc.) is debited (recorded as a cost).
• The sales revenue or account receivable is adjusted to include the cost.

For example, if you invoice for $1,000 in goods and add $100 delivery, the document now shows $1,100 total, and the ledger records both the sale and the delivery cost properly.

Tips & common mistakes

• Do not add operational costs that were already paid separately—only costs related to that specific sale.
• If the cost applies to multiple items in a large order, you may want to split it across the items or add it as a single charge.
• Some operational costs may be taxable (e.g., installation) while others are not—check with your accountant.
• Once the document is posted, you usually cannot edit operational costs; ensure they are correct before saving.