FAQ: Operational Costs
Common questions about allocating, tracking, and reporting operational costs.
Q: Can I add an operational cost after the document is posted?
This depends on your system's settings and whether the document is locked. If the document is locked (finalized), you usually cannot edit it directly. You may need to create a correcting document or consult your accountant. Always add operational costs before posting if possible.
Q: What if I only sometimes charge customers for delivery?
You can make delivery optional. On the invoice, add the delivery cost only if you agreed with that customer to charge for it. Leave it blank or set it to zero if the customer gets free delivery. This way, each sale is costed accurately.
Q: Should I include tax on an operational cost?
Depends on your tax rules. Some operational costs (e.g., installation labor) may be taxable; others (e.g., internal delivery) may not. Ask your accountant. Usystems will apply tax rules according to your chart of accounts setup.
Q: How do I track which customers pay for delivery vs. free delivery?
Use your reports. Generate a P&L or transaction report filtered by operational cost accounts (Delivery Expense). You can also review individual invoices to see which included charges. Some accounting systems allow custom reports; ask if your version has this feature.
Q: Can a commission be a percentage or only a fixed amount?
Your system may support both. When you add a commission cost, check if you can enter a percentage or a fixed amount, or whether it calculates automatically based on the sale. Ask your administrator if unsure.
Q: What happens if the operational cost is more than the product sale?
The sale records normally, and the profit is negative (a loss). This is valid—sometimes you lose money on a sale (e.g., a heavily discounted order with expensive delivery). Your reports will show this; review it with management to decide if the pricing is sustainable.
Q: Can I recover operational costs if a sale is returned?
If the customer returns goods, you typically reverse the entire sale, including the operational cost. Consult your accountant on the correct way to handle this in your system.
Q: Do operational costs appear in my Trial Balance?
Yes. Operational cost accounts (Delivery Expense, Installation Expense, etc.) appear in the Trial Balance under the Expense section. They should match the total of all operational costs you've recorded.
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