If all of the following questions can be answered with “Yes,” use a Non-Inventory Item:
- Is the fee assigned by Warehouse?
- Do you need G/L Account Determination to follow Item Groups, Warehouses, specific Items, or Advanced G/L Account Determination rules?
- Do you need Purchasing/Sales History at the line level rather than only at the posting document level?
- Do you NOT want the fee to impact the Item Cost (Inventory Valuation) of other goods?
- Does the fee need to be applicable in both Sales and Purchasing documents?
- Do you need an Item Master for enhanced data maintenance and control?
- Do you want to include the fee as a component line in a BOM?
- Do you need a document line that does not impact Inventory Quantity or Inventory Value, allowing you to accommodate complex business scenarios instead of relying on standard SAP Business One functionality?
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If all of the following questions can be answered with “Yes,” use Header Freight:
- Is the fee an additional charge related to the document as a whole? (Purchase history is available at the document level rather than the line level, unless a custom report is developed.)
- Do you simply want to add a charge and decide whether or not it should impact Item Cost (Inventory Valuation)?
- If the charge should impact Item Cost, are you comfortable allocating the cost by Quantity, Volume, Weight, Equally (divided by the number of lines), or Line Total?
- Are you paying the fee directly to the same Vendor from whom you are purchasing the goods?
- If the charge impacts Inventory Valuation and is paid directly to the same Vendor, do you need the Item Cost to be updated immediately upon receipt of the goods? (The cost arrives with the goods and no later adjustment is required.)
- Do you want the flexibility to apply the charge in Sales transactions, Purchasing transactions, or both?
- Can the Revenue and/or Expense G/L Account be determined by the Freight Code itself, without requiring Item-, Warehouse-, or Item Group-based account determination? (Otherwise, separate Freight Codes may be required.)
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If all of the following questions can be answered with “Yes,” use Landed Cost:
- Do you want to add a charge that always impacts Item Cost (Inventory Valuation)?
- Is the fee an additional charge related to the document as a whole, while also requiring the ability to allocate custom charges to individual line items using Quantity, Volume, Weight, or Equally (divided by the number of lines)? (Purchase history remains at the document level, while cost impact can be allocated to individual items.)
- Are you paying the fee to a different Vendor, Broker, Carrier, or third party rather than the Vendor from whom you are purchasing the goods?
- Can the fee(s) arrive after the goods are received, and do you need the ability to use estimated costs initially and later post the actual charges while automatically reconciling inventory valuation differences?
- Do you only need the fee to be entered during Purchasing transactions?
- Can the Revenue and/or Expense G/L Account be determined by the Landed Cost Code itself, without requiring Item-, Warehouse-, or Item Group-based account determination? (Otherwise, separate Landed Cost Codes may be required.)
