Shipping Rule
Calculates a delivery charge from order value or weight and adds it as a tax row that credits the shipping income account.
In detail
A Shipping Rule works out a delivery charge from the order value, weight or a fixed amount and adds it to the document as a row in the taxes and charges table. Because it is a tax-type row, it posts to the account you name on the rule, usually a freight or delivery income account on sales, and it is included in the grand total the customer pays. The rule can hold slabs, for example Rs 250 below Rs 10,000 and free above, and can be limited to countries or territories. Check whether VAT should apply to the delivery charge; a row added after the VAT row is not taxed, one added before it is.
Formula
Shipping charge = Amount of the slab matching net total or weight; Rs 250 below Rs 10,000, Rs 0 above
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Debtors - YFF (customer) | Rs 9,290 | |
| Sale of Goods - YFF | Rs 8,000 | |
| VAT Payable - YFF | Rs 1,040 | |
| Rendering of Services - YFF (delivery charge) | Rs 250 |
How to record it in BRAccount
- 01Go to Selling > Shipping Rule > New and name it, for example Kathmandu Delivery.
- 02Choose Shipping Rule Type Selling and Calculate Based On Net Total.
- 03Add condition rows: From 0 To 9,999 Amount 250; From 10,000 To 0 Amount 0.
- 04Pick the income account the charge posts to and the cost center, then Save.
- 05On a Sales Invoice pick the rule in the Shipping Rule field; the charge row appears in taxes.
- 06Submit; the entry above posts with the delivery charge on its own income line.
When to use it
Create under Selling > Shipping Rule and pick it on Orders and Invoices.
Example from the demo books
Free delivery inside Kathmandu above Rs 10,000, otherwise Rs 250 added to the invoice.