Add Shipping Costs to Purchase Orders

The Problem

Your vendor invoice shows a $45 shipping charge, but you've been creating a fake "Shipping" item just to record it. Now your item list is cluttered with entries that aren't real products, and your reports mix shipping fees with actual inventory purchases.

The Solution

Use the Add Cost button to record shipping, handling, fuel surcharges, and other fees directly on your purchase order. Costs link to a GL account for proper expense tracking without creating fake inventory items.

How to Use It

1. Open your purchase order in Accounting → Purchase Orders
2. Click Add Cost (next to Add Item)
3. Select the GL Account (e.g., "Shipping Expense" or "Freight")
4. Enter the Total amount
5. Add a Tax Code if applicable
6. Click Add Cost

[SCREENSHOT: Add Cost form showing GL Account dropdown and Total field]

Pro Tip

Create specific GL accounts for different fee types (Shipping, Fuel Surcharge, Handling) so your expense reports show exactly where money is going.

Learn More

For the complete guide to purchase orders, see Purchase Orders: Complete Guide.