Trucking Fees From Vendors
How To Record Shipping and Delivery Costs
When we receive an invoice (and goods) from our vendor(s), we are charged trucking, which I have set up under "Other" in Expenses.
However, we also add the trucking fee to the wholesale price of our items.
Is this correct, or are we actually entering the trucking costs, twice?
I apologize for the delay in responding to your question.
I am not a fan of accounts called "Other Expenses". I record only unique one off types of entries to this account. As your trucking charges are a recurring expense, I would track them in a "Shipping and Delivery Costs" account.
Also, as your delivery fees are directly related to the products you are selling, I would actually track them under your cost of goods sold accounts
(this is a "type" of account in QuickBooks) rather than your operating expense accounts.
You are not doubling the expenses when the charges are added to the wholesale price ... you are recovering the cost from the customer / consumer. By adding the charges to the wholesale price, you are increasing the price to the customer.