How to properly account for shipping costs on domestic overnight letters and packages.
Sometimes referred to as central billed payments for freight invoices, this includes all Federal Express invoices (excluding ground service).
These payments are charged directly to the coding indicated at the time shipment is initiated. A copy of the paid invoice is forwarded to the department paying for the shipment.
The following information must be included on the air bill:
- The complete name and address of persons initiating shipment
- The department name and complete telephone number for follow-up contact purposes
- Your complete accounting data (fund, account, unit, division, dept, act., class code)
Each carrier has a designated area for accounting data.
- Federal Express has reserved line #2 titled “Your Internal Billing Reference Information”
- Airborne has a “Billing Reference Information” line
- Emery and DHL have a “Shipper’s Reference” line
Drop boxes are conveniently located throughout the campus for each carrier.
Absent or Incomplete Funding
In cases where funding is absent/incomplete, Accounting Services will charge the shipper’s division’s default funding string (usually 101). The funding string that was charged will be recorded on the remitting copy that is sent back to the division. The division will be responsible for transferring the charges to other funding if desired.
If you receive a copy of an invoice with incorrect coding, contact the person initiating the shipment and ask for the correct coding to be charged.
Then complete a Non-Salary Cash Transfer Form, crediting your coding and charging the proper coding.
For questions on freight charges that have been paid, please contact Joann Neis.