How to create an overhead cost invoice for third-party costs

Introduction

This guide explains how to create an overhead cost invoice in TRAEDE to reflect third-party costs such as freight. This is useful for updating the inventory value of your products based on external costs not included in the original purchase order. This article is for users who manage product costing and inventory valuation in TRAEDE.

Steps to create an overhead cost invoice

1. Navigate to overhead cost invoices

   • From the TRAEDE home screen, go to Production > Overhead cost invoices.

   • Click New overhead cost invoice.
     
     
     

2. Fill out invoice details

   • Select supplier: Choose the supplier providing the third-party service (e.g., freight).

   • Select cost type: For freight invoices, select Shipping or the appropriate cost category.
     
     
     

3. Add invoice lines

   • Click Add line to enter the invoice items.

   • For each line:

     • Enter the description and amount.

     • Specify whether the line is VAT exempt or not.

     • It's common for freight invoices to contain both VAT and non-VAT lines.
       
       
       
       

4. Enter invoice metadata

   • Invoice number: Copy the number from the actual invoice.

   • Invoice date: Choose the relevant date.

   • Payment term: Select the correct payment term. It’s recommended to set a default on the supplier for consistency.
     
     
     
     

5. Save and book the invoice

   • After filling in all fields, click Save.

   • Then click Book to finalize the invoice.
     
     

What happens when booking the invoice?

• The invoice is sent to your connected accounting system.

• The cost is booked as deferred freight, meaning:

  • It is not immediately added to inventory value.

  • It remains in a balance account (e.g., deferred freight) until it is allocated to a purchase order (PO).

  • This allows a single freight invoice to be split across multiple POs.

💡 Note: The process of allocating the overhead invoice to one or more purchase orders is covered in the next guide.

Accounting overview (example from e-conomic)

• The booked invoice appears in the supplier’s account.

• It also appears under the deferred freight account.

• If VAT is involved, your accounting system will show separate lines for each VAT type.

• Example: Two lines – one with 25% VAT and one VAT exempt – both part of the same invoice.
  
  

Summary

Creating an overhead cost invoice ensures that third-party costs such as shipping can be properly tracked and allocated to product value. Until these invoices are allocated to specific purchase orders, they are treated as deferred freight in both TRAEDE and your accounting system.