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Can I exclude shipping costs from my profits?

Can I exclude shipping costs from my profits?

Q: I would like to exclude the cost of shipping from our profit margin on our invoices when looking at our sales report. Right now, we have shipping set as Ship under Services, but this includes shipping as 100% profit. How can we add a cost to this service?

A: You can add the cost of shipping to a sale using a Manual Journal. This will subtract the cost from what the customer has paid in the Additional Costs section.

For purchases, the best way to exclude shipping cost from your profits is to distribute the expense via landed costs. For a step-by-step guide on how to apply landed costs, click here.

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