When creating an invoice with a purchase order reference, what options are available for unplanned delivery costs?

When creating an invoice with a purchase order reference, the ability to split unplanned delivery costs among invoice items is particularly significant as it aligns with practical business scenarios. This option allows for a more precise allocation of additional costs to specific items in the purchase order, reflecting the true cost associated with each item. By distributing these costs appropriately, organizations can maintain accurate financial records and ensure that their accounting reflects the actual expense related to the delivery of goods.

This feature is useful in situations where an invoice includes unplanned delivery charges that are not originally accounted for in the purchase order. Splitting these costs can prevent misallocation and help maintain the integrity of inventory valuation and expense reporting.

Other options, such as posting costs to a single account or treating them as discounts, do not provide the same level of detail or accuracy in financial reporting. Similarly, the notion that costs cannot exceed the order amount does not facilitate an accurate representation of unplanned costs that may arise, as these costs could indeed be higher due to unforeseen circumstances.