How Freight is handled in SAP
Can anyone please explain to me how Freight is handled in SAP. I see in SAP best practice there is a freight clearing account, which is a balance sheet account on the current liabilities side, and is assigned to key ERF in VKOA.
I understand that freight in balance sheet account probably captures the revenue earned from freight when a business charges freight to its customers. But shouldnt this very same account also be posted too when we actually get the invoice from our freight vendor?
Ideally this account should be then cleared against the vendor invoices we get. If there is a positive balance left then it would be revenue but if it had a negative balance then thats and expense. In case of an expense balance, shouldnt this balance sheet account be actually an expense account.
Anyone with a clear understanding of the process, please let me know how it works