Shipments - Are Shipping Costs Journaled?

When recording a shipment, there's an area in the UI for Shipping Costs. I always assumed that was just a field in the Shipment Order record, but when I enter it for a Sales Order in FCY, there's a currency conversion that looks like it's taking place:

Does this mean that this is journaled somewhere? That seems like it would be the only reason for that.

If it's not journaled, does this mean that it assumes the shipping amount is in the currency of the Sales Order and apply a factor so that the number recorded is always in the base currency?

It seems like the only purpose for that field would be to record actual shipping costs, i.e. what we as the seller pay, not what our customer pays.

If both of those are true, it's a bad assumption to think that the freight we pay will be in the FCY. A very common (possibly the most common) scenario here is that foreign customers are charged in their own currency (FCY), but shipment takes place from a warehouse somewhere else, likely the BCY area, but could be a different FCY. In most cases, the shipping cost is going to be in the currency of the warehouse, not the Customer / Sales Order.

It seems like a better architecture here would be for that field to have variable currency selection, defaulting to the currency of the warehouse location.

Am I missing something?

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