Shipping Charges

Shipping Charges

Does Shipping Charge in Order -> Ship Order eventually hit the GL Accrued Shipping Liability account?

Yes, during the Order to Invoice step. It only charges this amount if you haven't entered a shipping quote with the order. If there is a shipping quote with the order, it will charge that amount to ship liability.

If so, how does this account get relieved and which account relieves the liability? a) if I pay the shipping charges b) the customer pays for the shipping charges?

It's relieved when you pay a bill to your shipping carrier. You need to select the ship liability account as the offsetting account.

After the Shipping Liability Account is relieved, it will always have a delta compared to the actual carrier billed. So how do I disposition it to have better idea of accumulated liabilities?

You can make manual journal entries to send the extra amount back to sales or some other account.