The Landed Costs function allows you to automatically or manually allocate the costs associated with getting products from the Vendor to your Warehouse to the cost of inventory for the products on an Item receipt or Bill. Examples of these types of costs include freight, duties, insurance, customs, currency conversion or crating.

Using Landed cost #

1. Enable the Landed cost option in Purchase settings.
2. Enter a new Item with Service type, tick the Landed cost checkbox and choose the Allocation type (by weight, by amount, by quantity)
3. Generate an Item Receipt from the Purchase Order (or a Bill if not using Item Receipts) and complete as per your process.
4. Click the Landed Cost tab and enter the landed costs. Tick the checkbox Allocate landed cost manually, if you want to change the allocation
5. Link an existing Bill for landed cost or create a new one (Click to link).
6. Save the document.

Accounting #

Recording a Bill where Landed cost tab is filled in creates the following transactions in the General Journal:

• Debits: Inventory (for item cost + associated Landed cost amount)
• Debits: Input VAT
• Credits: Accounts payable
• Credits: Landed cost clearing account (set in Accounting settings)

Accounting #

Recording a Bill for Landed cost creates the following transactions in the General Journal:

• Debits: Landed cost clearing account (set in Accounting settings)
• Credits: Accounts payable