Landed cost of a product is the total cost involved in bringing a product to the seller’s warehouse apart from the cost of goods. This is usually the freight, shipping charges, customs and other charges that the seller may incur till he procures the goods.
Tracking the landed cost helps determine the overall cost incurred in procuring the product. This, in turn, helps you to decide the selling price for your stock without compromising your profits.
You must first enable landed costs for your organization. To do so:
Note: Ensure that you have enabled inventory tracking for the items for which you wish to allocate landed costs.
Once you have enabled Landed Costs for your organization, you will be able to add and allocate them to the items in your bills.
Step 1: Adding Landed Costs to Bills
Step 2: Allocating Landed Costs to Items in the Bill
Once you have added the landed costs to a bill, you will be able to allocate them to the bill items proportionately. There are two ways to do this:
1) Allocating landed costs while creating a bill:
Insight: You can also choose not to allocate any landed costs to that particular bill and allocate them to other bills.
2) Allocating the landed costs to an existing bill:
Note: You can also edit bills created earlier to add landed costs to them and allocate it.
There may be cases where your vendor does not offer any shipping for the product and you get it shipped by another shipping agency, in that case, you can create a separate bill with just the landed costs and apply them to another bill. You can also apply any unused landed costs from other bills. To do this: