...
Select an invoice to link to and select the line/s on the invoice to use - allocate the amounts to use
- The Invoices listed are all invoices that are listed in GL Accounts with "Landed Cost" special type set
| Note |
|---|
Add additional cost lines if required |
...
Where changes are to be made to the Average Cost for the Stock Articles
- The average cost of the article will be adjusted to the new average cost
- The new average cost will be applied to the current stock = ((new av cost - current av cost) * Quantity on the PO line ) / total Qty in stock now
- The new average cost will be set regardless of the amount of stock in the system
- Journals will be written including clearing out any balance in the clearing account
- The status will then move to Actual used
| Note |
|---|
If the stock level at the time of applying the actuals is below the quantity of stock on the PO line - The stock Average cost will be set to the Average cost for the PO Line Actuals
- The remainder will be journaled to the Maintain GL Control Account "Landed Cost Expense" account
- This is to avoid stock average costs being artificially inflated due to insufficient stock at time of entering actuals - see example below
To illustrate - A product was out of stock
- Say 100 units of a product was purchased for $100 with $100 total landed costs
- The Estimated Landed Cost is $2.00 ea
- When the PO is received - the average cost is set to $2
- Stock value has increased by $200 = 100 items x $2
- Then 50 are sold and shipped to customers - leaving 50 in stock
- When the Actuals are linked to Invoices it is found that Landed costs were $150 in total ($1.50 each)
- The Actual Landed Cost is $2.50 ea
- Stock value increase should have been $250
- When the Landed Cost is finalised - the average cost is set to $2.50 (an increase of $0.50)
- Stock value increases by $25 = $0.50 x 50 items
- $25 is not allocated to stock value (if it was then the average cost would have to be increased to $3.00 each item)
- $25 is allocated to the "Landed Cost Expense Account"
|
Landed costing diagram of the flow.
...