Table of contents

Summary

The landed costing screen is used to enter all the costs that are related to items that are arriving from overseas that you are allowed to add to the value of the item. 

There are two stages used because actual costs are often not known until after the products have been receipted into store.  Refer to the flow diagram for more details.

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Note to use Landed costing configurations are required in Maintain GL Control for "Landed Cost Clearing Account" and "Landed Cost Expense Account" and Lookups "ChargeType"s 

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On the Purchase Order

Set the flag 

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The landed cost Estimate

1. Select purchase orders that order that will require landed cost adjustment. 
   1. Estimate Subtab: Find purchase order (Landing cost)
   2. Can filter by supplier
   3. List showspurchase orders that have the tickbox "Requires Landed Cost" and are not already on a landed cost calculation
   Enter expected charges
2. Estimate Subtab: Add/Update Estimated Charge
Enter
3. Provide a name

Entering the Charges

1. Enter Type of charge
   
   1. Charges are setup at Administration > configuration > Lookups > "ChargeType"
2. enter Method of apportioning the charge
   1. By weight will look at the weight of each item and allocate by weight and is useful for shipping or air freight that is charged by weight
   2. By Dollar value uses the dollar value on the purchase order
   3. By volume uses the article volume
   4. Manual enables you to manually allocate the charges across all related linesNotes
3. Description - add a note to so you can remember what this charge was intended to cover.

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View the Estimated charges by Purchase Order Line

Action Button: Calculate

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and show Apportions

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1. 1. Review calculations on next tab
      1. Manual values need to be entered in the grid - the remainder will show until you have allocated all the expected cost
   2. Each line will show the purchase order value, the landed costs being added and the final cost ea.  This will then be used to update the average cost
   1. New Average cost = (current average cost * current stock qty + qty from the PO * final cost ea)/(current stock qty + PO stock Qty)
2. Action Button: Save estimate
   1. Estimates are not saved until you save the estimate (note enter a name in the title to make it easier to find in the dashboard).
3. Once ready to use
1. change the status to "ready to use" (Action button). 
4. Receive stock as normal - it will use the calculated average cost
   1. Note that stock cannot be received using Simple Stock Receipt if the purchase order is ticked as "landed cost" unless the related estimate is "Ready to use" or "Used" 
   2. Note: The $ of the stock placed into Assets will be greater than the amount to be paid to the stock supplier.  The balance is placed into a clearing account (see Maintain GL Control ) until later cleared out when the actual payments/ invoices are linked to the landed cost calculation.

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