Add freight and customs to stock cost (landed costs)
Share a freight, customs or handling cost across the goods you received, so each product's stock cost shows what it really cost to get to your shelf.
Before you start
The goods must already be received: see Receive goods from a vendor. To split by weight or volume, the products need a Weight (kg) or Volume (m³) on the General tab.
Steps
- Open Inventory, go to Operations > Landed Costs and click New Landed Cost.
- Under Apply to receipts, type the order number and click the goods receipt (GRN). You can add more than one receipt.
- Click + Add cost line. In Cost, describe it, for example Sea freight and customs. In Account (credited), choose the account that owes the money, such as Accounts Payable. Type the Amount.
- Choose how to split the cost in Split: Equal, By quantity, By current cost, By weight or By volume. Here it is By weight, so heavier goods get a bigger share.
- Click Save, then click Compute. Valuation adjustments shows the share of each product.
- Click Post and confirm. The cost is added to the stock value, and a journal entry is created. Click Journal Entry to see it.
Tip
If the forwarder sent you a vendor bill, pick it in Cost bill and click Load cost lines. The bill's service lines come in by themselves, and each bill line can be used only once.
Note
The new stock value is the original value plus the landed cost. If some of the goods are already sold, their share goes to cost of goods sold instead of stock. The columns To Stock and To COGS show the split.
Important
After posting, you cannot change the cost. Click Reset to Draft to undo it: the journal entry is removed and the stock values go back.
What happens next
See the new unit cost in the stock valuation report.
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