TamilAccounting

Landed Cost

Landed Cost spreads the real cost of getting goods to your door — freight, customs duty, insurance, handling — across the items on a purchase invoice. Without it, stock is valued at the supplier's price alone and every margin calculated from it is optimistic.

Where to find it

Go to Purchases > Landed Cost.

What the list shows

Column	Description
Date	When the landed cost was recorded.
Invoice Reference	The purchase invoice the cost applies to.
Total Landed Cost	The additional cost being spread.
Created By	Who entered it.
Status	Draft, applied or voided.

The cost types

Type	What it covers
Shipping Cost	Freight to your location.
Customs Cost	Import duty and clearance charges.
Insurance	Cover on the shipment.
Other Charges	Handling, inspection and anything else.

Adding a landed cost

Add Landed Cost and select the purchase invoices being costed.
Enter the shipping, customs, insurance and other charges.
Check the item lines — each shows its description, quantity, price, line total and the New Price once the cost is spread.
Submit to apply it, which triggers a cost update on the items.

Field	Description
Reference	Your document reference. It must be unique.
Date	When the cost is recognised.
Adjustment Account	Where the difference posts.
Costing Method	How the cost is distributed across the items.
Memo	What the charges were for.

Duty must balance to zero before it will submit. If it does not, the customs figures do not add up to what has been allocated across the lines — check the per-line amounts rather than the total.

What it does to your books

Applying a landed cost raises the stock value of the items on the invoice and posts the difference to your adjustment account. Prices are shown in home currency throughout, whatever the invoice was raised in.

Action	Effect
Submit	Applies the cost. Item costs are updated.
Edit Landed Cost	Amends one before it is finalised.
Void	Reverses it. The item costs revert.
Draft	Saves without applying.

Purchase Invoices — the invoices being costed
Cost Updates — the resulting cost change
Items — the items revalued

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