Landed costs
The real cost of imported goods includes freight, customs and clearing. A landed cost allocation adds those bills to the cost of the goods they belong to, so your margins are right.
Before you start
- The purchase bill for the goods is posted (the target).
- The expense bills for freight, customs and so on are posted too, from the forwarder or the customs broker (the sources). Enter them with service items.
Allocate a cost
- Open the purchase bill in Purchases›Bills and go to the Landed Cost tab.
- Click Assign Expense Bill and choose the expense bill. The list shows each expense bill's total, what Remaining (all bills) is still unallocated, and what is Already to This Bill.
- Click Allocate on the expense bill and enter the Amount to Allocate to this bill's goods.
- Choose the Distribution Method: By Value (more expensive lines take a larger share, usual for customs duty) or By Quantity (each unit takes the same share, usual for freight of similar goods).
- Check the Allocation Preview: per item, the received, consumed and remaining quantity, the amount allocated, and how much goes To Inventory and To COGS. You can adjust the amounts per line, as long as they add up to the amount to allocate.
- Confirm. Repeat for the other expense bills.
The Applied Allocations list on the tab shows what has been added to each item.
Goods already sold
If some of the goods have already been sold, their share of the cost can't go into stock any more. Fiscal posts it to cost of goods sold instead (a catch-up adjustment), and the rest increases the value of the stock still on hand.
If the expense bills are in a different currency from the purchase bill, enter each amount in that expense bill's own currency. Mixing currencies in one allocation is best avoided.
Undo an allocation
Click Cancel This Allocation under Applied Allocations on the bill's Landed Cost tab. The amount becomes available on the expense bill again.