Landed costs overview

Landed costs refer to any costs associated with the shipping, handling and importing of your stock items that you want to include on your purchase orders.

These additional costs are often invoiced separately, by a courier for example and they may span multiple purchase orders.

In Sage 200 you can:

• Choose whether stock items use landed costs by default.

• Charge landed costs as a set amount, or as a percentage of the order line.

• Apply landed costs whenever you use a particular supplier.

If you want to use landed costs in Sage 200, you need to turn this on in the Stock Control Settings. You set defaults for your landed costs on the relevant product groups, and these are inherited by the stock items in that group. Landed costs can also be applied when using a specific supplier.

Set up and enter landed costs

1. You must first enable landed costs in Stock Control Settings:

   1. Open Stock Control Settings.

   2. Move to the Landed Costs tab, then enable Use Landed Costs.

   3. Select the nominal Code to use for landed cost postings.

   Once you have enabled landed costs, you will see a Landed Costs tab on your Product Groups.

   See Landed costs (stock settings).

2. To set up landed costs for a stock product group:

   1. Open Product Groups and edit your product group.

   2. Move to the Landed Costs tab, then enable Use Landed Costs.

   3. Choose how you want to apply the landed cost as default to new stock items, from either Not applicable, Percentage based, or Value based. This just sets the default for the new stock item, and can be changed on the stock item record itself.

      Note: If you had already linked stock items to a product group before you enabled landed costs, you'll need to amend these stock items to set their landed cost settings.

   Once you have set up enabled landed costs for a product group, you will see Landed Costs settings in the Analysis tab of stock items in that group. You can also apply landed costs to purchase orders for stock items in the product group.

   See Landed costs (product group).

3. To set the default landed cost for the stock item:

   1. Open Amend Stock Item and select the stock item.

   2. Move to the Analysis tab.

   3. Choose how to apply the landed cost for this stock item, from either Not applicable, Percentage based, or Value based.

   See Landed costs (stock record).

4. To set the default landed cost for a particular supplier of a stock item:

   1. Open Amend Stock Item and select the stock item.

   2. Move to the Suppliers tab.

   3. Add a supplier for the stock item, and choose how to apply the landed cost; from either Not applicable, Percentage based, or Value based.

      Each time an order is entered for the stock item from this supplier, the supplier's landed cost settings are used.

   See Choose a supplier for a stock item.

5. When you enter a purchase order for an item, the default landed costs are added automatically.

   But you can change the landed costs on the order by selecting the Landed costs type.

   Note: The landed costs are not included in the total value of the purchase order.

   See Add standard items to the purchase order.

How landed costs are posted

Landed costs are included in the cost price of stock items.

When the purchase order is invoiced:

• The purchase price of the stock item plus the landed costs value is posted to the Stock nominal account specified for the stock item.

• The landed cost value is posted to the landed costs nominal account specified in the Stock Settings.

• The landed cost value is added to the cost price of the item.

  For stock items that use the standard costing method:

  • A standard cost variance is calculated when the cost price of the item on the purchase order plus the landed cost value, is different to the standard cost price specified on the stock item.

    See an example

    • A stock item has a standard cost of £25 which includes a landed cost of £5.

    • You enter a purchase order for the item. The purchase price is entered as £25 with landed costs of £5.

    • As the purchase price plus the landed costs is more than the standard cost price of the stock item (25 + 5 = 30), a standard cost variance of £5 is calculated when you run the standard cost variance routine.