Landed costs refer to any costs associated with the shipping, handling and importing of stock items on purchase orders. These additional costs are often invoiced separately, for example, by a courier. They may span multiple purchase orders.
In Sage 200 you can:
- Charge landed costs as a set amount, or as a percentage of the order line.
- Choose whether stock items use landed costs by default.
- Apply landed costs whenever you use a particular supplier.
Setting up and entering landed costs
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:
See an example
- 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.
- 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.