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, by a courier, for example. They may span multiple purchase orders.
You can specify whether the landed costs are charged as a set amount or as a percentage of the order line.
To include landed costs on your purchase orders, you must select Use landed costs for the relevant product group. The stock items in the product group are set to use landed costs by default. You can change this on individual stock items or when the purchase order is entered.
You can choose whether individual stock items use landed costs by default. You can also apply landed costs whenever you use a particular supplier of the stock item. When a purchase order is entered for the designated supplier, the landed costs are added to the order by default.
- A landed cost tab is displayed for each product group.
When the purchase order is invoiced, the landed costs are:
Added to the value of the order and posted to the Stock nominal account specified for the stock item.
Added to the cost price of the stock item.
If you are using the standard costing method for your stock items, see How landed costs are posted.
- Posted to the landed costs nominal account specified in the stock settings.
To use landed costs
Open: Stock Control > Utilities > System Set Up > Stock Control Settings | Landed Costs.
- Select Use Landed Costs.
- Enter the Nominal Code that you want to post the charges to.
You cannot clear this setting if there are Live purchase orders listed in the Purchase Order Processing module.
If you clear this setting after it has been in use, all shipping and handling costs set on stock items and item suppliers is set to zero.