Landed Costs

Group: Inventory

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A landed cost adds the extra costs of getting stock to you, such as freight, customs duty, insurance, and handling, to the value of that stock. The charges come from approved vendor bills, and the stock from committed receipts.

Stock comes in on a receipt at its purchase price, and the extra costs are often billed later, on separate vendor bills. A landed cost spreads (allocates) those charges over the lines of committed receipts, so the stock's value includes them. The quantity of the stock does not change. Landed cost items decide which vendor bill lines a landed cost can use.

A landed cost is created as a draft. A draft can be changed or deleted, and its allocation shows how the charges are spread. Committing the landed cost raises the cost of the units still in stock by their share of the charges. For units already sold, their share goes to their after-sale cost instead. The commit does this through inventory revaluations, which it creates and commits. A committed landed cost cannot be changed or deleted, and it has no cancel action.

Every amount on a landed cost is in the functional currency of its legal entity, and is not converted.

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