Landing cost

Software: MoneyWorks accounting software

Landing cost are the costs incurred in transporting an item from the place of purchase to your premises. These might be including freight, insurance, duties and more.

–          Page G-248 of MoneyWorks User Guide

Landing cost item is not a stock item; hence, if you used it in the Purchase Order transaction and try to process the order as “Receive goods after invoice”, a warning message will be prompted:

Items must be inventoried

Some items on this order are not inventoried. Receiving stock without an invoice can only be done for inventoried items.

You will only be notified the landing cost by your forwarder after you received the goods. So, at the point of creating Purchase Order to your supplier you may consider to omit the landing cost.

Example:

If your goods cost S$100.00 each (without landing cost) and you purchased 10 units, you should record your Purchase Order as S$1,000.00.

If you need to make an advance payment to your supplier, you can process the order as “Receive prepayment for goods”. When the goods received, you continue process the order as “Receive goods after invoice”. You should unchecked the checkbox for “POST” in the “Receive goods after invoice” window so that you can amend your saved Purchase Invoice with the landing cost.

Open up your saved Purchase Invoice; amend your landing cost as according to the User Guide’s recommendation.

Example:

If your landing cost for this order is $100.00 (that is 10% of the purchase price); at the “Disc. %” column, you add “-10” so to increase the Extension price from the original 1,000.00 to 1,100.00.

Next, add the landing cost item which you have created with a value of “-1” in the Qty column and an Extension price of “-100.00”.

Purchase Invoice:

Item Qty Unit Price Disc. % Extension
Stock 10 100.00 -10 1,100.00
Landing Cost -1 -100.00   -100.00

The total amount for this transaction will be remains as 1,000.00, but the average cost of this item will be 110.00 instead of 100.00 each.

 

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