Shipping Costs (Landed Cost) |
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Adding Shipping and Landed Costs
Shipping costs or landed costs can be added to the average costs, giving you a more accurate stock value. To add these costs:
1. Click on the Shipping and Other Costs tab.
2. Add various costs, such as Freight Charges, Customs Duty, Customs VAT, handling, and other costs.
All of these additional costs (Freight, VAT, Duties, etc.) will be totaled and allocated proportionally to each item on the order according to value, weight, or manually. Select which method to use in the Stock Options Form.
You can exclude an item from shipping cost allocation by selecting Exclude From Shipping Cost Allocation in the Stock Main Form, under the Additional Info tab.
Example of how the landed costs are worked out based on the value of the item. Exchange rate is 8 and the total additional costs are R500 |
|||
$ |
% of Total |
Add. Cost (R.c) |
Landed Cost (R.c) |
Cost Item A: $10 |
0.80 (10/1250*100) |
4 (500*.008) |
84 |
Cost Item B: $240 |
19.20 |
96 (500*.192) |
2016 |
Cost Item C: $1000 |
80.00 |
400 (500*.8) |
8400 |
Total $1250 |
100.00 |
500 |
10500 |
Customs VAT.
Customs VAT Code: ICU VAT 100% (See also Ledger > Tax Setup)
This code was specifically added to handle the Customs VAT for imported goods. If you use this VAT code on the Shipping and Other Costs tab in the GRN, it won't affect your Landing Cost, and the total VAT amount can be claimed back.
Type the Customs Vat (ICU) amount in the Amt. Incl. column.
See image below
Note:
Set the default currency in which you work in Company > Application Options.
