Shipping Costs (Landed Cost) |
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Adding Shipping (Landed) Costs
Including shipping and landed costs in the average cost calculation provides a more accurate stock valuation. To add these costs:
1. Go to the Shipping and Other Costs tab.
2. Enter various costs, such as: Freight Charges, Customs Duty, Customs VAT, Handling Fees, and Other Costs.
These costs are totaled and proportionally allocated to each item based on:
•Value
•Weight
•Manual allocation
The preferred allocation method can be selected in the Stock Options Form. Can also be changed in the GRNs Extra tab.
To exclude an item from shipping cost allocation, enable the Exclude From Shipping Cost Allocation option in the Stock Main Form under the Additional Info tab.
Example: Landed Cost Calculation (Value-Based Allocation) •Exchange Rate: 8 •Total Additional Costs: R500 |
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Item |
Cost ($) |
% of Total Cost |
Add. Cost (R.c) |
Landed Cost (R.c) |
Item A |
$10 |
0.80 (10/1250*100) |
4 (500*.008) |
84 |
Item B |
$240 |
19.20 |
96 (500*.192) |
2016 |
Item C |
$1000 |
80.00 |
400 (500*.8) |
8400 |
Total |
$1250 |
100.00 |
500 |
10500 |
Customs VAT.
•Customs VAT Code: ICU VAT 100% (Ledger > Tax Setup)
•This VAT code is specifically designed for imported goods.
•When applied in the Shipping and Other Costs tab of the GRN:
•It does not affect the landed cost.
•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.
