Posting Landed Costs to the Nominal Ledger
Landed Cost is the total cost of a product once it has arrived at the buyer’s door. The list of components that are needed to determine landed costs include the original cost of the item, all brokerage and logistics fees, complete shipping costs, customs duties, tariffs, taxes, insurance, currency conversion, crating costs, and handling fees. Not all of these components are present in every shipment, but all that are must be considered part of the landed cost.
Where method of valuation is Fixed Weighted and Stock Update to Nominal is on, you can post any Landed Cost values from POP and stock movements in to the Nominal Ledger.
Please note that this feature only applies where Method of Valuation is Fixed Weighted.
This feature is designed to meet the following scenarios:
You have received stock where Landed Costs are applicable. The Invoice is posted where invoice value matches receipt value; and
You have received stock where Landed Costs are applicable. The Invoice is posted where invoice value does not match receipt value.
These changes effect the following areas in the software:
Sub Analysis record
You are able to specify the Analysis records to be updated for each Landed Cost line, in order that you can ensure the correct Nominal Accounts are updated based on the type of Landed Cost being applied; also, you can copy Landed Cost Analysis Defaults when creating a new Sub Analysis record so that you don't have to manually apply the Analysis defaults to each new Sub Analysis record.
Importer
The Import template for Sub Analysis records has been extended to allow you to specify the Analysis records to be updated for each Landed Cost line of a Sub Analysis record.
Transactions
When you have Update Stock to Nominal enabled and Method of Valuation set to Fixed Weighted, and where Landed Costs have been incurred, the Nominal Ledger is updated so that all costs associated with the purchase/ movement of stock are reflected on the Balance Sheet:
when receiving stock via a Purchase Order;
when receiving stock via an Inwards Stock Movement (including Stock Take Movement In);
when transferring stock from one Sub Analysis to another;
when receiving stock on a SOP Credit Note;
when posting a Landed Cost type Stock Movement.
When stock is received and the Nominal Ledger is updated with the value of that stock, a second Stock-type journal is generated for each Landed Cost line, with the Landed Cost value posted to the Nominal accounts updated by the analysis record specified for that Landed Cost line
When stock is invoiced on a Purchase Order, on completing the invoice, any difference between invoice and receipt value is posted as an adjustment.
When posting a Landed Cost type Stock Movement:
The Do not update Nominal option does not affect outwards movements. Where the Landed Cost Adjustment is making a correction to an overstatement of the Landed Costs, you will have to manually enter an adjustment to the Nominal Ledger.
the Do not update Nominal transaction option is pre-selected where Stock Update Nominal is on and method of valuation set to Fixed Weighted;
the total value of the movement is posted to the Nominal Update accounts specified on the Stock Movement In analysis specified for the Landed Cost line.