Landed Costs are calculated from Receiving Transactions (RCT) and Bills (BLL).
When a bill is received from a supplier, you add it to the system as a Bill and link it to any related RCT’s. Before the actual bill is received from the supplier, an Estimate Bill can be created to use as a placeholder and to approximate the cost.
When the actual bill arrives, you can update the BLL with correct values, and change the BLL to Final.
The way that the cost of the BLL is spread proportionally over the linked RCT’s, to influence the Landed Cost, can be set for each BLL using:
• Quantity – use the total quantity of items in the RCT’s
• Value – use the total value of the RCT’s
• Weight – use the total weight of the RCT’s
• Volume – use the total volume of the RCT’s (as defined in item UOM)
With service-based bills, the total cost is distributed based on the Split method. For bills where the cost can’t be divided equally, such as when items have different taxable rates (eg import duties), the bill must be itemised, and the Split method is then used to distribute the cost only across those items in the linked RCT’s.
However, when creating this type of itemised bills, an “Expense Bill” should be used, as it indicates to your accounting software that this is an expense and not COGS.
Creating a Bill
To create a BLL, go to Vendors > Bills, and press New Bill and input the supplier. Input the Bill details, such as due date, currency, and the split option, and press Create.
You can now set whether the BLL is an Estimate or Final and add the BLL line items, eg Shipping for £235. Now we go to the RCT that we want to link to this bill, click “Add Linked Bills”.
We must search for the BLL, so enter the relevant details and hit Search.
Finally we click the BLL we want to add to the RCT (BLL will be green if it is already linked to the RCT).
Voila! You will notice the Landed Price on each line is different to the Price, as the RCT and items are now accounting for the additional costs of the BLL, with the desired split.
