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Landing Costs for Shipping Consolidations

The cost of the purchase price of a physical item, plus landing costs (freight, insurance and duties/taxes) is known as the Landed Cost.

Vinsight has no features that calculates landed cost for you, so you will need to do this manually every time you land a new container or shipment.

How to record this in Vinsight:

Items Purchased

Create a Purchase Order to the supplier of the product you are purchasing and code that Stock Item to a current asset account.
When you post this to your accounting system, your value will only reflect that of the product itself.

Extra Costs -Landing Costs

If you want all the Landing Costs (freight, insurance, dunnage, duties, taxes etc) to also become part of the valuation of the product you are buying then you need to capitalise those costs to an asset account.
To do this create a Purchase Order to the supplier of each of those services or items, and code those to the same current asset account as Stock Item that you are buying.

When the product is delivered you will need to manually work out the Landed Cost of the product by taking the extra costs and calculating an apportionment to the physical products purchased.

Example of manually calculating the Landed Cost
Landing Costs posted to accounting system:
Duty $10
Freight $50
Total extra costs $60

Items Purchased posted to accounting system:
2 x Dozen Pinot gris @ $100 = $200
4 x Dozen Chardonnay @ $80 = $320
Total = 6 Dozen = $520

Total posted to accounting system: $580

$60 extra costs divided by 6 Dozen = $10 per dozen extra cost.

The above share of cost is divided by the number of boxes in the delivery, but you could do the share by weight or value if you wanted to.

New Item Valuations:
2 x Dozen Pinot gris @ ($100 + $10) = $220 =$110 per unit
4 x Dozen Chardonnay @ ($80 + $10) = $360 =$90 per unit

Edit each Stock Item in Vinsight to use the new Standard Cost per unit.

Total valuation in Vinsight: $580