To accurately determine the “true” cost of an item, there are other fees and charges incurred upon receiving the items that must be considered (this goes beyond the original price imported from a regular supplier). These extra fees may be in the form of shipping costs from an overseas supplier, brokerage or logistics fees, insurance charges, customs, taxes, currency conversion, handling fees, etc are called landed costs. Retailers may add these extra charges on top of the original price of the item.
You can add landed costs in the bill forms in Connected Business on the fly. To add a landed cost, go to the Supplier module. Select Bill > New Bill, select an active supplier from the Supplier tab or select an existing GRN from the GRN Awaiting Bills tab. Click on the Landed Costbutton from the menu options to apply the landed cost.
There are two options by which you can apply landed cost for an item:
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By Item Value
The Landed cost will be distributed across the confirmed quantity with the confirmed price for each item on the line item. This means that for each line item the value (added to the total gross) is just the ratio of the total price against the total gross.
By Item Weight
The Landed Cost will be distributed across the confirmed quantity with the given weight of each item on the line item. This means that the landed cost is dependent only upon the weight of each of the items and the value (added to the total gross) is just the ratio of the weight against the total gross.
Thanks for reading this blog! For more information on the computation of , you may refer to the Landed Cost online documentation.