Landed costs are the additional costs incurred in getting goods you purchase from your supplier to your premises. The total cost of a landed shipment includes the purchase price of the goods, freight costs, insurance, warehousing and other costs. In some instances, it may include customs duties and other taxes that may be levied on a shipment.
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Knowledge of the purchase price and the landed costs is critical in understanding the true value of your stock. You need to know the total cost to set the selling price in order to determine your profit margin.
If you create a Landed Cost Type you don’t have to enter a default Value or Percentage; these fields can be left empty. The values can therefore be entered for these Landed Cost Types when stock is received.
When creating a Landed Cost Type it is also possible to assign a Nominal Account Code. The Nominal Ledger will be updated with these landed costs when transactions are posted against stock items which have landed costs assigned to them.
Within Opera 3 Stock Control, if an item is subject to landed costs then it is possible to assign up to four Landed Cost Types to that stock record. The sum of these Landed Cost Types will be the additional costs incurred when buying this item from a supplier.
For stock records, the Average or Standard Landed Cost prices are displayed together with the Last Landed Cost Price. This information is also displayed on each warehouse, if warehouse pricing is in use. The Last Landed Cost Price is maintained by the system and updated when stock receipts are posted.
When a Purchase Receipt is entered the system displays the estimated landed costs. Both the unit cost and the estimated landed cost are used to calculate the total cost of that receipt. The value of the landed cost can be altered by overriding the values on each of the Landed Cost Types assigned to that stock record.
A new Landed Costs report is available that displays the landed costs recorded when stock receipts were posted into the system. A Landed Costs Settings report displays information about stock items that have Landed Cost Types assigned to them.
The Stock Valuation report, Issues report and Record Sheet report now all display landed costs information, as do the Stock Views and Monitor Companies.