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Basmtak Books
Purchases and expenses

Spread landed costs over your goods

Add freight, customs and insurance to the cost of the goods themselves, so you know their true cost and your true profit.

5 min read 5 steps Open this screen in Books
This feature comes with certain plans. If it is not in your menu, it is not in your business's plan.

Why landed cost?

If goods cost you 1,000 and freight another 100, they really cost 1,100. A landed cost moves freight, customs and insurance into stock rather than expenses, so the item's average cost rises and cost of sales is right when you sell.
Charges are spread over stock lines only, and are entered in riyals.

Start from the document

Open the posted bill or goods receipt and press Landed cost, and the document comes filled in. Or on the Landed costs tab press New landed cost and choose the Kind and the Document. If the bill came from a goods receipt, put the cost on the receipt itself.

Add the charges

Press Add charge (2) for each cost and choose where it comes from:

  • Supplier bill line: for a forwarder's bill already recorded. The line's amount moves from expense into stock.
  • Already paid: a cost paid outside a bill. Under Credit account choose the account it was paid from.
  • To be paid (accrual): a cost not yet invoiced, such as customs duty. Choose a liability account such as accrued expenses.
Add the charges

Choose how to spread them

Under Method (1) choose:

  • By value: each line takes its share of the goods' cost.
  • By quantity: each unit takes the same amount.
  • By weight: type each line's weight in any unit; only the ratio matters.

Press Preview allocation to see, in the Allocation table, what is Allocated to each line and the rise Per unit.

Save and post

Press Save and post (3), or Save draft to finish later. Posting lifts the cost of the goods in stock and records one journal.
The journal Books posts for you
AccountDebitCredit
Inventory2,500.00
Accrued expenses2,500.00
Posting changes item costs and the ledger. To undo it, open the landed cost and press Void: its journal is reversed and the goods give the cost back, dated today.
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