Say goodbye to your archaic spreadsheets....
Landed costs are the total cost of an imported shipment including, but not limited to:
- the purchase price
- Customs duties
- other costs up to the port of destination
To know the true cost of an imported product, you must properly calculate and apportion your landed costs.
Calculating landed costs can be complex, and in the majority of cases small to medium sized businesses are calculating these costs using formulas in a spreadsheet. This approach is time consuming and prone to human error. Over the past few months we have been working hard on a solution to solve this problem.
Today, I am pleased to announce that over the next month we will be releasing our Landed Cost Manager, a solution that can automatically calculate and apportion landed costs to inventory items on a purchase order.
In summary our Landed Cost Manager supports the following:
- Add multiple costs from multiple suppliers to a single purchase order (eg: freight, insurance, duties)
- Automatically apportion costs by orderline value or qty of orderline
- Native integration with Xero (map to relevant cost of sale accounts in Xero)
It will be rolled out in two phases:
Phase 1 (rolling out this week):
Local supplier landed costs, (codename: simple landed costs) includes the ability to add an expense line from the same supplier as your products in a Purchase Order (such as a delivery fee). This can be expensed directly to Xero or apportioned (by quantity or value) to your order lines as landed costs.
Phase 2 (rolling out in August):
Foreign supplier landed costs, (codename: advanced landed costs) includes the ability to add multiple expense lines from a variety of suppliers that differ from the supplier that you order your products from. These can be also be expensed directly to Xero or automatically apportioned costs (by quantity, value, weight or cubic volume) to your order lines as landed costs.
If you want to ensure accurate costing of your imported products, automate an otherwise manual process and easily identify and report on landed costs moving forward, you should sign up to Neto Advanced Inventory to gain early access to this exciting new feature.
Landed Costs UI Preview:
Note the new expenses section below the Purchase Order Lines and the new Landed unit cost column...