Landed Cost distributions

started a topic over 5 years ago

While landed cost Expenses - freight, insurance, duties, etc - can be allocated to Invoices

It will be nice to also be able to allocate the allocate Expenses of Invoices to Products

This feature will allow us to get a more accurate Product costing

12 people like this idea
  • My formula for working out actual landed costs on good is they following...

    Total invoice amount in AUD + landed charges (duty/freight/insurance etc..) Divided by the original invoice amount is whatever currency you bought it in (USD/EURO etc) This will give you a factor multiplier that you can use to multiply the original suppliers invoice line amount by the factor.


    10 x Machine Part A @ 250 Euro each = 2500 Euro

    5 x Machine Part B @ 150 Euro each = 750 Euro

    Total invoice amount = 3250 Euro

    Paid amount in AUD = 5240 AUD

    +Freight = $700 AUD

    +Duty = $400 AUD

    +Insurance = $100 AUD

    = $6440 AUD / 3250 (original supplier amount) = 1.9815

    Landed Costs

    10 x Machine Part A @ 250 x 1.9815 = $495.375 each $4953.75 Total

    5 x Machine Part B @ 150 x 1.9815 = $297.225 each $1486.125 Total 

    You may have to some tweaking as it's hard to get the line total to equal exactly what you got with your multiply factor as Dear only lets you adjust the line amount and not the line total which is a pain.

    Lastly the GST portion can be entered into the services section on the PO as Import tax, you will need to multiply it by 10 with "GST on Expenses" and then create anther line of the same but with negative the same amount and "GST free expenses". This will put the correct GST amount in.

    This may seem a little complicated but it really isn't once you've done it a few times... Gives me accurate costings on all my inventory which is very helpful.

    2 people like this
  • thanks Danny.  this is what we also do.  except in situations wherein the Duty rates are different for each product groups the current set up does not allow allocation to individual products for a more accurate landed cost

    for example machinery may be 1% duty while spare parts may be 3% and accessories is 7%

    2 people like this
  • Hi Dear

    We are an import company and import goods into South Africa.However we have certain items that attract  customs duties and some that don't on the same order.We used to use Sage one and this provides a seamless solution where you can enter costs per line item without any hassles.This is creating major issues and workarounds for us in DEAR which I feel is a major let down from DEAR's side as I am sure I am not the only importer using this system.Please can you urgently look at adressing this.I happy to share more info etc.I have placed a screenshot below of the way Sage one offer it.You can manually add the individual costs to the individual line items and then you load the total additional costs invoice in at the bottom.


    4 people like this
  • I am also supporting a firm that imports in South Africa and we are having the same issue. It is important to get accurate landed cost calculation by product. DEAR team, please advise. You advertise that landed cost is supported, but in actual fact in practice it does not yield the correct answer.

    2 people like this
  • We import beer so for best accuracy, we need to allocate cost by volume (e.g. liter). Alcohol are also dutiable so we need to assign different duties to each product's landed cost. 

    1 person likes this
  • The ability to add landed costs at a product level is essential in any robust inventory system. The larger cost components of landed cost to allocate is typically duty and shipping costs.  Where orders are placed on vendors for multiple skus the chance of having skus on the one order with varying duty rates is high. In my case I have had different skus on the same order/invoice that were duty free and another attracting 40% tariff.  Likewise shipping costs are typically incurred on a cubic metre measure. Under the current dear assumption a small high cost item will attract the bulk of the landed cost assumption when combined in the same order as a low cost large item.  As you can see from both these scenarios the current dear methodology is insufficient to reasonably apply importing or landing costs to the respective products within an invoice.

    1 person likes this
  • Hi All

    Landing cost calculation task is given high priority. We will keep you updated on the progress


    DEAR Team 

    3 people like this
  • What is the progress with the Landed Cost project as described in this feature request which looks like it is still in "Planned" phase?

    Are there other developments in the Landed Cost area that there has been progress on or that is currently in development?

    1 person likes this
  • It also would be useful to have the average cost of the product PER WAREHOUSE instead of global. If case the company holds the same product if different locations. some have aquired costs during a transfer (overseas, duties, etc) while the untransferred products have yet not

    2 people like this
  • Has any progress been made on providing the ability to produce and report on an accurate COS?  It is fundamental to a stock system that proposes to manage anything but unit quantities and in the UK we need to prove the costs for audit purposes, it unfortunately really lets Dear down 

    2 people like this
  • here is another un-happy customer for not being able to set accurate landed cost per line item.

    for our distribution business, we need accurate COGS and it will help us set our pricing by markup/margin % of the pricing tiers. (otherwise it's pretty unless to have calculated pricing when the COGS are not correct.

    Dear really should looks into this.

    2 people like this
Login or Signup to post a comment

12 people like this idea
Log in or Sign up to post a comment