Landed costs

A landed cost adds extra purchase costs — freight, customs duty, clearing and insurance — to the value of the stock items you bought, so each item's cost reflects what it really cost to bring it in. You pick the purchase order or bill the goods came on, enter the extra costs, and SolaCount spreads them over the stock items and moves the amount into inventory.

Where to find it

• Sidebar: Purchases → AP (Purchases) → Documents → Landed Costs (URL /ap/landed-costs).
• Requires the landed costs feature in your plan.

When SolaStock is your inventory system

If your organization is connected to SolaStock and SolaStock is the inventory authority, landed costs are created there. Opening New Landed Cost in SolaCount (the button on the list, on the Purchases Overview, or the address /ap/landed-costs/create) takes you straight to SolaStock's new landed cost screen (/landed-costs/new); saving, posting or voiding a landed cost in SolaCount is refused with "SolaStock is the inventory source". SolaStock revalues the received stock and delivers its journal, which credits the Landed Cost Clearing account. You can still view existing landed costs. See SolaStock purchasing.

Code the freight or customs supplier's bill to the Landed Cost Clearing account on a bill account line (it is offered there for connected organizations), so the clearing account nets to zero once SolaStock posts the landed cost. Example: Dubai Freight Services LLC bills AED 800 + 5% VAT coded to Landed Cost Clearing (Dr Landed Cost Clearing 800, Dr Input VAT 40, Cr Accounts payable 840); SolaStock's landed cost of AED 800 then posts Dr Inventory 800 / Cr Landed Cost Clearing 800 (part goes to cost of goods sold if some of the units were already sold). See Bills.

The landed costs list

Search by reference, PO or bill number, filter by status and date range.

How it fits with bills

1. Post the supplier bill for the goods as usual — stock lines go to inventory.
2. Post the freight forwarder's or customs bill (or expense) to an expense or clearing account, for example "Freight & duty clearing".
3. Create a landed cost that credits that same clearing account and debits inventory. The clearing account returns to zero and the cost sits on the items.

Create a landed cost

1. Click New Landed Cost (top right of the list).
2. Section 1. Source:

Choose exactly one source: "Select exactly one source: Purchase Order or Bill."

3. Add the extra costs in the cost lines table — one row per cost:
   • Expense/Clearing Account (required, active and postable) — the account the original freight or duty bill was posted to.
   • Description (optional; defaults to "Landed cost line").
   • Amount. Use Add Cost Line for more rows and Remove to delete one. Total Additional Cost updates as you type and must be above zero.
4. Currency and Exchange Rate (to base) — defaults to your base currency; set the rate if the costs are in another currency.
5. Notes (optional).
6. Click Save Draft or Save & Post at the bottom.

The allocation to items is calculated when you save; open the landed cost to see the Allocation Breakdown.

Allocation methods

Only stock (inventory) items on the PO or bill take a share; service lines are ignored. A source without stock items is refused: "Selected bill has no inventory items for landed cost allocation."

Post

On a draft landed cost, click Post (or use Save & Post). Posting checks that:

• there are allocations and the total is above zero,
• Additional Cost Lines total = allocations total = header total ("Total allocations must equal total additional cost."),
• every item has an inventory asset account ("Inventory item '…' is missing an inventory asset account."),
• the same allocation has not already been posted,
• the exchange rate is above zero.

The journal is posted and each item's inventory value is raised by its share, which updates its average cost.

Void

Click Void on a posted landed cost. SolaCount posts a reversal journal entry, removes the value from the items and marks it Void ("Landed cost voided successfully. Reversal journal entry created."). Only posted landed costs can be voided; drafts can be edited instead ("Only draft landed costs can be edited.").

Worked example

Al Noor Trading LLC imports 100 LED panels (bill BL-7781, AED 120 each, AED 12,000) and 50 ceiling fans (AED 240 each, AED 12,000). It also pays:

• Freight: AED 1,500 (freight forwarder's bill posted to "Freight & duty clearing").
• Customs duty: AED 1,200 (posted to the same clearing account).

New landed cost: source BL-7781, method cost, two lines totalling AED 2,700 against "Freight & duty clearing". Assuming the items' current unit costs are their purchase prices, both have the same value (AED 12,000 each), so each takes AED 1,350.

(Both debits go to the items' inventory asset account; if they share one account, the journal shows a single AED 2,700 debit.) If these are the only units in stock, the unit cost of an LED panel rises from AED 120 to AED 133.50 and a fan from AED 240 to AED 267.

With quantity instead, the split would be 100:50 — AED 1,800 to panels and AED 900 to fans.

VAT on the freight and customs bills is handled on those bills (import VAT is usually reverse charge — see Bills); landed costs move net costs only.

Effect on AP

None. A landed cost does not create or change anything owed to a supplier. The freight and duty bills carry the payables and age in AP aging as usual.

Permissions

Tips

• Post the goods bill before the landed cost so the item costs are in place.
• Use one clearing account for import costs and check it returns to zero after each landed cost.
• Choose weight for bulky goods only if every item has a weight.

Related

• Bills
• Purchase orders
• Inventory
• Chart of accounts