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sychan
Level 3

To include Inbound freight charges in the landed cost

I would like to seek advice about how to input inbound freight charges as part of the total product landed cost.

I saw in a previous discussion with a solution and I'd like to verify the steps.

 

1. Purchase Order issued to supplier and already Paid (in foreign currency)

2. Inventory qty and value has been updated.

3. Pay the inbound freight charges (bill) and use a Clearing Expense account for the transaction.

4. Edit the original bill of PO payment

  • Increase the amount for each item by distributing the freight charges.
  • Change the account details under Category, select the clearing expense account, enter the amount of freight charge amount as a negative number
  • Save the edited bill.
  • The clearing expense account should become zero balance.
  • The product cost will be updated automatically.

My questions:

Both my PO and inbound freight charges are in foreign currency.

1. When edit the PO bill, increase the amount of each item can only be in original currencies, correct?  The system will apply the precious payment rate of exchange, correct?

2. Change the account under Category details --> currently it is marked as Purchase, therefore I should change Purchase into the Clearing Expense Account? For the amount, shall I put original currency or the paid local currency?

 

Please advise.  Thank you.

 

SY Chan

23 Comments
BettyJaneB
QuickBooks Team

To include Inbound freight charges in the landed cost

The discussion that you saw contains accurate resolution for this matter, @sychan.

 

Allow me to provide clarifications on your concerns regarding adding inbound freight charges on your transactions in QuickBooks Online.

 

When it comes to your first question, yes, you are correct. Upon increasing the amount of the PO, the currency to be used is the original currency. Transactions that will be entered into the system will be based on its home currency. 

 

In terms of applying the amount, you can use the current exchange rate to convert from the foreign currency to the local one. You can check out the exchange rate online and apply the amount manually on the PO.

 

Moreover, in changing the account on the category detail, you can select any type of clearing account that you want to set up in the chart of accounts. The Clearing Expense Account would be fine. Lastly, for the amount to be used it must be the local currency too.

 

I'd also like to share this reference with you, which talks about the same scenario that you're in. Feel free to read through this link for more insights: How can I allocate shipping and freight costs to the inventory items purchased?

 

Please know that you can always get back to me here if you have any other questions about this or with QBO. I'll be around for you. Have a good one!

Fiat Lux - ASIA
Level 15

To include Inbound freight charges in the landed cost

@sychan 

As another option, consider having an inventory management app to record the landed cost easily. Landed costs not only take into account the purchase cost of the goods but also additional costs like freight, tax levies, insurance etc. Landed costs are the total costs of the entire shipment. All costs involved in the shipment need to be accounted for. This will give you more accurate reporting and better cashflow management. Landed costs will be distributed among the line items in the procurement. You may add landed costs at any point during the purchase order workflow until the order has been partially or fully received.

sychan
Level 3

To include Inbound freight charges in the landed cost

Hello @BettyJaneB 

Thank you for your feedback.  I would like to clarify the followings:

 

Since we purchase in foreign currency, the exchange rate in bill (copied from PO) and Bill paid are different.  The system applied the rate in the Bill for the inventory value (not the Paid Rate) and already booked  under the Expense Account: exchange difference.

 

(1) In order to add the freight into the product total cost,  when changing the Product amount in the Original Currency, which exchange rate QBO will use?    will QBO book the variance under exchange difference account automatically (if the rate is different)?

 

(2) Can I amend the exchange rate of the bill to match the Paid Rate, therefore it will not incur any exchange difference and update the inventory value?

 

(3) In general, can we manually apply a Fixed rate of exchange when preparing PO / Bill? 

 

Thank you for you advise.

 

Best regards,

SY Chan

   

sychan
Level 3

To include Inbound freight charges in the landed cost

@Fiat Lux - ASIA 

you replied to my previous post about a related topic,

 

quote

"I noticed the landed cost is not one of the basic features available in any inventory management app."

 

Please clarify whether any of the APPs provides this feature.

 

SY Chan

Fiat Lux - ASIA
Level 15

To include Inbound freight charges in the landed cost

Intuit has acquired an inventory management app recently. You may find the feature on this app.

https:// go.tradegecko.com/register?code=fiat-lux

 

RCV
QuickBooks Team
QuickBooks Team

To include Inbound freight charges in the landed cost

Thanks for coming back and providing us in-depth details of your concern, sychan.

 

We can turn on the Multicurrency feature in QuickBooks Online (QBO). This gives you the ability to record transactions in foreign currencies to properly track them, as well as exchange rate gains and losses. Also, the Exchange Gain or Loss will calculate by the time you mark the Bill as paid. Then, the value will automatically be calculated based on the exchange rate value. Once you turn on multicurrency, your Home currency is set and cannot be changed.

 

On the other hand, we can create the Freight charge as a service item. Just follow the steps and details in Add product and service items to QuickBooks Online article. Once you decided to enable the Multicurrency feature, you can manually enter the exchange rate when creating the transaction, or use the Revalue currency option. Here's how: 

 

  1. Create the invoice or bill as usual.
  2. Under the Customer or Vendor name field, select the Currency field.
  3. Enter the exchange rate to use for the new currency.
  4. Choose Use for this transaction only or Use for all new transactions in (currency) for (date).
  5. Complete the transaction and press Save.

For more details about this one, see the exchange rate and how it's calculated article. Feel free to visit our Manage inventory page for more insights about managing your inventory, products, and services on your account.

 

I'll be right here to continue helping if you have any other concerns or questions about QBO. Assistance is just a post away. Have a great day. 

sychan
Level 3

To include Inbound freight charges in the landed cost

Dear @RCV @BettyJaneB 

 

Thanks for your reply.

 

Multi currency is already on.

 

As you said, "the Exchange Gain or Loss will calculate by the time you mark the Bill as paid", in the case I am referring to: Change Paid Bill ( update product amount by adding freight  and input negative number in clearing account) --> Update Inventory Value -   can I still amend the exchange rate again even though the bill was paid? the inventory value and Exchange Gain or Loss will be re calculated again?  Please advise.  Thank you.

 

Best regards,

SY Chan

 

MariaSoledadG
QuickBooks Team

To include Inbound freight charges in the landed cost

Allow me to provide you a few information so I can help you amend the exchange rate, sychan.

 

You can delete the bill payment before you can change the rate. To do this, please follow the steps below. 

  1. Click the Expenses menu. 
  2. Go to the Expenses tab, locate the payment.
  3. Click the bill payment transactions.
  4. Click the Clear Payment option to remove the payment.
  5. Click Save and close.

Once done you can change the rate and you'll have to revalue the currency. You'll want to follow the steps provided by @RCV above.

 

For your reference, you'll want to run and customize reports in QuickBooks Online to get the information that you need. 

 

Please touch base with us if there's anything else that you want us to help with. We're always right here for you anytime.

sychan
Level 3

To include Inbound freight charges in the landed cost

thank you @MariaSoledadG 

My issue was solved.  

 

SY Chan

 

HEMIN
Level 3

To include Inbound freight charges in the landed cost

Does there any video to show us how we can input shipping costs to purchase invoices?

HEMIN
Level 3

To include Inbound freight charges in the landed cost

There is also another cost I don't know how to include, which is warehouse expense, for example warehouse rent, security, warehouse services, employess, etc, all this costs shall be added to the goods. How we can add such costs?

 

MichelleBh
QuickBooks Team

To include Inbound freight charges in the landed cost

Hi there, @HEMIN.

 

I'm here to ensure that you're able to add the shipping cost of your products ion QuickBooks Online. 

 

Currently, we're unable to provide any videos about entering shipping costs to purchase invoices. However, I can present you the detailed instructions with screenshots for your reference. 

 

Before that, you can choose either by line item or full amount in entering cost in the sales form. Let me show you how: 

 

Here's how for the full amount only: 

 

  1. Go to the Gear icon, choose Account and Settings
  2. Select the Sales tab, then click Sales form content
  3. Turn on the radio button beside Shipping
  4. Tap Save, then Done

 

After that, let's create a sample invoice to check how it looks like. See the sample screenshots below: 

 

 

Here's for the line item: 

 

  1. Go to the Sales tab on the left side, then choose Product and Services
  2. Hit New
  3. Pick either Service or Non-inventory
  4. Enter a name like shipping cost. 
  5. Leave the other information blank. 
  6. Tap Save and close

 

For more information, check out this article: Adding Products and Services to QuickBooks.

 

You can always access any inventory reports to review the data you've entered into the system. Check out this link for more learning: Use reports to see your sales and inventory status.

 

I've also added articles about handling items, personalizing sales forms, and other relevant matters. 

 

 

 Please let me know in the comment section if you have follow-up questions. I'm always here for you, ready to assists. Keep safe!

HEMIN
Level 3

To include Inbound freight charges in the landed cost

dear @MichelleBh 

Thanks for the explanation it was helpful and everything is went on well.

Another thing which I want to learn, is Inboound shipping cost. How shall I add shipping cost, brokerage cost to the landed goods price? in order to get the exact cost of the goods?

 

DivinaMercy_N
QuickBooks Team

To include Inbound freight charges in the landed cost

Look no further, @HEMIN .

 

I can share options to help you add shipping cost, brokerage cost to the landed goods price. You can either adjust the product price to include the shipping cost or create a new service item to track the shipping cost separately. 

 

Then, to ensure you'll account the transactions accurately, I recommend consulting your accountant. If you're not affiliated with one, use our Find an accountant tool to look for a Pro-Advisor near your area. 

 

Also, QuickBooks makes it easy to track your products and services items that you add to your transaction forms. For the detailed guide, please see our Financial Reports page. 

 

Fill me in if you have further questions about this. I'm just a post away and willing to help you in any way I can. Have a great day ahead. 

Fiat Lux - ASIA
Level 15

To include Inbound freight charges in the landed cost

@HEMIN  

As another option, consider having an inventory management app to record the landed cost easily. Landed costs not only take into account the purchase cost of the goods but also additional costs like freight, tax levies, insurance etc. Landed costs are the total costs of the entire shipment. All costs involved in the shipment need to be accounted for. This will give you more accurate reporting and better cashflow management. Landed costs will be distributed among the line items in the procurement. You may add landed costs at any point during the purchase order workflow until the order has been partially or fully received.

HEMIN
Level 3

To include Inbound freight charges in the landed cost

dear @DivinaMercy_N 

Thanks for the reply

your explanation was helpful, Actually it was more better if the program calculate the landing good cost automatically and also adjusting with the previous existing item when the same item added to the inventory. 

But unfortunatelly that wasn't happened. 

ReyJohn_D
Moderator

To include Inbound freight charges in the landed cost

I'd like to say you're welcome on behalf of my peer, @HEMIN.

The option to calculate and adjust the item's landing cost automatically is a fantastic suggestion! I appreciate your input for this one and recognize your need for this feature. 

 

Thus, I'll guide you on how to send product suggestions. This way, our developers can monitor and consider adding them for the next enhancements.

 

 

Here's how to do it:

 

  1. Click the Gear icon at the top, and then choose Feedback.
  2. Enter your comments or product suggestions, like "I'd like QuickBooks Online to calculate and adjust the inventory's landing cost automatically."
  3. You can also attach a photo to emphasize your concern, and then select Next.
  4. Click Send message when you're ready.

 

You can track your feature requests through our QuickBooks Online Feature Requests website.

 

For more information, please see this article: How do I submit feedback?

 

Also, I encourage you to visit our QuickBooks Blog page from time to time. This way, you can keep abreast with the current news and product developments.

 

By the way, you can customize other QuickBooks features. This way, you can configure the program to work the way you want it to. Please head to this link to get started: Edit company settings.

 

You can always tag me if you need more QuickBooks insights. I'd be glad to give a guide or two. Have a nice day!

HEMIN
Level 3

To include Inbound freight charges in the landed cost

hi @ReyJohn_D 

Provided a good information about giving feed backs

I appreciate your it

thanks

HEMIN
Level 3

To include Inbound freight charges in the landed cost

@ReyJohn_D @MarsStephanieL 

I have another question you may able to advise me. 

Before using QB , I have used another accounting program.  I have made many inovices , and still some inovices are not fully paid. I haven't incldued the unpaid invoices amount in QB, I intered all my inventory items exactly what i have in my warehouse at the begining of the new year. Now when I receive the old payments , how shal I record it to QB? 

 

JasroV
QuickBooks Team

To include Inbound freight charges in the landed cost

I’m more than happy to help and guide you in the right direction, @HEMIN.

 

You can use a Sales receipt to record your old invoice payment. You'll want to ensure the date you received the payment matches the old payment from your old accounting program.

 

The sales receipt is used when your customer pays you immediately for the service and product you sell. Let me show you how in your QuickBooks Online (QBO):

 

  1. Go to the + New menu.
  2. Click Sales receipt.
  3. Select the customer from the Customer dropdown. 
  4. Enter the sales info, such as the payment method and the sales receipt date.
  5. When you're done, select Save and close.

 

You can also check this article for more details: Create and send sales receipts in QuickBooks Online.

 

Let me also add this link that tackles more about how to record payments in QBO: Should I use an invoice or a sales receipt?

 

Additionally, you can also visit our QuickBooks Support page and Video Tutorials to learn your ways around QBO.

 

Don’t hesitate to tag me in your reply if you have other questions or queries in managing your account. You’re always welcome to share them with me. I’m more than happy to help you. Keep safe and have a great day ahead!

sychan
Level 3

To include Inbound freight charges in the landed cost

@ReyJohn_D 

in fact I did try to send feedback before but it didnt work and crashed my session instead.

Please advise if this feature is only applied to US region.

 

SY Chan

Adrian_A
Moderator

To include Inbound freight charges in the landed cost

I appreciate you for trying to send feedback, SY Chan.

 

The option to send feedback is available in all QuickBooks Online regions. We can run some troubleshooting steps to isolate why the page crashed.

 

To start with, let's open QuickBooks on an incognito window. This page doesn't use the existing cache data and helps us confirm browser-related issues. You can use these keyboard shortcuts to open one:

  • Google Chrome: Ctrl + Shift + N
  • Mozilla Firefox:  Ctrl + Shift + P
  • Safari browser: Command + Option + P

If it works, you can go back to a regular browser and clear the cache to delete those temporarily stored files and browsing history. The overtime collection of data can create corruption, however, removing this should fix the issue.

 

You can also use other supported, up-to-date browsers to roll out the possibility of a browser-related issue.

 

You can also visit our Blog to stay updated on our latest and updated features.

 

I'm just a post-away if you need help. Keep safe!

HEMIN
Level 3

To include Inbound freight charges in the landed cost

hi @JasroV 

many thanks for your answer . 

If I use sales receipt, then I shall choose a product/service. May be it is better if I use receive payment instead, becuase I shall not include any items or service. 

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