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Hashmi01
Level 1

Landing cost expense and purchase price

I import product amount 50,000 and paid landed cost 10,500 including custom duty & freight chgs so how can I record in QB, my product actual cost 60,500/= so what's the best accounting treatment in QB please share in screen sort.

here I discuss my point before but I am not satisfied because if i record landed cost as an expense so how can i get my actual product cost in P&L cost of goods sold account. 

01) I create PO 50,000/= so how can I adjust landed cost expense in my product cost. please share screen sort.

02) when the product sold so the cost of good sold of product amount 60,500/= appear in P&L (please share screen sort)

basically I am confused and concern about landed cost treatment in QB that is a reason I repeated the question.

I am waiting the response.

Solved
Best answer September 26, 2019

Best Answers
Rustler
Level 15

Landing cost expense and purchase price

@ intuitMaryL

Landed cost has nothing to do with mark up, cost is what you pay, not a sales price.


@ hashmi

QB does not have a native way to do landed cost so you have to use a work around

Create an expense account named clearing, and then when the additional bills come in:

1.  Pay the shipping/customs bill or enter the bill and use that clearing expense account as the expense for the transaction

2.  Edit the original bill as follows:
2a.  increase the total amount for each item by a portion of the new bill
2b.  change to the account portion of the bill at the top, select the clearing expense account, enter the amount of the bill as a negative number
2c.  save the edited bill and click though any warning you may get about payments being applied.
2d.  Insure the clearing expense account is zero balance, if not go back and adjust the item totals.

QB will use the edited bill to update the purchase cost.  If any of the items were sold between the original bill and the additional bills, QB will automatically make the adjustment to the COGS account for the change in purchase cost.


View solution in original post

12 Comments 12
Rustler
Level 15

Landing cost expense and purchase price

@ intuitMaryL

Landed cost has nothing to do with mark up, cost is what you pay, not a sales price.


@ hashmi

QB does not have a native way to do landed cost so you have to use a work around

Create an expense account named clearing, and then when the additional bills come in:

1.  Pay the shipping/customs bill or enter the bill and use that clearing expense account as the expense for the transaction

2.  Edit the original bill as follows:
2a.  increase the total amount for each item by a portion of the new bill
2b.  change to the account portion of the bill at the top, select the clearing expense account, enter the amount of the bill as a negative number
2c.  save the edited bill and click though any warning you may get about payments being applied.
2d.  Insure the clearing expense account is zero balance, if not go back and adjust the item totals.

QB will use the edited bill to update the purchase cost.  If any of the items were sold between the original bill and the additional bills, QB will automatically make the adjustment to the COGS account for the change in purchase cost.


View solution in original post

MaryLurleenM
Moderator

Landing cost expense and purchase price

Landing cost expenses is unavailable in QuickBooks, hashmi.

 

You can record it manually as a separate expense. It seems that you want to incorporate the product's amount plus the freight charges. What you can do is to create a markup that can cover the total amount of goods plus the landing cost.

 

Let's say you have 500 items which costs 50,000, then you want to add the landing cost of 10,500 before you sell the product. Instead of selling it for 100 per item, it becomes 121/item.

 

If you have further questions, you can drop a comment.

paulc4
Level 2

Landing cost expense and purchase price

This is by far the most frustrating thing about Quickbooks online. Quickbooks is suppose to save me time but I spend hours and hours allocating freight to multiple inventory items in order to accurately record landed cost. Very frustrating. Please get your developers on this. This is a must for any business that imports or brings inventory in at all for that matter.

Fiat Lux - ASIA
Level 15

Landing cost expense and purchase price

...

useraccount
Level 1

Landing cost expense and purchase price

It cost you more money to integrate this new app - Tradegecko. I've tried the trial version and didn't continue after it expired due to the monthly subscription fee.

paulc4
Level 2

Landing cost expense and purchase price

Yes, I was disappointed to learn that as well. This is a feature that other softwares have incorporated into their base version, for no extra fees, and I’m really hoping for an update from QuickBooks online in the future where landed cost is made available.

Fiat Lux - ASIA
Level 15

Landing cost expense and purchase price

@paulc4 @useraccount 

We may find the landed cost is available on an accounting app as the basic feature. I am not sure Intuit will put it as the basic feature in the near future.

Andzeika
Level 1

Landing cost expense and purchase price

1. Can I set cost price for inventory to be updated automatically after purchase invoice is entered?

Cost price varies every time you buy products these days.

I have hundreds of products in my inventory list. Changing cost price manually every time is simply not doable for me.

2. What is the quickest way to find a real cost of one inventory item?

3. How can I find out under what purchase invoice number an inventory item had been bought. That's to help me find out how much I've paid for an item?

Fiat Lux - ASIA
Level 15

Landing cost expense and purchase price

@Andzeika 

The inventory feature on QBO is limited. Consider having an additional app to manage your inventory.

ReymondO
QuickBooks Team

Landing cost expense and purchase price

Thank you for joining the thread, @Andzeika.

 

Let me help you with your inventory concerns in QuickBooks Online. 

 

Having an option to automatically update the cost of goods is unavailable in the program. For now, you have to manually edit each product in your inventory list to update its actual cost. Here's how:

 

  1. Go to Sales and select Product and services.
  2. Look for the item, then click Edit.
  3. Enter the updated amount in the Cost section.
  4. Click Save and close when you're done.

 

You can also follow the suggestion that was shared by Fiat Lux - ASIA. Simply search for the app in the Apps menu in your QBO account. 

 

With regards to your second concern, you can run the Physical Inventory Worksheet report to find the actual cost of the item. Let me show you how:

 

  1. Go to Reports and open the Physical Inventory Worksheet report.
  2. Click Customize, then select Rows/Columns.
  3. Check the Cost box and select Run report

 

For your last question, you can run the Sales by Product/Service Detail report. This will show you the total sales for each product and service. This also includes the 

date, transaction type, quantity, rate, amount, and total. Just go to the Reports menu and open the Sales by Product/Service Detail report. 

 

Moreover, you can customize these reports to get more info about your business. You can also memorize them to save their current customization settings.

 

If you have any follow-up questions, please comment them down below. I'll be happy to help you out. Happy Thanksgiving to you and your family.

Andzeika
Level 1

Landing cost expense and purchase price

Thanks for your reply. I cannot find Physical Inventory Worksheet in my reports?

 

TirzahC
Level 6

Landing cost expense and purchase price

Let me provide you assistance in running reports in QuickBooks Online (QBO), Andzeika. 

 

The Physical Inventory Worksheet report is only available in QuickBooks Online Plus version. However, if you're using that subscription and unable to see it, let's pull up your QuickBooks Online (QBO) account using a private browser. Some function modules may be affected by outdated cache files, which can slow down and affect QuickBooks functionalities.'

 

Here's how to open it:

 

  • Chrome: Ctrl+Shift+N
  • Firefox: Ctrl+Shift+
  • Safari: Command+Shift+N

 

Once signed in, run the reports again. If it works, return to your regular browser and clear its cache and cookies. However, if you get the same result while using a private browser, I recommend switching to a different browser. 

 

For the complete list and to compare the available reports per QBU subscription, kindly refer to this article: Reports included in your QuickBooks Online subscription.

 

I'm also adding this article to customize your reports to get the information you need and focus on the details that matter most to you. For the step-by-step guide, kindly refer to this article: Customise reports in QuickBooks Online. it also includes details about managing and sharing your custom reports.

 

Please let me know if you have more queries about managing your inventories or anything else related to QuickBooks. I'll be here to lend a hand. Take care and stay safe always.