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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.


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7 Comments
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 1

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

@paulc4 

They have acquired one app last year with the feature to calculate the landed cost. You may integrate it with your QBO account.

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

https://www.youtube.com/watch?v=b-jhu1kfZlM

 

 

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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 1

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.