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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 09-26-2019

Accepted Solutions
Level 15

@ intuitMaryL Landed cost has nothing to do with mark up,...

@ 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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2 Comments
Level 15

@ intuitMaryL Landed cost has nothing to do with mark up,...

@ 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

Moderator

Landing cost expenses is unavailable in QuickBooks, hashm...

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.