Thank you for your question, akhilt17. QuickBooks Online Plus (QBO) does not have a built-in feature to automatically allocate automatically landed costs (such as CIF charges) to inventory value proportionately. QBO uses the average cost method and calculates COGS based on purchase transactions (bills, checks, expenses) that include inventory items.
To proportionately allocate CIF charges, calculate the appropriate amount for each inventory item based on its value or quantity in the shipment. Ensure the total allocated matches the CIF costs.
When entering a bill for imported goods, you can record the CIF charges as additional expense lines in the same bill. Instead of selecting an expense account (e.g., "Freight"), choose the Inventory Asset account as the category. This process increases the overall value of your inventory.
Alternatively, you can enter the purchased inventory items at their base cost and create a separate bill or expense for the CIF charges, posting this bill to a freight/shipping expense account. Keep in mind that this method will not increase the inventory value; instead, the CIF charges will be recorded as shipping expenses.
To ensure correct handling of CIF charges in line with your business’s accounting practices, we recommend consulting your accountant for guidance.
Please let us know if you have additional questions.
