Freight, customs and landed cost

The price on the supplier's bill is rarely what the goods really cost you. Freight, customs duty, clearing and insurance all add to the cost of getting the goods to your warehouse. Landed cost means the supplier price plus those charges. If you book freight straight to expense, stock looks cheaper than it is and your margin looks better than it is. Zeyto supports landed cost on the purchase invoice through its Charges card.

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Purchase, Expense Types: define freight and customs charges and whether they join the item cost.

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Purchase, Landed Cost: charges spread over the stock lines they belong to.

Charge types

Each kind of charge is an expense type, set up under Purchase, Expense Types (also in Settings). A type says which ledger account it goes to, which VAT code it carries, how much of the VAT you can claim, whether it is added to the cost of goods, and how it is spread by default. The Charges card on the invoice stays hidden until you have a purchase expense type.

Adding a charge

1. Add the goods lines first.
2. In the Charges card, type a charge type such as FREIGHT in the blank row and press Tab. Zeyto fills the description, tax code, cost choice and spread.
3. Type the Amount without VAT.
4. Choose the Payer. Same supplier means the supplier of the goods billed it and it becomes a line of this invoice. Another supplier means a separate company billed it; fill in Billed by and their invoice number. Paid by us means you paid it yourself; pick what you paid with.
5. Leave Add to cost of goods ticked to raise the cost of the goods. Choose Spread by: Value, Quantity, Weight, Volume or Equal. Weight and Volume use the unit weight and volume on the item.
6. Press Save to see the VAT worked out, then Submit.

For a charge billed by another supplier, or paid by you, Zeyto raises a separate purchase bill when you submit; it appears under Charge bills. VAT claim % is the share of the VAT you can claim back; the rest joins the cost.

Charges that arrive late

Open the posted invoice and choose Add charge in More. Zeyto raises the supplier bill and spreads the charge over the goods still in stock. The part that belongs to goods already sold goes to cost of sales, so stock value and profit both stay correct.

Seeing the result

The Landed Cost report (Purchase, Landed Cost) lists each stock line of a purchase invoice with the value before, the charges spread over it, the part sent to cost of sales, the value after and the unit cost after. Click the arrow on a line to see each charge and the document it came from.