Calculating Landed Cost with Acctivate

Entering Landed Costs in Acctivate

Acctivate offers two primary ways to enter landed cost, depending on whether the additional fees come from the same vendor as the purchase order or a separate vendor. This flexibility allows you to handle different purchasing scenarios accurately.

Option A: Landed Cost from the Original Purchase Order Vendor

Sometimes, the vendor you purchased your inventory from will include extra costs, such as freight or insurance, on the same invoice. In Acctivate, you can seamlessly incorporate these additional costs when invoicing the purchase order.

As you process the invoice, you simply record these fees using the “Add Expense” window and mark them as landed costs. This ensures the extra charges are added to your inventory value rather than treated as regular expenses.

Acctivate then prompts you to allocate these costs across the items in the purchase order. By doing this, your inventory values and Cost of Goods Sold (COGS) reflect the true cost of bringing the products into your business. This method streamlines the process and helps you maintain accurate financial records without extra steps.

Option B: Landed Cost from a Separate Vendor

In many cases, additional costs like shipping fees, customs duties, or handling charges come from vendors other than those supplying your inventory. Acctivate makes it simple to handle these separate costs through the Landed Cost function.

You start by creating a new Landed Cost session and entering the vendor’s details and associated costs. Acctivate allows you to link these costs to specific inventory transactions, such as receipts, transfers, or purchase orders. This flexibility is beneficial when a single bill covers costs for multiple shipments or inventory movements.

Once you’ve linked the costs, you can allocate them across the relevant items. Acctivate ensures these expenses are incorporated into your inventory valuation accurately, giving you a complete and precise picture of your landed costs.