For an accurate valuation of your stock costs.
Landed Costs (LC) are the additional costs incurred in getting goods you purchase from your suppliers to your premises. Knowing your landed costs helps improve costing and accountability when purchasing stock, particularly from overseas suppliers.
The total cost of a landed shipment includes the purchase price of the goods as well as freight costs, insurance, warehousing and, in some instances, customs duties and other taxes that may be levied on a shipment. These costs can be posted to the Nominal Ledger to ensure more accurate Profit & Loss and Balance Sheet reporting.
LC are also included on the various stock-related processes such as the Stock Valuation Report, to provide a more accurate picture of the value of your stock. Knowing both the purchase price and the landed costs is critical, because the total cost needs to be linked to the sales price so that you know what your profit margin will be.
If you wish to use LC, the option can be activated within Company Profiles in Opera 3. This option is only enabled if you use both the Stock Control and Purchase Order Processing applications.
Landed Cost Types
LC Types are key to the operation of LC; they define the individual LC elements that can be assigned to stock records, which are used to build up the total LC for that item. These codes provide a flexible way of defining the values of your LC. The default value can be left empty, so that the value of the LC can be entered when stock is received, providing even more flexibility in assigning LC values. You can also specify a Nominal Account Code. You only need to do this if the Nominal Account Code on the LC Groups or in the Nominal Ledger Set Options is not correct for this type of LC, providing flexibility in the way these costs are analysed in the Nominal Ledger.
Landed Cost Groups
LC Groups are optional but it does make it easier to operate LC if groups are used. LC Groups allow you to group together different LC Types for data selection and reporting. For example, you might have a number of LC Types for different types of freight, such as road/rail/sea/air. You could link these LC Types into one group called “Freight”, so you can report on these LC either individually or under the Freight group. It is also possible to assign a Nominal Account Code to a LC Group. LC Types inherit the Nominal Account from the LC Group. This means that you don’t need to assign this Nominal Account Code individually to each LC Type, so creating these items is faster and you are less likely to make mistakes.
“Opera 3 Business Software has given us the ability to take full control of all aspects of our company, helping us move forward and grow at the same time.”
Joey Barfe, Operations Director, Ibonhart
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