Landed cost
Freight, duty and handling carried into what the stock actually cost you.
The supplier invoice is not what the stock cost. Freight, duty, insurance and handling are real money, and on imported goods they are frequently a double-digit percentage.
How it works
- Additional costs are recorded against the purchase order that brought the goods in.
- They are carried into the cost of those goods rather than left in overheads.
- Margin figures then reflect what you actually paid to have the item on your shelf.
Why leaving it in overheads distorts everything
Costs left in overheads make every product look more profitable than it is, and they flatter the wrong suppliers. An overseas supplier quoting ex-works looks cheaper than a domestic one quoting delivered, right up until the freight lands in a different column and never gets attributed.
Getting this right changes buying decisions, which is a bigger effect than the reporting accuracy.
What it does not do
It does not calculate duty for you. Commodity codes and duty rates are a customs question; this records what you were charged and puts it where it belongs.
Stop reconciling stock by hand
One catalogue, six channels, one stock figure that stays right.