Here are the steps that we can follow to create a landed cost bill and link it to an item you purchased via item receipt.
Landed Cost Guide:
1. Enable landed cost
- Setup > Company > Enable Features > Items & Inventory > Inventory
- Landed cost = checked
2. Set landed Cost categories
- Setup > Accounting > Accounting List > New
- Select Cost Category
- Set the Name, Expense Account ex: Shipping Expense, Cost Type=Landed
- Then save
3. Set up your item record that you want to attach landed cost
- List > Accounting > Items
- Select the items you purchase where you want to track the landed cost
- Click edit > Purchasing/Inventory tab > Track Landed Cost = Checked
- Then Save
4. Create a landed cost item to use when you create a separate bill for landed/shipping cost you received from your shipper.
- List > Accounting > Items > New > Other Charge For Purchase
- Name the item accordingly ex: Shipping-Landed Cost, Insurance-Landed Cost
- Accounting tab > Expense Account=set the appropriate expense account you use for shipping/handling
- Note: Please ensure the account used on he landed cost category (step#2) is the same expense account used here
5. Create the transaction
1. Enter the PO / Bill for the item you want to purchase or already purchased, receive the item the usual way.
2. Enter/record the bill for the shipping of the item (separate Bill)
- Transactions > Payables > Enter Bills
- Fill up the necessary fields
- Go to Items & Expenses tab>Items
- Use the Landed cost items we created in #4
***Crucial step is selecting the landed cost category on the bill line item (this is important
to make the bill appear on the landed cost field of the item receipt)
- Then save the bill
6. Attaching the shipping bill/cost to the item receipt/bill you have purchased.
Note: if the a bill was directly (without PO and Item Receipt) created to record the item purchased, the landed cost it linked on the Bill>Landed cost
- Go to Purchase order of the items purchased>Related Records>Receipts & Bills
- Open the associated item receipt
- Click Edit
- Go to Landed Cost tab>Find the cost allocation field that you created on #2
- Source=Other Transaction
- Transaction=Select the separate bill for shipping that you have created in # 5.2 ( see screenshot below)
- Then Save.
- Go back to Item receipt and see the GL impact, notice that the shipping fee will now be included.