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)
***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.
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
2. Set landed Cost categories
3. Set up your item record that you want to attach landed cost
4. Create a landed cost item to use when you create a separate bill for landed/shipping cost you received from your shipper.
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)
***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)
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