Summary
The Landed Cost module in Jiwa is used to calculate a more accurate cost for purchased stock by adding additional costs to the supplier purchase price. These costs may include freight, insurance, duties, quarantine fees, customs charges, handling costs, storage costs, and other import-related expenses.
In this section, we cover how landed costs are recorded, apportioned, invoiced, and finalised in Jiwa. We look at how purchase orders are linked to shipments, how additional costs are added to the shipment, and how those costs are distributed across the received inventory items.
Landed Cost helps ensure that the value of inventory reflects the full cost of getting goods into stock, not just the supplier invoice price. This supports more accurate inventory valuation, margin reporting, cost of goods sold, and financial reporting.
This section is intended to help users understand how to manage landed cost shipments in Jiwa, from linking purchase orders and receiving goods through to apportioning import costs and finalising the shipment.
Note
Landed Cost is typically used where additional costs need to be included in the inventory value of purchased goods. Costs can be apportioned to physical inventory items using methods such as cost, quantity, weight, or cubic, depending on the information available and the business process.
The Landed Cost module is not limited to imported stock. It can also be used for local purchases where additional costs, such as local transport or freight, make up a significant part of the product cost. Including these costs in the final inventory value helps ensure sell prices can be set correctly and margin reporting remains accurate.