What your purchases really cost once the charges on the bill are added in. The invoice says one thing; freight, duty, excise and a trade discount change it. This report takes each purchase line and shows its base amount, the charges added to it, and the cost per unit that results.
VAT and TDS are shown too, but they are kept out of the cost. VAT you can reclaim is not part of what the goods cost you, and TDS is money withheld from the supplier, not a cost of the stock.
When to use it
- Before setting a selling price, to price off real cost instead of invoice cost.
- When margin looks wrong on an item you know you bought well.
- After entering an Additional Landed Cost voucher, to confirm it reached the right goods.
- To see how much a supplier's freight is actually adding to your stock value.
Before you start
- You need view access to the Procurement reports.
- A charge only lands on stock if its billing term is marked Affects Inventory Cost (Masters > Purchase > Billing Terms). Nothing is marked that way by default. Until one is, every line still appears with its base cost and no charges. That is correct, not an error.
Where to find it
Reports > Procurement > Purchase Landed Cost.
The fields on this screen
| Filter (on screen) | What it does |
|---|---|
| From / To Date | The period of the purchase vouchers. Defaults to the open fiscal year. |
| Item | Show one item only. Leave blank for all. |
| Organization | Show one organization only. Leave blank for all you can see. |
| View | Condensed or Detailed. See below. |
| Column | What it means |
|---|---|
| Base Amount | The line as invoiced, before any charge. |
| Freight / Import Duty / Insurance / Excise / Other Landed | The charges added to this line, sorted by what the billing term is called. |
| Total Landed | All the charges together. Negative when a discount reduces cost. |
| Landed Value | Base Amount + Total Landed. This is what the goods cost. |
| Uplift % | How much the charges moved the cost, as a percentage. Negative for a discount. |
| Landed Cost/Unit | Landed Value divided by quantity. This is the number to price from. |
| VAT | All VAT on the line. Not part of Landed Value. |
| VAT in Cost | The part of that VAT you cannot reclaim, which is inside Landed Value. Usually zero. |
| TDS | Tax withheld from the supplier. Never part of the cost. |
| Total incl VAT | Landed Value plus the reclaimable VAT: what the bill totals to. |
Running the report
- Open Reports > Procurement > Purchase Landed Cost.
- Set the period.
- Pick a View:
- Condensed: one row per purchase voucher, with date, vendor, bill number and the amount columns totalled. Use it to scan a month.
- Detailed: each voucher opens out into its items, with the per-item rate and landed cost per unit. Use it when you want the item detail.
- Read Base Amount against Landed Value to see what the charges did.
How it works
Charges reach a line three ways, and all three show here:
- On the bill itself: a billing term on the purchase voucher, spread across the voucher's lines by value or by quantity, whichever the term says.
- Against one item line: a charge entered directly on a single line, which is not spread.
- On a later Additional Landed Cost voucher: raised after the purchase, linked to it under "Linked Purchase Invoices", and spread across the lines of every purchase it names.
Tips and common mistakes
- Every line appears, even with no charges at all. A row with 0.00 in the charge columns and Landed Value equal to Base Amount is a purchase nobody has added cost to. That is information, not a blank.
- Quantity, rates and Uplift % are only in Detailed. They are missing from Condensed on purpose: adding up rates, or percentages, across different items gives a meaningless number.
- A discount shows as a negative charge. Landed Value below the invoice amount is correct: the goods did cost less.
- Marking a term Affects Inventory Cost changes stock valuation, and so your cost of sales. It is an accounting decision, so speak to your accountant before ticking one.
- VAT will not change Landed Value unless a charge row is marked as non-recoverable VAT. Watch the VAT in Cost column if a figure moves unexpectedly.
- An Additional Landed Cost voucher that is not linked to any purchase reaches nothing. The link is the "Linked Purchase Invoices" section on that voucher.
Related guides
- Purchase Landed Cost (By Term), Additional Landed Cost, Billing Terms, Purchase Invoice, Stock Statement.