Landed costs are additional costs that were incurred in order to have the inventory present in your warehouse, these expenses have their own invoices and are not attached to the vendor’s invoice (Import fees, Freight Charges, etc). We make use of POSibolt landed cost functionality to correctly and accurately relate these expense invoices to the products and update the cost for these products accordingly. To Correctly apply a landed cost invoice to a supplier’s invoice we need to make use of two functionalities in POSibolt, Landed Cost Category and Landed Cost Admin.

Landed Cost Category

1. Navigate to Administration > Landed Cost Category.
2. Here we will set up the diffirent landed costs that the business is involved in.
3. Click Search to list the current Landed Cost Categories available, or click the Add icon to create a new Landed Cost Category.

• Category name – Type the new category name, and make sure it is unique and does not conflict with an already created landed cost name.
• Vendor – Select a vendor that is already loaded on the POSibolt system, This is the vendor that produces the Landed Cost Invoice
• Allocation mode. You can decide on what basis you want the landed cost to be calculated :
  • Value. The related costs are distributed according to the value of an item in proportion to the total value of the delivery
  • Quantity. The related costs are distributed according to the quantity of an item in proportion to the total quantity of the delivery
  • Weight. The related costs are distributed according to the weight of an item in proportion to the total weight of the delivery
  • Volume. The related costs are distributed according to the volume of an item in proportion to the total volume of the delivery
  • Payment mode. It is also changing according to the requirements. Options available are After PO, after shipment or after receipt.

4. The category is now created and can be used to apply to Goods Vendors Invoices.

Landed Cost Admin

1. Navigate to Purchases > Landed Cost Admin
2. The screen allows you to apply landed cost categories to specific RG invoices and functions as follows :

• Landed cost category –The drop-down will consist of all the landed cost categories created on the system.
• Vendor Name – Search for the relevant Vendor.
• Shipment Number – Enter the shipment number of the PO for which you want to generate the landed cost amount for.
• As you type the shipment number in the text box, the existing shipment number (along with the vendor name and date of the PO) will be highlighted. Select the appropriate shipment number. 
• In the next 3 columns enter the Amount of landed cost, Description, and Date.
• Click on Date, a small calendar will pop up, select the relevant date
• Details of the vendor will also be visible on the right side of the page.

3. Click on complete, the Landed cost will be created for that particular PO and the cost of all the items in the PO will update according to the allocation rule set in the Landed Cost Category.