When purchasing products from a supplier, the product cost usually only includes the purchase price charged by the supplier. However, additional costs such as Freight Costs, Port Charges, Documentation Fees, Import Duties, and other expenses may also be incurred during the purchasing process.
These additional costs can affect the actual cost of the products and may only be known after the purchasing process is completed. Therefore, you may need to recalculate the product cost to determine a more accurate selling price and profit margin.
With the Landed Cost feature in DealPOS, you can allocate these additional costs to the purchased products and calculate their actual cost more accurately.
For instructions on how to create, apply, and view Landed Cost allocations, please follow the guide below.
I. Add Landed Cost Options
Step 1. Go to Setup Menu, Click More Menu, and select Landed Cost
Step 2. Click Add Button
Step 3. Fill the landed cost name and description, then click Save button
Step 4. The success toast will be displayed when the landed cost is successfully created
Notes: In order to use the Landed Cost feature, make sure the COGS Calculation in your Module Buy Settings is set to Average. For more information on how to configure the COGS calculation, please refer to this Help Center article: Setting Up Product's COGS Calculation
II. Configure Landed Cost Calculation By Quantity
In the Landed Cost Calculation settings, you can choose between two allocation methods: Value or Quantity. If you select Quantity, the entered Landed Cost will be allocated evenly across all products in the Supplier Bill, based on the total quantity of the products.
Follow the steps below to configrue the Landed Cost calculation based on the Quantity:
Step 1. Go to Settings, Search Landed Cost settings, Select Landed Cost search result
Step 2. Set the Landed Cost option to Quantity and click Save button
Step 3. The success toast will be displayed when the landed cost config is successfully saved
III. How To Add Landed Cost By Quantity In Supplier Bill
Step 1. Go to Orders, Supplier Bill tab, then select the Supplier Bill number to which you want to add the Landed Cost.
Step 2. Click the Landed Cost Button
Notes: The Landed Cost button is only available to users whose group has the Buy Create role.
Step 3. Fill all field in the Landed Cost Form
Notes: The available Landed Cost Type options are based on the Landed Costs created previously.
Step 4. Click OK when all the field in the Landed Cost Form is filled
Step 5. The Landed Cost will be generated in the supplir bill info
Step 6. Receive the Supplier Bill fulfillment to be able to allocate the Landed Cost across all products
Notes: The Landed Cost allocation requires the Supplier Bill fulfillment status to be Received. If the fulfillment status is already Received, you can directly allocate the Landed Cost to all products.
Step 7. Go back to the supplier bill info and click the Allocate button in the Landed Cost Form
Step 8. The success toast will be displayed and the landed cost is successfully allocated
Step 9. Expand the column to view and tick the landed cost column to show the landed cost from each product
As you can see in the image above, when the Landed Cost calculation is based on Quantity, each product in the Supplier Bill is allocated a Landed Cost of 16,666.667. This value is calculated using the following formula:
Total Landed Cost ÷ Total Quantity
This means that, based on the image above, the Landed Cost allocated to each product is calculated as follows:
500,000 ÷ 30 = 16,666.667
Step 10. Go to product variant detail and see the landed cost for the variant product
When you open the Product Variant details, additional information about the Landed Cost for that variant will be displayed. The Landed Cost is recorded separately from the variant's Buying Cost.
To see the history of Product variant's landed cost, you can click the Landed cost amount.
The landed cost from a product will be updated constantly each time there is a new landed cost in the next supplier bill. The landed cost calculation will use average method.
IV. Configure Landed Cost Calculation By Value
To configure the Landed Cost calculation based on Value, follow the same steps outlined in the previous section of this guide. The only difference is in the final step, where you need to configure the Landed Cost calculation to Value.
Change the Landed Cost calculation method to Value, then click Save to save the changes.
V. How To Add Landed Cost In Supplier Bill By Value
To add the Landed Cost calculation based on Value in the supplier bill, follow the same steps outlined in the previous section of this guide. The only difference is on the Step 9.
Expand the column to view and tick the landed cost column to show the landed cost from each product
As you can see in the image above, when the Landed Cost calculation is based on Value, Each product in the Supplier Bill has its own Landed Cost, and the amount may vary from one product to another. For example, the Leather Jacket (S) has a Landed Cost of 14,754.098. This amount is calculated using the following formula:
(Product Cost ÷ Total Cost of All Products) × Total Landed Cost
This means that, based on the image above, the Landed Cost allocated to Leather Jacket (S) is calculated as follows:
(90,000 ÷ 3,050,000) × 500,000 = 14,754.098
Related Article
DealPOS is an online point-of-sale (POS) application specifically designed for retail businesses in categories like Fashion, Minimarkets, Electronics, Fresh Food, and Building Material Stores.
With DealPOS, you can manage both online and offline store inventory in real-time on a single platform. You can also sell through omnichannel (offline and online) as DealPOS integrates with marketplaces (Shopee, Tokopedia, TikTok Shop, Lazada) and instant web stores (Shopify and WooCommerce).
For more detailed financial book-keeping, Books App is available as a separate accounting application. In addition, stock counting becomes easier with the DealPOS Scanner App, which supports barcode scanning features.