Landed Cost Procedure for Importers
Your MYOB software cannot automatically apportion landing costs to individual line items. This procedure is a workaround to ensure that:
- Stock on Hand is valued at full landed cost
- Cost of Sales reflects landed cost of stock sold
- Actual landed costs can be easily identified
Please follow these instructions to set up
- Set up cost of sales accounts list as per the example:
Other actual landed costs accounts may be set up if required.
Set up stock items as normal as per the example:
Set up a Landed Cost Adjustment item as follows:
Steps to be completed for each shipment that arrives
Complete an Excel spreadsheet for the imported shipment to allocate the landed costs to the individual items.
Formulas in the above spreadsheet:
In your MYOB software, enter a purchase from the supplier for the items at full landed cost, and on the last line enter a negative Landed Cost Adjustment
There may be a rounding amount as in this case ($0.19), just leave as is.
As invoices are received for actual landed costs, enter these using service purchases and code to respective cost of sales accounts.
(Remember that Customs GST does not form part of the cost of the goods and should be coded to a separate GST Liability Account!)