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Ask Bryan Cheong – SQL Accounting Software – Accurate Stock Costing By Adding Landing Cost

SQL Accounting System - Syntax Technologies

Ask Bryan Cheong – SQL Accounting Software – Accurate Stock Costing By Adding Landing Cost

In general, people will treat the purchase price as the cost of an item. But is it the real cost in foreign purchasing?

Let’s look at an example, Company A purchase item from oversea supplier, the supplier will Invoice company A dan ship the goods and reside at Port Klang. Company A may request a forwarding company to take care of the delivery of the goods from Port Klang to Company A. There will be extra charges like Customs Duty, Insurance and also charges by forwarding company. In short, we generally call these charges as C.I.F or Landing Cost. So, to get the real costing for that item all these charges should be add back to the item beside of purchase price alone.

Let’s have a look on how we handle Landing Cost in SQL Accounting System. In this example, We purchase 3 item from a US company and receive their Invoice in USD.  As usual, we will key this transaction in Purchase->Purchase Invoice with Invoice number PI-00029.

We can check the costing for each item in Ringgit Malaysia via Stock->Print Stock Card.

Let say we have instructed a forwarding company to handle the C.I.F for us and they bill us RM500, this transaction we can key in Supplier->Supplier Invoice. But in Purchase Invoice PI -00029, we need to do field chooser and drag out L/Cost 1 and L/Cost 2 at item level, to key the item Landing Cost for each item.


Alternatively, you may also key the Landing cost at the right bottom corner, Landing Cost 1 and Landing Cost 2, then click the “+” button to allocate the landing cost to each item, using Sub Total, Quantity or Smallest Quantity, which will then reflect in L/Cost 1 and L/Cost 2 for each item.

After key in and allocated the landing cost, you can check back the Stock Card and see that the cost for each item have been increased.

In conclusion, for foreign purchasing, you should add in CIF as Landing Cost to get the accurate costing for each item.

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