Landed Cost

Landed costs, which can be linked to purchase transactions, are the total of all costs that are associated with the Purchase of an item until delivery and receipt in a warehouse.

Landed costs typically include freight costs, insurance costs, customs duties, and handling costs. Landed costs give insight into the real procurement costs of an item.

In HAL ERP, The Landed Cost Could be created from the below

The Landed Cost could be created from

Bill Of Entry - For Customs duty charges

Purchase invoice- For other charges like shipping, handling, insurance cost etc.,

To include Landed cost to a product, 

• Select the Item receipt for which the Landed cost has to be included
• One can chose to include the Landed cost from the Purchase Invoice or  Bill Of Entry
• Choose the corresponding transaction reference number

The Allocation of the Landed Cost Could be Variable based on the below options

• Percentage
• Value
• Quantity
• Weight
• Cost

Allocation based on Percentage/Value

Allocation based on quantity/weight/Cost

In the below example, the Shipping cost of 1000/- has to be added to the products received to arrive at the final Landed cost of the product.

The below screenshots shows how the landed cost allocation 1000/- is done based on the ‘value’   and the ‘quantity’ and the allocation of the cost is done proportionately based on the quantity of each item.

The below screenshots shows how the landed cost allocation is done based on the ‘value’ and  ‘cost’ and the allocation of the cost is done proportionately based on the cost of each item.

Consider the same example of allocating the shipping cost of 1000/- Percentage wise based on the quantity and cost.