Landed Cost Categories
You have chosen the items for which you want to track landed cost. Now, you can create landed cost categories to track the different kinds of expenses incurred when purchasing.
For example, one category can be called Freight Truck Expenses and another called Courier Expenses.
Typical landed cost categories include the following:
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Shipping Charges
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Freight Costs
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Import Fees
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Customs and Duty
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Taxes
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Insurance
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Handling Charges
Each landed cost category you create is associated with a expense account that is intended as a holding account. The value is ultimately cleared between landed cost allocation and the vendor bill entry.
This account is usually not a Cost Of Goods Sold (COGS) account. The COGS entry is made during the item fulfillment process. It is common to use special accounts for landed cost expenses that are separate from regular expenses. This provides an easier audit trail.
After categories are created, you can select them for items on transactions.
For details about how to create a landed cost category, see Creating Cost Categories.