Description
Many businesses who import or pay freight and duty for their items track prefer to track landed costs for accurate Average and Last costs.
Workflow Reminder This article suggests an option on how to manage this in the MYOB file. This is only a suggested workaround and should be discussed with your business accountant prior to use. |
Detail Steps
Enter purchase order to supplier with your correct buy price.
Bill and Receive goods as normal.
Promptly after receipt (preferably prior to commencing picking of goods and definitely prior to Closing invoices from WMS to MYOB), receive Freight tax and duty invoices using these average out freight and duty across the original purchase by increasing the price on each line.
Enter a line in negative for the total of the freight and duty only – this should be the item code that is linked to the correct cost of goods account.
Record Purchase (Purchase total should not have changed).
Enter a separate purchase for Freight, Duties and Taxes.
Please review PDF attached as example.
Note This process requires the creation of an item(s) linked to the cost of goods account for journaling out the additional cost of goods, you will only need to process this one time for each different COGS account. |
Create a new item code for each of cost of goods accounts you use for stock items.
Select your item code, name and tick I buy.
Select COGS account code.
Click on Buying Details Tab.
Select “Tax code when Bought” this should just be the most commonly used tax code for stock bought.
Related Information
Many freight forwarders will provide landed costings for goods if you request it (there is normally a fee).
The MYOB option “Transaction CAN’T be Changed; They must be reversed [system wide]” should be set to OFF.
This method can be used to obtain accurate average cost or last cost for non inventory items.