Clarify for purcahse expenser

1

Just want to clear scenario on following:

When we import goods we have shipping cost. Through landed cost voucher we apply the cost to the product. But we have to pay also to the shipping company, so we make an invoice without the item for shipping cost and pay against that to the shipping company.

now the question is the cost of shipping is added two times. One time by landed cost voucher on product valuation and one-time directly while making purchase invoice.

Please clarify me on this.

2

No, the cost is not added twice.

While adding the shipping costs via Landed Cost Voucher, “Expense Included in Valuation” (Expense) account is credited and “Stock in Hand” (Asset) is debited.

Then later when you deliver the same item, the “Cost of Goods Sold” (Expense) is debited.

So, there is no effect of the amount added via Landed Cost Voucher at the long term. Only the amount debited by Purchase Invoice against Shipping Company has actual effect.

3

ok dear thanx for clarification