Confused with Landed Cost Voucher. Need some help and explanation

I am on v12 and I am confused when I create a Landed Cost Voucher. This is my example on e newly installed environment.

I created a Purchase Order → Purchase Receipt → Purchase Invoice → Payment Entry

which Grand Total is $5000

After that I sell 8 of them for $100 each.
8 * $100 = $800.
(Sales Order → Delivery Note → Sales Invoice → Payment Entry)

When I see Profit and Loss Statement it shows like this:

which makes sense. From $800 that I have sold, my expenses are $400.

BUT, when I create a Landed Cost Voucher of $1000 on Purchase Invoice that was $5000 the Profit and Loss Statement changes.

This is the Landed Cost Voucher:

and this is the updated Report of Profit and Loss Statement

How was that -500 calculated ? Why my profit went from $400 to $1300 which doesn’t make sense because I spent $1000 more on that Purchase Receipt which was the Shipping Cost.

Have you gone through document ?

It may help.

I did some investigation on your issue, below my feedback, as a conclusion remaining stock onhand 92 should get the 1000$ extra cost only, what you say?

Yes, I did. I always read documentation first. before posting here.

I, still am having difficulties how that $ -500 and $ 1300 was calculated on Profit and Loss Statement after I created the Landed Cost Voucher.

For me it’s more a bug, but we need confirmatiin from community members…

1 Like

Can you tag anyone please, because I do not know which one to tag.

Hi @nextchamp.saqib,
I am sorry to tag you, since I am not sure about above issue is it a bug or not, please could check and update at your free time.

Or let me know who can help on this.



The profit seems to increase from $400 to $1300 because you haven’t entered any outgoing expense for Shipping Cost yet. You’ll notice that the value against Expenses Included in Valuation is negative. This will need to be adjusted somewhere.

Suppose you make another Purchase Invoice to another Supplier for the Shipping Cost for $1000. The “purchase” of this service might go against Freight and Forwarding Charges. After this transaction the following values will get cancelled out -

Expenses Included in Valuation $-1000
Freight and Forwarding Charges $1000

Total expense will be $500. Which should give you a Profit for the year of $300. A decrease from the one before the LCV, which is understandable because the valuation rate of the items just increased.

Referring to the screencap, the Jan column is similar to what you have and the Feb column is after the Shipping Cost expense is registered.

That being said, I think the Cost of Goods Sold amount should be $480. Reasoning -

Before LCV
valuation rate: $50
cogs: $50 x 8 = $400

With the LCV, the $1000 is considered as additional value of the items.

After LCV
valuation rate: $60 (because original total value of all items $5000 + $1000 = $6000, so the valuation_rate becomes $6000 / 100)
cogs: $60 x 8 = $480



Im a little bit confused

The LCV goes against “Expenses Included in Valuation” Account for a chargue of $1000 of cost expenses

When creating Purchase Invoice for this shipping cost in the “Credit To” its not possible to select
“Expenses Included in Valuation”