Landed Cost Voucher & Direct Expense


Supplier Name: ABC
Item name: XYZ

I purchased XYZ - 20 no’s from ABC @ Rs.400 per Unit. (20x400 = 8000)
ABC has has raised the invoice with shipping cost of Rs.200
Total Supplier invoice value is 8200.

I have accounted this invoice value as per the supplier’s invoice.(item value+shipping).

Now the landing cost of XYZ should be Rs410. When I check the item ledger, it was showing Rs.400 only.

So I created Landed cost voucher for that item from purchase invoice. And I have added Rs.200 to applicable charges and selected inward freight a/c in tax and charges column.

Now the landed cost of the item became Rs.410. Fine.

I have cross checked the inward freight ledger. For this particular invoice, Rs.200 the freight charges are reflecting on Dr and Cr side of the inward freight ledger. Thats means inward freight a/c is zero now (nullified).

I just want to know whether I did right accounting. I guess, that the freight amount is carried into the product costing and its not necessary to show in inward freight ledger. Right?