I am situation where I have to record imports. Consider the following scenario.
Suppose I (Company D) have two products: A and B.
Product A
I bought 10 items of this products, each costing $20, therefore $200 in all, from Supplier A. Supplier A charged $50 for shipping the products to Warehouse X1.
Product B
I bought 10 items of this products, each costing $30, therefore $300 in all, from Supplier B. Supplier B charged $25 for shipping the products to Warehouse X1.
Warehouse X1 is located in China.
My company warehouse (Warehouse D) is located in South Africa.
Company C is paid $1000 for shipping the products from China to South Africa in its own Warehouse C1.
When the goods reaches South Africa, I pay tax $25 for Product A and $50 for Product B. The products are finally stored in Warehouse C1.
For each day that my products stays in C1, i pay an additional charge of $25. My products stays there for 2 additional days, meaning that I have to pay $50. I then pay a transport $25 to bring my goods from C1 to my warehouse D1.
This is somewhat the scenario I have when I import goods. I have following questions:
Is this possible to track all these in ERPNext, from the very first time I am purchasing the goods from the Suppliers.
If it is possible, is there a recommended workflow that ERPNext proposes for such a scenario.
All the costs incurred above will be used to calculate the cost price of Product A and B. Is it possible to do costing in ERPNext.
If possible, can I get some hints about how to the record the above scenario. In short, the scenario consists of:
1. Buy 10 units of Product A from Supplier A.
2. Supplier A ship 10 units of Product A to Warehouse X1 in China.
3. Buy 10 units of Product B from Supplier B.
4. Supplier B ship 10 units of Product B to Warehouse X1 in China.
5. Company C ships units of Product A and B from China to South Africa
6. Tax is paid for Product A and B.
7. Company C moves Product A and B to its Warehouse C1.
8. My Company (i.e. D) pays transportation to move the products from C1 to D1.
9. I (i.e. Company D) pays Company C for its services at a general tariff of $1000 and additional charges of $50 for the two days that my products stayed in its warehouse (i.e. C1).
Create a Purchase Order (PO) or Purchase Invoice to your supplier.
When goods are shipped, submit a Purchase Receipt against a “Transit” warehouse (inside your warehouse tree) (e.g., Transit Port). This records the items as owned but in transit.
Use Material Transfer entries (with “Add to Transit”) to move goods through other transit warehouses (e.g., Transit Port → On Sea → En Route to Depot), reflecting logistical progress.
When the goods arrive at your physical warehouse, make a final Material Transfer from the last Transit warehouse to the destination warehouse (e.g., Main Warehouse).
If perpetual inventory is enabled, each movement updates the relevant stock and accounting values accordingly.
Record each expenses in Purchase Invoice of each service supplier and the right expenses account.
The tool used to allocate “estimated landed costs” (import expenses) to the valuation of items is called the “Landed Cost Voucher”.
It allows you to distribute expenses like freight, insurance, customs, handling, etc., across the items in one o more Purchase Invoices, updating their valuation accordingly.
RECOMMENDATION: To better control all costs, create a Project at the start of each import and link it to every related transaction. Then, use the Project filter in the General Ledger report to easily track all associated expenses.
Regards
There are two costs involved in case of IMPORTS. The first one is Origin Cost which is generally equals to Shipping Documents like Import PO or LC Amount in case of LC. The Other costs are Destination Cost related to shipment other expenses like transportation, Forwarding, Customs and Warehousing.
As soon as you receive goods at your Physical Warehouse as per @Malvin, The Landed Cost Voucher can be run with all destination expenses for valuation purpose then. Stock Ledger Report can reflect addition to item level with distributed cost (Origin + Destination) for that shipment.
A custom report can serve the purpose of locating particular destination expenses born and recorded actually over the course of shipment as following;
In the Landed Cost Voucher, i’m normally going to add charges, in the above scenario i set, how do i add $25 to custom for Product A and $50 to custom for Product B. It seems that in Landed Cost Voucher, i cannot assign some charges to a specific product?
You can charge Destination Expenses for particular items in any of your shipment by running Landed cost Voucher partially as well where you have to pick and choose relevant items only. infact you can run multiple Landed Cost Vouchers for one Purchase Receipt in this case.
So far good, I have another issue. Consider the following Landed Cost Voucher. As you can see, in Purchase Receipts, the cost of Product A is 250. As mentioned above, Product A cost $20, and Qty is 10, so $200. Then, shipping of $50 to Warehouse X1, so $250.
From my logic, I don’t need to add the $50 again to Applicable Charges in the current Landed Cost Voucher. However I see that it’s not taking it into consideration. See the section Purchase Receipt Item in the LCV, it’s taking $200 and adding to $25.
Or Should I again put the Shipping $50 in the applicable charges, wouldn’t make sense tho given I already added it in the Purchase Receipt
The type chosen as Valuation will serve the purpose of Landed Cost Application on items received under this GRN and kill the need to run landed cost voucher.
Keep in mind, the mentioned two valuation expenses ( Freight and Customs ) are required to be recorded as Actual Expense as well.
I believe this is possible only if the purchase receipt contains only one product right? Else we’ll have to use the LCV to assign the an expense to a product individually.
