Shipping cost for stock valuation


Let me explain 2 different processes that should give the same result in the stock ledger.
I’m purchasing 10x ITEM 1€/each and the supplier will invoice me 10€ for shipping

1/ I already know that the supplier will invoice shipping and I know the exact amount.
Purchase order, purchase receipt and invoice will include 10€ for shipping on the “charge and tax table”
Stock ledger gives valuation for ITEM: 2€ (I 'm happy with the result)

2/ I will discover the shipping cost later on the invoice.
Purchase order and purchase receipt are made with no shipping cost
Later, make an invoice with 10xITEM + 10€ shipping.
ITEM valuation: 1€ (I can not agree).

When I make an invoice from a purchase order, it’s not allowed to change item price, but I can add or change “Charges and Taxes”. Those added/removed charges, even if marked as “total and valuation” are not used for valuation.

I’ve read “Landed cost voucher”
But the page explains that it stands for 3rd party shipping invoicing only. That is not the case here, as shipping is invoiced by the supplier.

I’ve tried to check “update stock” when making invoice, but I get a message saying “Stock cannot be updated against Purchase Receipt”.

What king of process should I adopt to be sure that added charges will be included in valuation?
Or, should it be disallowed to change the charges in a invoice that is coming from a purchase order?


I have the same requirement. In my case. The purchase receipt is handled by Stores Dept who cannot apply the charges and taxes correctly. They leave it to the accounting team who enter invoices. This is a general practice in the company and I have seen it across other industries as well. The invoice is always going to be authoritative in including all costs of a material, and hence i feel that invoice (and only invoice) should be considered for the valuation of item.