The accounts effected by Landed cost entry

Hello to all,

I want to update the item cost for the shipping cost. I found the Landed cost entry to update the cost. When I entered the shipping cost, I was asked to select the account. So I selected Shipping cost (expense) account. Then I submitted.

Stock value updated, That’s great!!. But there is no ledger entry against the selected expense account which is the Shipping cost account. Instead, entry was made to the Expense Included in valuation account. Is that intended behaviour? If yes, why does erpnext ask us to select the account we want?

After this entry, the cost was booked under the Expense Included in valuation account.The valuation of the stock goes up accordingly. Hence, the accounts are balanced. I am confused here. Do I need to do another Journal entry to pay this expense from Cash account or Bank account so that Expense Included in valuation account become zero?

Any suggestion??

Best Regards,

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Actually, “Account” is not required in Landed Cost Voucher, we have removed it in upcoming version 5. And the gl entries are expected.
When you get invoice from the transporter, you need to book that invoice in the system. “Shipping Cost” will be booked via that invoice.
The account “Expenses Included in Valuation” will be nullified, when item gets delivered. It does not nullified directly, as in Delivery note you select “CoGS” as expense account. Basically, net effect (balance of Stock Expenses group) is nullified.

Ok. May I know when version 5 will be out?

No fixed timeline, but may be at the end of January.

Hi Nabin,

I have checked out the demo of v5. “Account” is still a required field in the Landed Cost voucher. Please comment.

Pushed the fixes, but it is not deployed in v5 demo account.

Hi @nabin,

Currently, the entry affected in making this entry to LCV is as below:

While entry created upon delivery of the goods is below:

I suggest that instead of Automatically creating an entry of Credit to Expense included in Valuation in making LCV, why not have the option to select Shipping company Account so that there is no need to create a new entry in booking payable to Shipping Company like Fedex, DHL, TNT, Aramex or any other shipping company. So upon payment, we only have to close the account “shipping Company” and credit to cash/cash in bank.


Hi @nabinhait

Trust you’re doing great. I noticed that up till now, there is still no entry to close Expense included in Valuation unless it’s done manually. Any plans in this regard?


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