Understanding Landed Cost Voucher

I’ve added LCV of Rs. 10,000 on a Purchase Invoice, it has credited the expense (Frieght) by Rs. 10,000. Now in profit and loss account I have negative balance of expenses and net profit of Rs. 10,000 without any sale or any other transaction.

Am I missing something, do I’ve to pass another entry for the expense account? i. e.

Freight Rs. 10,000 Dr.
Cash Rs. 10,000 Cr.

Yes. You have to book this expense through purchase invoice or journal entry. Then your P&L will be zero.

Some companies keep a balance sheet account under a group Account named “Landed Cost”. It can be called the same item “Freight Landed Cost” and on monthly basis you can pass a journal to offset it against the actual account that was paid.

This helps to keep an estimated account that will either have a Dr. or Cr. balance at the end of the month once the actuals are offset and while the cost shows less/more incorrectly, it caters for advance expense booking and allows sales to be done with an estimated gross profit.

Hi, I am having the same question.
could you please be so kind and explain how it is done?
My general situation is like this:
Product purchased+ local shipping + customs +international shipping + customs + local shipping
All of them have separate people and companies to be paid but i need them all to be added to my product costs.
thanks a lot

When creating a purchase receipt/purchase invoice(with update stock ticked), your inventory value will be updated. Then you can create a landed cost voucher against that document. You can add multiple landed cost details in the landed cost voucher and divide the same into items by quantity/rate/manually. Once you submit the landed cost vouchers, the inventory account will be debited with the new values and will add to the individual item valuation rate. Now you have to create a journal entry / purchase invoice to book the same against the other parties and the accounts mentioned in landed cost voucher will be debited against that. I hope this is clear now. Thank you

thanks a lot.
I don’t get the last part about creating a journal entry/ purchase order.
So far I have included all of the above mentioned in my total cost for the product and did the rest in excel.
how do i purchase services like shipping, the purchase order allows for items.
tnx again

You need to create a Service Item,Map the correct Expense Acocunt in Item and post Purchase Invoice.
May be this video might help