What are Landed Costs?
Landed Costs, the total cost of a landed shipment including purchase price, freight, insurance, custom duties and other costs up to the port of destination, are incredibly important to organisations.
Helping inform the business in order for it to run both effectively and efficiently, accurate costs and cash flow ensure precise profit analysis – enabling businesses to grow in the way they want to.
Stock is your single biggest asset, so without the ability to factor in the multiple elements of Landed Costs means you’re essentially flying blind with inaccurate margins, and a salesforce working to unrealistic targets.
Landed Costs and Bevica
With Bevica, Landed Costs have been made simple. Allowing you to set and record each part of a Landed Cost figure in real time, when stock hits the warehouse you’ll see the most accurate cost possible.
Typical elements of Landed Cost include:
- The cost of the product
- Customs duty
- Retros from suppliers
Any of these can be reconciled against your purchase invoices, which means you keep close financial control of money going out of the business.
Standard Purchase Order Additional Charges
As standard functionality, Bevica has a ‘Purchase Order Additional Charges’ option. Here, you can add any element of additional cost against an entire purchase order (where costs are apportioned on a volume basis across all product lines), or specifically on an individual product line.
For example, freight cost can be spread across all product lines on a purchase, but you may want to attribute more insurance cost to spirits than beer. (Or, faster moving lines have a lower RH&D cost element than slower moving lines.)
In landing stock costs are immediately visible, posted to the stock ledger and to accrual accounts in the nominal ledger, making it easier for you to see what’s coming in and out.
Enhance Landed Cost* functionality
If you require more control, Bevica has the option of allowing you to pre-define your elements of cost and have these calculated automatically on purchase receipts.
Default costs can be setup against products, suppliers, countries and transport codes, ensuring consistency and accuracy.
By exception, you can modify these costs where, for example, some stock has been airfreighted for a special event.
*Enhance Landed Cost is an add-on, and therefore has an additional cost to your existing service.
So, how accurate are your Landed Costs?
Do you need help calculating these?
Do you already know all of your costs and would you like the additional charges to be added?
If you’d like help or simply someone to talk to in more depth, please get in touch. We’ll be happy to talk through Landed Costs, your current Landed Cost functionality, and our extended functionality with you.