Inventory Accounting: Landed Costs - Odoo 17 (Part 10 of 11)

[@karangrewal]

Thank you

[@stefania.d.5283]

Hello kevin thanks for this video it helps a lot! anyway, I'm testing the valuation by lot plus landed cost and used it for manufacturing order (in your case its sales order), but the final finished good value is original raw material value + landed cost + landed cost. its weird bcs the system calculated the landed cost double. do you know why?

[@javedshakir5156]

Superb 100/100

[@Kemosabe96]

The expense account inserted in the bill and in the landed cost seem to be both debited and credited respectively by the same value. Is the expense reflected on that account or is it only reflected in the COGS account?

[@WaqasGCC]

same question, kevin's illustration nets out the defined accoutns. However bigger companies keep track of their COGS.

[@amersaeed4]

while viewing the partner ledger account, i found that Landed cost is payable to the Partner/Supplier/Vendor. Why the landed cost payable to supplier?

[@IsraelGross]

So how does translate into commission And how can I creat a list or dashboard that a sales person can see why his commission Is less because of added cost?

[@BryanRodriguez-gj4rl]

I have a question Hope you can help me, I am trying to add landing cost to a product, not service, is it posibble? the check box of landing cost doesnt not show up with product

[@KZAKI]

You add landed costs with a service product. A landed cost is typically shipping or other fees and those are services rendered.

[@BryanRodriguez-gj4rl]

@@KZAKI I understand, I've Just watched your video again, and I got it now, ty very much for your content. And for your quickly response. Have a nive week!

[@WaqasGCC]

Kevin one question though, how do we reflect the additional valuation to the respective GL Accounts of each landed cost applied? bigger companies have detailed COA's and under cost of revenue section they define shipping / custom duties accounts etc. Your illustration nets out the expenses :/

[@KZAKI]

Sounds like a good opportunity to simplify the CoAs. In my opinion, separating out CoGS by what came from shipping doesn't give you any value at the financial statement level. You can always go see how much you spent on shipping in a given month elsewhere in your GL or in your landed costs or product analysis. Imagine looking at your P&L and it shows $500,000 in Shipping CoGS. It means nothing without additional context. If you really want you can sum your debits to the Shipping Expense account originally debited for a specific period and credit General COGS and debit the Shipping COGS for that amount so you can have a pretty accurate idea. Lastly, the only time I saw this done is when a company is using standard cost or manual inventory valuation (therefore not using landed costs) and debiting the shipping bill directly to a COGS account for simplicity.