• Contents

Apply Cost to a Purchase Order

Last updated 22/01/2021

How import costs such as freight fees and duty should be applied to Purchase Import costs in order to calculate accurate landed costs.

Overview


Cin7 calculates landed costs very accurately. 

Prior to applying Import Costs to a Purchase, ensure you have entered the import cost invoice directly in Accounting Software. In addition to this please install the Accounting Dashboard

To apply Import Costs to a Purchase:

  1. Open the Purchase Order which you would like landed cost to be added
  2. Under the Landed Cost section, use the dropdown box to select the type of Import Cost you want to be added as a part of the landed cost
  3. Apply costs in your home currency for each line item.

Distribution of Costs


Once the costs have been applied, you can choose how the cost is distributed amongst the products:

Cin7 provides a useful report to break down exactly how costs have been distributed for a particular order. To view this report, hover over the cog icon in the Purchase Order module and then click Report

See Purchase Order Report for more information.

The total costs are allocated to products as follows:

Freight Costs

Freight costs can be distributed in three different ways:

Method Description
Value This is the default method used. Freight costs are distributed by value, so the more expensive items receive a larger portion of the freight cost. This method is most appropriate if all your items have similar weights and dimensions.
Weight This method uses weight - the heavier items receive a larger portion of the freight. The weight of each product is specified in the product details page. This method is most appropriate if the weights of your products vary significantly.
Cubic Metres The method uses volume - the larger items receive a larger portion of the freight. The dimensions of each product are specified in the product details page. This method is most appropriate if the size of your products vary significantly.
Customs

Customs Duty is distributed over the entire order by the value of the products (i.e., the more expensive goods receive a larger portion of the Duty).

FAQs

 

Can I add another account to the Landed Cost account drop-down?

Yes. See the How to Add A Custom Landed Cost Field Help article for additional information.

I see your weights and dimensions are in metric. Can they be changed to imperial?

Although the the field description cannot be changed, if you enter weight as "pounds" or "ounces", the given field will respect the entered value and the cost distribution should work without issue provided you enter the unit consistently across all your products, and the weight is in whole units. The same goes for dimensions.