What is landed cost ?
Basically landed cost means Product Price + Extra Price.
Ultimately, we have to calculate cost price with all extra cost(customs, duties, taxes, insurance,..) then only we able to calculate correct stock valuation.
Let's take one example for better idea,
Suppose, i have 2 iPad mini, each priced at 150/unit.
- Selling price : 300 Euro in Belgium
- Transport charge : 9 Euro
- Duty : 11 Euro
Total Landed cost : 320 Euro at receipient address.
So here for 2 iPad mini i have total cost 320 Euro.
Product Cost price : 300
+ Landed cost(9 + 11) : 20
Now, in my business how can i allocate landed cost charges, so for that we have different spiting methods(equally, by quantity,...)
equal : we want to allocate cost equally. So here iPad mini 160/unit
In Odoo :
- install landed cost module
- Set Costing Method : Real Price (on product category OR generic setting)
- Inventory Valuation : Perpetual (automated) [real]
- Stock Input Account
- Stock Output Account
- Stock Valuation Account
Full Test Case :
- Create one product iPad Mini (stock able type)
- Now on product category(v9) define costing method : Real Price
- Inventory Valuation : Periodic, Stock Input A/c(asset type), Stock Output A/c(expense type), Stock Valuation A/c(asset type).
- Create one landed cost type product(transport charge) : product type- service, Landed Costs : True
- Create Purchase order for "2 iPad Mini" product and complete flow(receive)
- Create Landed cost and select above incoming picking and add cost lines(transport charges) choose split method equal
- Click on compute to calculate "Valuation Adjustments".
- Now simply validate
To see updated cost price of your stock :
Go to Inventory > Reports > Stock Valuation and in Inventory Value you can see the updated cost price.
Here, you can see original inventory value of your business.
Landed cost type have different split methods,
Equal : Equally allocate the landed cost to products
By Quantity : Allocate cost based on the quantity of each products
By current cost : Allocate landed cost based on current cost of each products(after multiplying qty)
By weight : Allocate landed cost based on weight of each products
By Volume : Allocate landed cost based on value of each products