Landed Cost in QuickBooks Desktop: allocating freight cost to inventory value

Description:

In this video we show to you how landed cost works in QuickBooks Desktop

Video:

Table of Contents:

  • 00:00:35 – Problem to solve
  • 00:01:09 – Enter bills (step 1: create purchase order and receive inventory items as normal) (example with scenario)
  • 00:02:35 – Step 2: Receive bill, write check, and/or credit card charges for your external costs as normal, is ok if they point to COGS for now
  • 00:04:16 – Create invoices (issue we need to solve: COGS are currently overstated; inventory asset is understated)
  • 00:06:13 – Solution (add the freight, shipping, and/or custom costs to each item based on the proportion cost per unit)
  • 00:09:25 – Allocation of Landed Cost Based on Another Attribute (other example)
  • 00:10:24 – Create purchase order (P.O)
  • 00:10:44 – Create custom fields and enable them to use the P.O as your database of allocable factors such as weight, volume or factors
  • 00:12:27 – Enter bills
  • 00:12:58 – Export purchase order from QuickBooks Desktop to CSV excel file (transaction journal)
  • 00:14:12 – CSV file (purchase order) (step by step) (using multiple factors of external costs like weight to calculate the external cost per unit, and the customs factor to calculate the accurate duty cost per inventory item)
  • 00:18:28 – Go back to original bill and modify with csv file and match it (make sure the negative from expenses added to the positive from the items equal to the total amount due actually paid to manufacturer or inventory vendor)
  • 00:20:05 – Inventory valuation summary
Hector Garcia

Hector Garcia

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