Landed cost module includes the ancillary costs of shipping and handling in the cost of inventory entered into Jiwa.
Cost which are apportioned to the inventory items (under AASB 102 - Inventories) may include:
- Taxes and duties levied on the imported goods which are not recoverable
(GST refunded by the ATO for example may not be included in the cost of inventories but cab still entered on the shipment as a GST Credit)
- Freight costs
- Handling costs
- Customs agent fees
- Certain Storage costs
- Quarantine fees
- Insurance
Note: Discounts and rebates should be deducted from the purchase cost of inventories recorded in Jiwa.
Background of example
BigIdeas Pty Ltd is an Australian company selling imported goods purchased from China
Purchases from Chinese suppliers are contracted in $USD
There are 4 suppliers Woo1, Woo2, Woo3 and Woo42 suppliers Woo Sun & Woo Dragon
An identical set of products is purchased from each supplier - jeans, tshirts and shoes
A shipping agent Golden Sun Shipping (with Australian Business) packs all Chinese orders into a container and ships every month to Australia (Amounts are invoice in $AUD)
Each order delivered is assessed by Australian Customs and Border Protection Service for GST
Freight, Insurance, storage and quarantine fees are payable on each shipment and are apportioned on a volume cost basis to stock
Lead time for delivery of orders is 3 monthsFX Rates are:
Month USD Rate September 0.812 October 0.784 November 0.756