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Landed cost module includes the ancilliary 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 is still entered on the shipment as a GST Credit)

  • Freight costs
  • Handling costs
  • Customs agent fees
  • Storage costs
  • Quarantine fees
  • Insurance

Note that 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 2 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 for GST

  • Freight, Insurance, storage and quarantine fees are payable on each shipment and are apportioned on a cubic volume basis to stock

  • FX Rates are:

    MonthUSD Rate
    September0.812
    October0.784
    November0.756
Process

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