The landed Cost system operates as follows.
Purchase orders coming into the warehouse on a delivery added to a “Shipment”
Shipping Costs incurred (actual or estimated) are added to the shipment and apportioned to the purchase orders. These costs can be against a specific creditor or a General Ledger Code. These costs can be completed prior to or following the receipt of goods.
Value of Taxable Import (VOTI) invoice(s) created where required
Invoice(s) for the goods being booked in can only be committed when all the goods for that invoice have been received
Following is a summary of the JIWA 7 shipment processing cycle:
Raise a new Shipment, enter the shipping information and select a creditor, if required to act as the shipping agent. (There is no invoicing for this creditor)
Select the purchase order(s) that represent goods to be included on the shipment. Purchase orders can be for one or many different suppliers and individual lines can be selected from the purchase orders. The adding of purchase order lines creates the suppliers Invoices
Enter the costs for the shipment and enter the Foreign Exchange rates if applicable. A shipment can contain invoices for suppliers with different currencies
Allocate costs across the expected quantity shipped lines to establish the landed cost price for each line. Costs can be allocated over the lines of goods in four (4) predefined ways, individually editable where required - Cost, Quantity, Weight or Cubic
Where the shipment is a Value of Taxable Import (VOTI) shipment, enter the GST charged on the shipment. The Ex GST value is automatically calculated
Commit the shipment for book-in and create Book In records. There can be many booking in documents for each shipment. The book-in step inserts inventory into JIWA 7 at the Landed Cost value and makes it available for sale and delivery.
Complete the Suppliers Invoices following the receipt of goods. Extra cost can be invoiced to the respective Creditors at any time even after the shipment inventory items have been invoiced but before the shipment has been ‘finalised’.