Allocating Landed Costs to Inventory Valuation
Accurately distribute freight, customs duties, shipping insurance, and clearing fees across purchased inventory item batches.
[IMAGE - Landed cost allocation screen showing invoice total, freight charges, and allocation method by weight or value]
Distributing Acquisition Costs
Landed costs increase the unit cost basis of inventory items, ensuring true gross margin calculation upon retail sale.
Accounting & Ledger Impact
| Account Name | Code | Classification | Debit | Credit |
|---|---|---|---|---|
| Merchandise Inventory | 1200 | Current Asset | Allocated Cost | - |
| Freight / Customs Clearing Payable | 2050 | Current Liability | - | Freight Amount |
Note: Capitalizing landed costs into inventory ensures compliance with standard inventory valuation rules.