What may be included
Depending on policy, landed cost can include freight, duty, brokerage, insurance, handling, and other directly attributable amounts. Accounting treatment should be reviewed with qualified financial advisors.
Allocation methods
Additional cost may be allocated by quantity, weight, volume, value, or another defensible driver. The method should reflect the cause of cost, handle partial receipts, and preserve rounding control.
Operational and financial connection
Allocation changes inventory value and later COGS when the item is sold or consumed. A traceable system connects the charge, receipt, allocation basis, product value, and journal impact.
Controls to consider
Define eligible cost types, timing, approval, correction, close-period behavior, and reconciliation. Test receipts containing multiple products, units, warehouses, and already-issued inventory.
Questions to bring to discovery
- Which users and decisions depend on this workflow?
- Where does information originate, and which system owns it?
- Which exceptions, corrections, and approvals must be supported?
- How will the organization measure a successful result?
Related guides and solutions
How Simor Soft can help
Simor Soft can assess the current process, configure or customize Simor ERP and our other product foundations, build a dedicated application, connect existing systems, migrate data, and support the solution after launch. The recommended path depends on operational value, risk, timeline, and long-term ownership.