Landed Cost

Advanced · 8 min · Purchases

Spread freight, customs duty, clearing and other charges over the goods you bought, so your stock cost shows the true cost of getting them to your godown.

Open this screen in Stockivio →

Landed Cost

Screen layout sketch — the screenshot will appear here once it is added.

Why and when you use it

The supplier's price is not what goods really cost you. Freight, duty, clearing agent fees and loading add to it, and if you leave them as separate expenses your product cost looks low and your profit per item looks better than it is. Landed Cost adds these charges to the stock itself. It matters most for importers and for goods with heavy freight. Trade Intelligence also has a Landed Cost tab for import shipments.

Before you start

Record the supplier's purchase bill in Purchases first
Collect the bills for freight, duty, clearing and other charges for that purchase

Step by step

Open Landed CostOpen 📦 Landed Cost from the Purchases area.
Pick the purchaseChoose the purchase bill (or goods received) that the extra charges relate to.
Add each chargeAdd each extra cost separately: freight, customs duty, clearing charges and any others, with the amount from each bill.
Spread the chargesLet Stockivio spread the total charges over the items on that purchase, so each item carries its share.
Check the new unit costLook at the cost per unit for each item after the charges are added. Make sure it looks reasonable before you save.
SaveSave the landed cost. From now on stock valuation and profit reports use the higher, true cost.

Worked example

Patel Engineering Works, Rajkot, imports 1,000 bearings for ₹2,00,000. It also pays ₹12,000 sea freight, ₹15,000 customs duty and ₹3,000 to the clearing agent: ₹30,000 extra in all.

Record the supplier's bill of ₹2,00,000 in Purchases.
Open 📦 Landed Cost and pick that purchase.
Add the charges: Freight ₹12,000, Customs duty ₹15,000, Clearing ₹3,000.
Spread them over the purchase. With one item, all ₹30,000 goes onto the bearings.
Unit cost rises from ₹200 to ₹230. Save.

Result: The 1,000 bearings are valued at ₹2,30,000 in stock. When Patel Engineering sells or uses them, the profit and product costing reflect ₹230 per bearing, not ₹200.

💡 Tips

Add landed cost soon after the goods arrive, before many units are sold, so cost of sales is right from the start.
Ask your CA which import charges allow input tax credit (such as IGST paid on import) and how they should be recorded.
For imports with several shipments, Trade Intelligence's Landed Cost tab helps track each shipment.

⚠️ Common mistakes

Recording freight and duty only as expenses and also as landed cost, which counts them twice.
Adding recoverable GST into landed cost. GST you can claim as credit is generally not part of stock cost; check with your CA.

सवाल

Do I need this for local purchases?

Only if the extra charges are large. For small local freight, many businesses just book it as an expense.

🎬 Video walkthrough (script — recording coming soon)

Scene 1: Why the supplier price is not the true cost.
Scene 2: Open Landed Cost and pick the import purchase.
Scene 3: Add freight, duty and clearing charges.
Scene 4: Spread them and show unit cost go from ₹200 to ₹230.
Scene 5: Save and show the higher stock value in a report.