cifraHQ Enterprise
Landed cost

Five allocation methods. One costing engine.

<code>LandedCostVoucher</code> collects freight, duty, insurance, brokerage and other, and allocates them to receipt lines with the right method. Correct inventory valuation from the first sale — not after close.

The document

LandedCostVoucher on one page

The voucher is a first-class document with lifecycle Draft → PendingApproval → Released → Posted, like any other. It references one or more goods receipts (GRN) and groups additional costs that actually increase inventory unit cost — not ones that are period expense.

  • Additive cost categories. Inbound freight, duty, import insurance, brokerage, other. Each category maps to a temporary GL account that reverses on posting.
  • Multi-receipt. One container can hold three different POs. The voucher distributes additional costs across lines from all three receipts simultaneously.
  • Preview before posting. The system shows the new unit cost per SKU before you confirm. If the calculation looks off, adjust the method and re-simulate.
  • Integrates with the costing engine. On posting, StockedProductDetail receives the new unit cost — Average, FIFO or SpecificID, per the product's configuration.
The five methods

The right method for each cost

  1. By value (proportional to line amount). Cost splits proportionally to each line's value. It is the default and correct for most financial costs (insurance, brokerage) — whoever has more expensive goods absorbs more of the indirect cost.
  2. By quantity. Cost splits proportionally to units received. Appropriate for charges that scale with pieces — per-unit handling, labeling.
  3. By weight. Proportional to total line weight (quantity × unit weight). Correct for ocean freight billed by ton or pound.
  4. By volume. Proportional to total volume (quantity × unit volume). Correct for freight billed by cubic meter or cubic foot — shared partial container.
  5. Manual. The user assigns cost line by line. The escape hatch when the shipment is atypical — one damaged box absorbs its insurance, the rest does not.

One voucher can use different methods per category: by weight for freight, by value for insurance, manual for a specific adjustment. Consistency isn't required — each charge allocates on the method that actually represents it.

Variance and reconciliation

When actual cost arrives later

  • Estimation at receipt (v1.5). Automatic landed cost estimation at receipt time — with reconciliation against actuals when the freight forwarder's invoice arrives — is deferred to v1.5. In v1 the voucher requires manual entry.
  • Multi-voucher per receipt. A receipt can absorb multiple vouchers over time — freight arrives today, insurance arrives three weeks later. Each one adds to the SKU's unit cost.
  • Nothing posts without approval. Released passes through threshold approval like any bill. The voucher is material — it does not post silently.
  • Permanent traceability. Historical unit cost for a SKU on any past date is reconstructable — the costing engine stores the movement history, not just the running total.
Why this is the critical domain

Without landed cost, inventory lies

Correct COGS

Real margin on the first sale

If freight is not landed, the first sale reports artificially high margin. Finance sees profit that is not there. The voucher closes that lie.

Correct valuation

Reliable close

Closing inventory is worth what it is worth. Without landed cost, you report under-valued inventory — direct impact on financial statements.

Correct decisions

Pricing grounded in reality

Sale price is decided against real cost, including duty and freight. Without this, margin strategy is a wish.

The contrast

What this looks like outside cifraHQ

cifraHQ Enterprise Manual allocation
Document
First-class LandedCostVoucher
Ad-hoc manual journal
Methods
Five, mixable per category
One, chosen by habit
Multi-receipt
One voucher, many GRNs
One JE per receipt
Preview
New unit cost before posting
Post, then fix later
Impact on COGS
Immediate on posting
Late, if at all

Landed cost demo with your real import

Bring your last freight-forwarder invoice; we walk through the voucher with your real lines in one session.

Schedule demo