Inventory cost inclusive of freight and tax

[Flakily8674]

As far as I understand it, Manager will only include entries under Freight-in of Purchase Invoice as part of inventory cost.

If I wish to include duty paid into the inventory cost, I have to do work arounds. What’s the generally accept way to deal with this?

1. Include the duty into the price of the item (don’t tick price is tax inclusive, don’t assign tax)
2. Include the duty as part of Freight-in

The first method needs adjustment to the invoice total. The second option makes the invoice amount unclear (product cost to supplier + freight cost to shipper + duty paid to customs all rolled into 1 invoice amount as non-line items) so it’s hard to run payable report.

Is there a better way to get the inventory cost inclusive of freight and tax, while also making payables clear?

[eko]

@Flakily8674

If I wish to include duty paid into the inventory cost,

Note that Duty is also a tax and you therefore should in settings create such Duty entry and then use:

@Flakily8674

Include the duty into the price of the item (

Therefore you should tick the price is tax inclusive.

[Flakily8674]

It appears that if:

1. “Amounts are tax inclusive” is checked and no tax is selected, then the inventory cost work as expected

2. “Amounts are tax inclusive” is checked and a tax is selected, then the inventory cost will ignore the tax.

But using the first option makes tax payable completely hidden on the balance sheet. So this will make the line item cost more correct but it still complicates payable.

[Joe91]

Input taxes such as VAT are never included in costs

[Flakily8674]

I think the confusion is that I’m looking to use Landed Cost as the Inventory - cost whereas by default, Manager uses COGS.

I found this solution that seem to work well Landed Cost - Multiple Vendors - #6 by Brucanna. Using contra accounts to make payable much more clear.

Does anyone foresee any issues with recording the invoices this way?