Hey guys, I run a business where I import goods and sell them and as with importing, the purchase invoice is always in USD and as such conversion rates apply, and there a bunch of costs involved in importing like container , freight , gst, tax, truck hire and so on. Im not sure how I am able to put the cost of items individually as shown on the guides. For now I have manually added inventory with no entry for item cost. And I have recorded payments under purchase invoices, however the inventory items and invoices aren’t linked. Can I keep doing it in this manner or how can I better improve my method. Thanks
It is not clear what you are referring to here. Which Guide? What items?
This is confusing, too. Why are you adding anything with no cost?
That is impossible in Manager. Describe exactly what you did. Show screen shots of transaction Edit screens.
Again, show screen shots.
Almost assuredly not. But, as I said, it really isn’t clear what you are doing.
Here I have attached two screenshots.
1st screenshot shows all purchase invoices which have been paid. However in the manager io guide for using inventory and purchase invoices it shows that they enter each item and how much it costs, however since we have so much extra expenses importing out goods after its purchase, I have only put the total cost of all goods in the invoice and have not itemised the invoice. And as can be seen on screenshot 2 I have just added my inventory manually.
You have to enter the inventory items as lines in your purchase invoices with the item cost in order to het items valued at cost
Others charges such as freight, shipping are added as a line or separate invoice and allocated to the inventory items automatically
We usually pay 2-3 different recipients regarding the importation process which all add to the final cost of obtaining the good. So how can I enter it so that these costs effect the price of the items in the inventory. Thanks
And we usually pay in USD so is there a way for my purchase invoice prices to be set to USD. Thanks
@Faris_Haroon, all your questions are covered in the Guides, with examples.
Additional costs, such as freight-in, duties, etc., can be allocated to individual inventory items by selecting the inventory item on a purchase invoice or payment form and entering zero quantity.
Purchase invoices are automatically in the currency defined for the supplier. That is also covered in the Guides.
You should not include the Alibaba fee on the invoice
It is not a fee you pay to your supplier
You need to include it as a separate line on the payment or as a separate invoice from Alibaba.
Thanks got it , using a seperate line on the payment works fine. I don’t know why I didn’t do that before. I just have one last question. I had a container filled up with products from 3 different suppliers and freight forwarder issued their own invoice. Now how can I set it up so that the freight cost is accounted for in the costs of the inventory items. Thanks According to the Guide all the inventory items have to be on the same invoice ( but as they are from different suppliers its different invoices) , the guide also says that the invoices must be in the same currency, however supplier invoices are USD and freight forwarders invoice is in AUD. Any help would be greatly appreciated thanks.
You need to enter everything manually since you have multiple suppliers and multiple currencies. There is no way to use the freight-in item. You need separate purchase invoices for all suppliers involved.
So I just have to manually calculate the average freight and handling cost per item and add It in inventory item costs manually ? Currently I have all supplier invoices seperate and Freight-In invoices seperate. Or can I just leave it as freight-in costs and not account it towards the cost of the item. Is that still right? Thanks
Under the circumstances you described, yes. Procedures are in the Guide.
You combines several issues. First, freight-in charges can only be included on a purchase invoice from the supplier of goods if the charges are to be paid to the same supplier. Charges from a different supplier must be on a separate invoice. That is also explained in the Guide.
Second, whether you include freight-in charges in the cost of goods depends on whether you are capitalizing them. That, in turn, can depend on local law and accounting standards. You may or may not have a choice.