I procure an item worth 1000 from a supplier, tax for this is 100 and I incur another 200 for transportation of this item. So when it reaches my rack, I would have spent 1300 and this is my landed cost. When the inventory is debited with this item, shouldn’t it be 1300?
If I make a sale of this item for 1700, then the GP would be 400 in this case, as the tax and transportation have added cost to my inventory item here already.
However, I was trying to get this done thru Manager, but was not successful. I generated the purchase invoice to supplier X and debited inventory on hand with the code. Here the purchase invoice amounts to 1100, including the tax charged by supplier X. Now I have to record another 200 as transportation of this item to my place and this is done by Supplier Z. When I try to do this, I get the quantity affected as we have two different suppliers/service providers. Besides, the tax paid for this items to Supplier X is not reflecting on the inventory value. Though it is grouped under Tax category, I feel this is more of a cost than tax concern and it should be shown on inventory value.
My point is that, the inventory item should have the landed cost rather than the purchase price as the purchase tax paid and the transportation involved are costs to me. When I make a sale later, the Selling Price - Landed cost would be my GP.
Is there something that can be done by me to overcome this in the current version? Please share your views… and also advice, if this is already possible.