Apply import cost to a branch transfer
Overview
You can apply import costs, such as freight fees and customs duty, against an approved branch transfer in order to calculate accurate landed costs of products being transferred.
Cin7 Omni calculates landed cost per product line item in the Branch Transfer.
Prior to entering Import Costs, in the Landed Costs section of a Branch Transfer, ensure you have entered the import cost invoice(s) directly in Accounting Software under the relevant expense account.
Never include tax in an importcost.
Add import costs to a branch transfer
Add import costs in your local currency and without tax directly to the branch transfer:
Open an approved branch transfer which you would like import costs to be added. If the branch transfer is not approved, the landed cost section will not appear.
Under the Landed Cost section, use the dropdown box to select the type of Import Cost you want to be added as a part of the landed cost
Enter the costs without tax for each line item in your home currency. The header text of the Amt field displays your home currency.
Repeat the above steps and add as many lines as you need using the "Add a new landed cost" button.
Once you have entered all the lines required Save the Branch Transfer.
Cost distribution
Once the costs have been entered, the total import costs are either managed as freight costs or custom duty costs.
Freight Costs
Freight costs can be distributed in three different ways:
| Method | Description |
|---|---|
Value |
This is the default method used - the more expensive items receive a larger portion of the freight cost. This method is most appropriate if all your items have similar weights and dimensions. |
Weight |
This method uses weight - the heavier items receive a larger portion of the freight cost. The weight of each product is specified in the product details page. This method is most appropriate if the weights of your products vary significantly. |
Cubic Meters |
This method uses volume - the larger items receive a larger portion of the freight cost. The volume of each product is specified in the product details page. This method is appropriate if the size of your products vary significantly. |
You can select the distribution method using the dropdown list to the right of the landed cost rows :
Examples:
A Branch Transfer has two product line items on it with the following details:
- $100 total value for Product A with a quantity of 5, weight of 5kg each and volume of 2 cubic meters per item.
- $200 total value for Product B with a quantity of 10, weight of 10kg each and volume of 9 cubic meters per item.
The total freight paid is $30.
Therefore, when $30 is entered as the total freight amount against this Branch Transfer, Cin7 Omni will split it and add it to the landed cost of each product line item, depending on the selected distribution method, as follows:
For Value distribution method:
- $10 for Product A, calculated from: $30 x ($100 / ($100 + $200))
- $20 for Product B, calculated from: $30 x ($200 / ($100 + $200))
For Weight distribution method:
- $6 for Product A, calculated from: $30 x ((5 x 5) / ((5 x 5) + (10 x 10)))
- $24 for Product B, calculated from: $30 x ((10 x 10) / ((5 x 5) + (10 x 10)))
For Volume distribution method:
- $3 for Product A, calculated from: $30 x ((5 x 2) / ((5 x 2) + (10 x 9)))
- $27 for Product B, calculated from: $30 x ((10 x 9) / ((5 x 2) + (10 x 9)))
Customs duty costs
The total customs duty amount is distributed according to the Customs Duty Rate applied against each product line item of the Branch Transfer.
Example:
The two product line items on the Branch Transfer above have the following custom duty rates applied:
- Product A with a 5% customs duty rate
- Product B with a 10% customs duty rate
The total customs duty amount is ($100 x 5%) + ($200 x 10%) = $25
Therefore, when $25 is entered as the total customs duty amount against this Branch Transfer, Cin7 Omni will split it and add it to the landed cost of each product line item as follows:
- $5 for Product A, calculated from: $25 x (($100 x 5%) / (($100 x 5%) + ($200 x 10%)))
- $20 for Product B, calculated from: $25 x (($200 x 10%) / (($100 x 5%) + ($200 x 10%)))
To understand the setup of the customs duty rates that are used in the distribution refer to this article.
FAQs
Can I add another account to the Landed Cost account dropdown?
Yes. Please read the help article on How to Add Custom Landed Cost field.
I see your weights and dimensions are in metric. Can they be changed to imperial?
While the field description can't be changed, entering weight as pounds or ounces will work provided you enter the units consistently across all your products, and the weight is in whole units. The same goes for dimensions.