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Freight, customs duty, insurance and CHA charges never appear on the supplier invoice — but they are part of what your inventory really cost. Here's how ERPNext puts them there.
For any business that imports, the price on the supplier invoice is not what the goods cost. By the time a consignment clears customs and reaches your warehouse, it has picked up freight, insurance, customs duty and a clearing agent's charges — often a material share of the total. If those costs never make it onto the item's valuation, your inventory is understated, your gross margin is overstated, and your pricing is built on a number that was never true. This paper explains landed-cost accounting and how ERPNext's Landed Cost Voucher solves it: how it lets you add those charges after goods are received, distribute them fairly across the items in a consignment, and re-value stock so that cost of goods sold reflects reality. It also covers the India-specific angle — customs duty, HSN/tariff classification, and why creditable IGST is deliberately kept out of the landed cost.
The complete paper — every section, in a clean branded PDF you can share with your team. Free, no email required.
It's a stock document that lets you add costs like freight, customs duty, insurance and clearing charges after goods have been received, then distribute them across the items in the consignment and update each item's valuation — so inventory is carried at its true landed cost rather than the supplier invoice price.
You choose a basis: 'Qty' spreads charges by quantity, 'Amount' spreads them in proportion to each item's value, or 'Distribute Manually' lets you enter each item's share directly. ERPNext allocates proportionally against your chosen basis and trues up any rounding difference so the allocated total matches the charges entered.
No. Import IGST is generally creditable as input tax and recovered against your output GST, so it is not a cost of the goods and shouldn't inflate their valuation. Capitalise non-recoverable costs like Basic Customs Duty through the Landed Cost Voucher, and handle import IGST and its input tax credit via the India Compliance app.
You can raise the voucher after receipt, but it's best to apply it while the consignment is still largely in stock. Re-valuation corrects the item's valuation going forward; the more of the stock still on hand when you post it, the more accurately your cost of goods sold and margins reflect the true landed cost.
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Kochi (Kadavanthra & Infopark) · Thiruvananthapuram · across India & overseas · In business since 2011