The cost of your inventory for the purposes of margin calculations must include the suppliers cost and other relevant add on costs such as; exchange rate calculations, incoming freight costs (which can vary wildly based on the type of freight), duty, customs and clearing costs. Only then can you get accurate gross margin analysis.
The Aquilon ERP Landed Cost Tracking module gives you the ability to define the various additional costs incurred over and above the purchase price of inventory, mainly the costs to deliver to the warehouse(s), including customs duty, freight and other add-on costs.
The Landed Cost Tracking system gives you multiple options for location control, transport modes, freight classes and routings. You can choose between fixed rates and percentage costing options for each additional cost. The Landed Cost Tracking module can also be used for adding costs to products that are transferred between branches within your own network and for direct (drop) shipments.
The Landed Cost Tracking System adds the calculated additional costs to the suppliers purchase price, taking into account foreign currencies, and adds these costs to the suppliers purchase price to give a “landed cost” in the warehouse. The additional costs are held on file for matching in the Accounts Payable module.
At the time of creating a new purchase order, or at the time of receiving a shipment you have the control to change the landed cost components to cater for last minute shipping changes, to ensure your costs are accurate.