How to Set Up Landed Cost Accrual under Account Posting Settings

A2000 ONLINE SUPPORT DEPARTMENT

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DESCRIPTION:        This guide provides step-by-step instructions on how to properly configure the Chart of Accounts (COA) for landed cost transactions within the system. This setup ensures that all costs associated with importing or purchasing goods such as freight, duties, and other additional charges are accurately recorded and reflected in the financial statements.

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NAVIGATION STEPS:
 

1. Go to Home.
2. Select System Administration.
3. Click Transaction Settings.
4. Open Account Posting Settings.
5. Navigate to the “Others” tab and locate the Landed Cost Accrual section.
6. Click each dropdown field and select the appropriate COA (Chart of Accounts). Ensure the accounts are aligned with your company’s accounting structure.
7. Click Save to apply the changes.

Example Setup: Landed Cost Accrual

Below is a sample configuration for Landed Cost Accrual:

• Landed Cost Credit: 30130 Provision for Landed Cost 
• Landed Cost Purchase A/C: 65100 Freight/Handling/Insurance Expense – SG 
• Landed Cost Variance A/C: 65101 Freight/Handling/Insurance Expense – PI 
• Landed Cost Closing Stock A/C: 66000 Closing Stock

• The Landed Cost Credit account is used to temporarily record accrued landed costs.
• The Purchase Account captures the initial landed cost expenses.
• The Variance Account is used to record any differences between estimated and actual landed costs.
• The Closing Stock Account ensures that landed costs are capitalized into inventory value.

Sample Double Entry Posting
 

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