Landed cost

What an import really cost is not the supplier’s price. Freight, insurance, the forwarder’s fee, the port, the customs duties, the truck to your warehouse and the bank’s fees all come on top. They arrive on invoices over several weeks, some in dollars or euros and some in dinars. The goods and these costs together are the landed cost of the goods. It is the figure that you price from.

Beelocity keeps these invoices on the import dossier that they belong to, as its charges. If an invoice is in a foreign currency, Beelocity converts it to dinars when you save it. So the dossier always shows what the import has cost so far. When the figures are complete, you post them. Beelocity then gives the goods still in stock what they really cost.

The Foreign trade officer and the owner of your organization can record the charges and move the sheet from one status to the next. Other roles see neither the Charges tab nor the Landed cost tab, unless the owner of your organization gives them the right to see costs.

What goes into a landed cost

A charge is anything that you paid to bring these goods to your warehouse. You pick its Kind of charge, and the list offers only the kinds that the dossier’s terms allow. Insurance, customs and the domiciliation tax are always in dinars.

• Freight: the carriage to the place of discharge, by sea, air or land. You pay it under EXW, FCA, FAS or FOB. Under the other seven Incoterms, the supplier paid it and it is in the goods’ price, so the list does not offer it.
• Insurance: the premium for the goods in transit. An importer who insures a sea or air shipment insures it with an insurer approved in Algeria. So you enter it in dinars.
• Forwarding: the fee of the forwarder or the customs broker.
• Port and handling: discharge, handling and storage at the port.
• Customs duties and taxes: what customs liquidated, such as the customs duty and the solidarity contribution, without the import TVA. You pay them to customs, so they are in dinars. A customs declaration can make these charges for you, as the next paragraph says.
• Domiciliation tax: the tax on the bank domiciliation, which you pay in dinars at the tax office. An import for your own needs, and not for resale, does not pay it. Neither does a dossier exempt from domiciliation, so the list does not offer it to either.
• Inland transport: the truck from the place of discharge to your warehouse.
• Bank charges: the bank’s domiciliation, commitment and transfer fees for this purchase.
• Other: anything else that brought the goods here, such as a laboratory analysis or a conformity inspection.

When you record a customs declaration, Beelocity adds a charge for each of its costs. A cost on an article spreads over that article’s goods. A cost on the declaration as a whole, such as the Customs IT fee, spreads over all the dossier’s goods. While a declaration of the dossier is Recorded, the list no longer offers Customs duties and taxes. If the dossier has no declaration, type these charges by hand. If you typed some and then record a declaration, Beelocity refuses to record it until you delete them.

Two things are never a charge, because you get them back:

• The TVA that you recover. Enter every invoice without it. You deduct the import TVA that customs collects and the TVA on a forwarder’s invoice on your TVA return. So they are not part of what the goods cost.
• The advance on profits tax that customs collects on goods for resale. You set it against your profits tax.

Leave out penalties too, such as a customs fine or the shipping line’s charge for a container returned late. They pay for a delay, and not for bringing the goods here.

Record a charge

1. Open the import dossier, then its Charges tab.

2. Press New.

3. Pick the Kind of charge. Under Description, write what the invoice is for, such as Sea freight Shanghai–Algiers.

4. Under Billed by, pick who sent the invoice: the shipping line, the forwarder, the port, the insurer or the bank. Leave it empty for customs or the tax office.

   Each of them is a business partner. If one is missing, a Procurement manager, a Sales manager or the owner of your organization can create it.

5. Copy the Invoice number from the invoice.

6. Enter the Invoice date, the Currency and the Amount, without the TVA that you recover. Enter a credit note from the forwarder as a negative amount.

   For customs, the domiciliation tax and insurance, Beelocity fills in your base currency and closes the Currency field.

7. Leave Apportionment basis on Value, unless the charge follows the quantity of goods. See How charges are spread.

8. Press Save.

If the charge is in a foreign currency, its page then shows two figures under In the base currency. They are the Exchange rate that Beelocity used and the Amount in base currency. A charge in dinars converts nothing, so its page shows neither. The Charges tab lists every charge of the dossier with both figures. To correct or delete a charge, open it from the tab.

A dossier still takes charges after it is closed, because the last invoices often arrive after the goods. A cancelled dossier takes none. While the landed-cost sheet is Final or Posted, nobody can add, change or delete a charge.

Some charges hold a dossier’s terms in place. A dossier that holds a domiciliation tax cannot become exempt from domiciliation. A dossier that holds freight cannot move to an Incoterm under which the supplier pays the carriage. If you try, the message names the charges. Delete them on the Charges tab first.

The exchange rate a charge is converted at

A charge in dinars stays as it is, and the form asks for no rate. Beelocity converts a charge in a foreign currency when you save it:

• By default, at the rate on file for the invoice date. That is the latest rate entered for that currency on or before that day. If no rate is on file, Beelocity refuses the charge until you enter the rate.
• At the rate on the invoice, if you type it in Stated rate. The field appears only for a foreign currency. The rate must stay within five per cent of the rate on file for that day, up or down. This catches a rate typed with one digit too many, and it leaves room for a bank’s spread. A rate on file must still exist.

The charge keeps the rate that it was saved at. The Treasurer or the owner of your organization can correct a rate on file. After they do, open the charge, press Edit and then Save, and Beelocity converts it again. You can do this only while the landed-cost sheet is a Draft.

How charges are spread

A charge pays for a whole shipment, but each line received carries its share. The Apportionment basis says how Beelocity decides the share:

• Value: each line carries a share in proportion to its value in dinars. Freight, insurance, customs duties and fees follow the value of what they carried, so this is the default.
• Quantity: each line carries a share in proportion to the quantity received. Use it for a charge billed per package, such as handling, when the products’ prices are very different.

Beelocity counts a quantity as the receipt writes it, whatever its unit. If one product arrives in kilograms and another in boxes, spread the charge by value.

A charge that you typed spreads over every line received. A charge that a customs declaration made for an article spreads over that article’s goods only. A cost on the declaration as a whole spreads over every line.

Read the landed-cost sheet

Open the dossier’s Landed cost tab. These figures are above the table:

• Goods value: what the goods received are worth in dinars, at the supplier’s price less its discount.
• One figure for each kind of charge that the dossier has, such as Freight or Port and handling.
• Landed cost: the goods and every charge together.
• Coefficient: the landed cost divided by the goods value. A coefficient of 1.3261 means that each dinar paid to the supplier cost 1.3261 dinars when the goods reached your warehouse. Multiply a supplier’s price by it to know what a product really costs you.
• Goods rate: the exchange rate that the goods are valued at. See State the goods rate.

The table has one row for each line received. Each row shows its Product, Lot, Quantity, Unit and Goods value, and its share of each kind of charge. It ends with its Landed cost and its Unit landed cost, the landed cost of one unit. While the sheet is a Draft, Beelocity works out every figure again each time you open the tab. So a charge that you added this morning is already in it.

The sheet waits for the goods. Until Procurement completes a goods receipt for one of the dossier’s orders, the tab says that nothing has been received yet.

A charge can also have nothing to fall on yet. Then the tab shows only a message, and no figures. This happens most often in two cases:

• A customs declaration made the charge, and none of its article’s goods are received yet. The sheet waits until Procurement receives them.
• You typed the charge with the basis Value, and the goods received so far are worth nothing. Set its Apportionment basis to Quantity.

If a customs declaration made the charge, and the goods that it falls on are worth nothing, you cannot change its basis. If the article lists the wrong goods, set the declaration back to Draft, correct its goods, and record it again. If the goods really cost nothing, such as free samples, no step on the screen fixes it today.

Until you post the sheet, your stock keeps the cost that each receipt put into it. That cost is the supplier’s price at the exchange rate of the receipt day.

State the goods rate

By default, each line received keeps the exchange rate that its goods receipt used. So the sheet’s goods value is exactly what the receipts put into your stock. Your accountant may prefer one day’s rate for the whole import. It can be the day the goods shipped, or the day customs registered the declaration.

You can state that rate while the sheet is a Draft and the dossier is in a foreign currency:

1. On the Landed cost tab, press State the goods rate.
2. Enter the Rate date. The Stated rate field then appears beside it.
3. Leave Stated rate empty to use the rate on file for that day. Or type the rate that you want, within five per cent of that rate.
4. Press State the goods rate.

Beelocity values every line again at that rate. The tab then shows Goods value at the receipts’ rates beside the new Goods value, so you see how far apart the two are. To go back to the receipts’ rates, open the dialog again, clear the date and press State the goods rate. A dossier in dinars has no goods rate to state.

Finalize the sheet

When the last invoice is in and all the goods are received, freeze the sheet so that its figures stop moving:

1. On the Landed cost tab, open the status above the summary. It reads Draft. Choose Final.
2. Under Finalized on, enter the day that the figures were complete. The field opens on today’s date, and the day cannot be later than today.
3. Press Finalize.

The sheet now reads Final, and its figures stay as they were at that moment. Nobody can add, correct or delete a charge, or change the goods rate.

A final sheet prints, and so does a posted one. On the dossier’s page, Download landed-cost sheet or Print landed-cost sheet gives the paper that your accountant files. While the sheet is a Draft, both are greyed out. A posted sheet’s paper also shows what every posting moved.

The header of the paper writes the Incoterm with the place that the rule names. Under FAS and FOB, it is the dossier’s Port of loading, as in FOB Shanghai. Under CFR and CIF, it is the dossier’s Port of discharge. Under the other rules, the header writes the rule alone, because their place can be the supplier’s works or your own warehouse.

To correct a final sheet, choose Draft from its status, and then press Move to Draft. The figures follow the charges and the receipts again. Finalize the sheet again when they are right. The status’s history says who finalized the sheet, who moved it back to Draft, and when.

Beelocity does not finalize a sheet while an order of the dossier still has goods to receive. It also refuses while nothing has been received, while a charge has nothing to fall on, or when the dossier is cancelled. While an order still waits for goods, Final is greyed out in the sheet’s status. Rest the pointer on it to see which orders.

Post the landed cost to stock

A final sheet says what the goods really cost. When you post it, Beelocity gives the dossier’s goods that are still in stock their landed cost, wherever they are now. From then on, a sale, a delivery or a transfer of these goods carries that cost.

1. On the Landed cost tab, open the status above the summary. It reads Final. Choose Posted.
2. Under Posted on, enter the day. The field opens on today’s date. The day cannot come before the sheet’s Finalized on day, or after today.
3. Press Post the landed cost.

Each lot that the dossier’s receipts created takes its share, wherever its goods are now. They can be in stock in any warehouse, in any status such as Quarantine, or on a transfer between two warehouses. Goods on a transfer reach the other warehouse at their new cost when it receives the transfer.

Some goods may have left your stock before you posted, because you sold, used, wrote off or returned them to the supplier. Beelocity cannot add their share to your stock, so the sheet keeps it apart. After posting, the tab shows these figures for each line and in total:

• Posted to stock: what the postings added to the goods in stock, or to a machine’s Purchase cost.
• In transit: what the postings added to the goods on a transfer.
• Variance on goods already gone: the part of the postings that fell on goods that left your stock. It is not a loss. It is part of what those goods cost, and your accountant books it as such.

If you stated no goods rate, the three add up to the sheet’s charges, to the centime. If you stated one, they add up to the charges plus the difference between Goods value and Goods value at the receipts’ rates.

A late invoice after posting

An invoice that arrives after you posted the sheet still belongs on it.

1. Choose Draft from the sheet’s status, and then press Move to Draft. Your stock stays exactly as it is.
2. Add the charge on the Charges tab.
3. Finalize the sheet, and then post it again.

The second posting moves only the difference. The new charge spreads in the same way, onto the goods still in stock. The share that falls on goods no longer in stock goes into the variance. The figures on the tab are the total of every posting. The status’s history says who posted the sheet, and when.

A machine imported for your own use

A dossier can bring in a machine that you keep, such as a press or a refrigerated van. It can come beside the goods that you sell or use up. Its product is received as an asset. So its receipt added it to your assets at the supplier’s price, and nothing went into stock.

The sheet treats it like any other line received. Its goods value takes its share of the freight, the insurance, the duties and the other charges. Its unit landed cost is what the machine really cost. Its Lot column reads On the asset register.

When you post the sheet, Beelocity raises the Purchase cost of the machine’s asset by its share. A line in stock puts its share onto the goods in stock instead. A press bought at 20,000 $ at 135 DA arrives on your assets at 2,700,000 DA. Posting 270,000 DA of freight onto it brings its purchase cost to 2,970,000 DA. A machine that you already disposed of takes nothing, and its share appears in Variance on goods already gone. A late charge moves only its own difference, as for stock.

If a machine arrived before its product was marked as received as an asset, it went into stock as a lot. Its line posts to that lot, like any other line in stock.

What the app refuses, and why

• A charge of nothing. Enter a credit note as a negative amount.
• A charge in a foreign currency with no exchange rate on file for its invoice date or before. Press Enter the rate in the message, and save the rate. Then save the charge again.
• A stated rate more than five per cent away from the rate on file. Check the rate that you typed. Or leave Stated rate empty to use the rate on file. If the rate on file is wrong, the Treasurer or the owner of your organization can correct it.
• A charge on a cancelled dossier, and the finalizing of its sheet.
• A kind that the dossier’s terms rule out, such as freight under CIF or a domiciliation tax on an import for your own needs. The list does not offer such a kind.
• A goods rate more than five per cent away from the rate on file for its day. If no rate is on file for that day, Beelocity refuses the goods rate too.
• A change to a charge or to the goods rate while the sheet is Final or Posted. Choose Draft from the sheet’s status first.
• A change to a charge that a customs declaration made, or its deletion. If the sheet is not a Draft, choose Draft from its status first. Then set the declaration back to Draft, correct it and record it again.
• A Customs duties and taxes charge typed by hand while a declaration of the dossier is Recorded. The list does not offer this kind then.
• Finalizing a sheet while an order still has goods to receive. The message names the orders. In Procurement, the Procurement manager or the owner of your organization receives the goods, or closes or cancels the order.
• Posting a sheet on a day before it was finalized, or on a day after today.
• Posting a sheet after Procurement cancelled one of its goods receipts. This applies to a receipt cancelled after the sheet became Final, and the message names it. Choose Draft from the sheet’s status, finalize the sheet again, and then post it.
• Any charge, while your organization has no base currency yet. The owner of your organization sets it as Default currency on the organization’s page.