Genoa Optional feature

Landed cost in Genoa: freight and customs added to item cost

In short

Landed cost in Genoa adds freight and customs on top of an item's cost, so the cost of imported goods reflects what it actually took to bring them in. It is an optional feature: off by default and switched on per organisation, only for companies that need it. It is meant for Iraqi companies that import the goods they sell.

This is an optional feature: it is off by default and is switched on per organisation when needed.

Key facts

What it adds
Freight and customs on top of item cost
Availability
Optional, off by default
Enabled
Per organisation, as needed
Suited to
Companies that import goods
Placeholder illustration of the landed cost screen in Genoa, to be replaced with a real screenshot using test data
Placeholder Placeholder image of the landed cost screen. It will be replaced with a real screenshot using test data.

What is landed cost?

Landed cost is an item's cost plus freight, transport and customs duties. In other words, it is everything the company paid on the goods until they reached its warehouse.

For example, if a company buys goods for 10,000,000 dinars, then pays 1,000,000 dinars for freight and transport and 500,000 dinars in customs duties, the landed cost of those goods is 11,500,000 dinars.

Why does landed cost matter when pricing imported goods?

If an item's cost is based on the supplier's price alone, profit looks higher than it really is, because freight and customs are left out.

When those charges are added to item cost, the company knows its true cost and can set prices and measure profit on a sound basis.

How does landed cost work in Genoa?

Landed cost in Genoa adds freight and customs on top of item cost, so the item's cost in inventory includes those charges.

Landed cost is optional: it is off by default and switched on per organisation, according to each company's needs. A company that buys locally without freight or customs usually does not need it.

Can landed cost be used together with multi-currency?

Landed cost and multi-currency are switched on separately, so a company can enable one, both or neither, as it needs.

An importer that buys in dollars and sells in dinars may need both. Multi-currency is also optional, off by default and switched on per organisation.

Questions about landed cost

What is the difference between item cost and landed cost?

Item cost is what the company pays the supplier for the goods, while landed cost is item cost plus freight and customs.

In Genoa, freight and customs are added on top of item cost when the landed cost feature is enabled; it is optional, off by default and switched on per organisation.

Is landed cost useful for a company that buys locally?

Usually not. Landed cost is mainly useful when a company pays freight and customs on top of the purchase price, as with imported goods.

Because it is optional, off by default and switched on per organisation, it simply stays off for companies that do not need it.

All frequently asked questions: Genoa

  • Inventory

    Keep track of the items your company buys, stores and sells, alongside sales and the accounts.

  • Sales and purchasing

    Record what the company sells to customers and buys from suppliers, alongside stock and the ledgers.

  • Multi-currency

    Optional feature

    Work in US dollars alongside Iraqi dinars. Optional, off by default and switched on per organisation.

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