Landed cost applied at receipt, by a basis you choose
Freight, duty and clearance are attached to the item receipt as landed cost
categories and allocated across the lines by weight, volume, quantity or value —
per category, because ocean freight and customs duty do not distribute the same way.
The inventory value and the cost of sale both carry it, so gross margin per SKU is the
real one from the first sale.
Location-level costing and controlled transfers
Inventory is valued per location, so branch margin reflects what that branch
actually paid. Transfer orders move stock at cost with in-transit ownership held
explicitly, and the receiving location inherits a cost rather than inventing one.
Consignment held as owned stock at a third-party location
Customer-held stock sits in its own location, on your balance sheet, visible in
the same stock reports as everything else. Revenue is raised on the consumption report
rather than on despatch, and the difference between shipped and consumed is a stock
position you can count instead of a reconciliation you cannot.
Rebates accrued against the cost they belong to
Rebate agreements are tracked against purchase volumes as they accumulate and
accrued into inventory cost rather than dropped into other income on settlement.
Margin per SKU stays true across the rebate year, and the negotiation with the supplier
starts from a number you can evidence.
