32. Don't Include Landed Costs
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Overview
Don't Include Landed Costs
Don't Include Landed Costs - Why is the landed cost separate from the average cost?
The Landed Cost is an indicator of what it costs to bring your Goods into the country, hence this is why it is called the Landed Cost.
The Average Cost is the value you can track to work out the COGS (Cost of goods Sold) and it is what you base your Sale Price on.
Be very careful when you are working these figures out. In Purchases Preferences there is a option "Include Landed Coast In Average Costs".
It is advised not to turn this option on. Otherwise you will have your overhead calculated twice and you need to journal back every time.
This could very easily confuse what you are trying to avoid doing.
