Mr. Hector you nailed it. I am following you from almost two years now and would recommend everyone to watch his videos especially Quickbooks users. I myself is certified chartered accountant ACCA UK so thank you again.
Thanks for the quick overview of how to accurately calculate total landed cost so it does not interfere with COGS giving true profit reporting. Makes sense to put those expenses there to get a true landed cost to make an accurate pricing point. Thanks, Quinn.
Thank you for this great video, Mr. Hector. I have been really facing the challenge of landed cost recording! A really great solution for my challenge. Thank you much.
Mr. Hector, thank you very much for sharing all your knowledges with us, you are saving lives. The only question I have is how do we determine the Customs Factor?
About the transaction of allocation of freight cost. There is a problem For example when u make the transactions u did unit price for example was 2 after transaction became 2.3 The proplem is when u try to make credit memo to the vendor the unit price stay2.3 It suppose to became higher because fright cost stay in inventory U got my point?? What is the solution?
Thank you so much!! I've been struggling with landed cost and have a separate spreadsheet to calculate the true margin. This helps so much. Our customs and freight bills come in 2 months or more after the product bill. Can we just change the customs and freight bills by months? Will that cause a problem especially when the bills cross fiscal year end? Again thank you so much for these videos!
+Hector Garcia (CPA) Having struggled to keep accurate records off-line, I think the manual process is pretty straight-forward, and once it's been done several times it will be pretty simple. Thanks again.
Hi Sir, This video helps a lot and justified for allocating the expenses to the cost of goods,Thanks. This helps us to fix our margin , with better clarity. however my doubt is the PO remains the same?, I noticed you did not change in this video as well, and QB did not give alert for the difference in price, what will be the impact in the books of accounts, we need to check and refer to the old PO's, when ever we send to the supplier. Iam new to quick books hence phence lease help me to under this logic.
Thank you for this information Hector! I have a question regarding how to calculate the customs factor. I know the customs fees we will be charged based off of the HS code for our products but do I also need to include the other fees associated with importing the shipment i.e. handling fees when the shipment arrives at port, document fees etc to get a true customs factor?
HI Hector, Good stuff. Thanks for uploading. But usually the foreign vendor would bill you in a foreign currency and the import duty and custom clearance charges etc are in local currency. How would you handle that? Would you convert the local charges into foreign currency or do you use some other method altogether? Thanks.
Thanks for all your tutorials. I noticed you created Freight as a item under "Other Charges", but I was wondering about "FREIGHT COSTS" and "SHIPPING INCOME". Are these also custom? There is a preset freight option, but I couldn't find "SHIPPING INCOME" as an option. Is it ok to use "Postage and Delivery" as the income account when creating this Freight item?
Hector - This is so helpful. Thank you! What if the ONLY inventory costs are external costs? (There is no actual purchase. Just the cost of removal of the material and transportation back to warehouse. (Labor or subcontractor, transportation, fuel, etc.) Thanks.
Thanks Hector. This presentation is very helpful but I wanna know details from vendor activities .e.g Items, Quatity, price, and amounts. The price should not be included the frieght costs or landed costs.
Hi Hector , Many Thanks for your tutorial. Can you please advice this same way i can treat local clearing & Transportation charges, Air Port handling charges whatever costs ? Our Company Imports equipment for selling.....
@@HectorGarciaCPA sorry, is there another way to adjust my landed cost? Since I do not use QB inventory. Meaning when I enter my cogs from the software already includes the landed cost, so I have to remove it from my expense otherwise will be overstated. How do I do that?
Hi Hector, thank you for your videos! super informative. Is there a way to pull an inventory report with landed cost? I've found average, but not landed
Great Information, Hector. 2 questions for you: 1. what if that vendor bill had been in a foreign currency yet the freight / customs bills are in USD ? Wondering how that would work, the freight / customs bills are in USD...but since the landed cost items are allocated in the Vendor Bill (foreign currency, in my case Euros) ... wondering how that all might work.. I'm assuming I'd allocate to convert the USD landed cost items into Euros... and that the conversion factor would put them at USD however, when the bill is paid to the vendor and the exchange gain / loss account is affected.. seems like it will be convoluted. Am I missing something? 2. Do you work with Netsuite?
Hector, thank you for your tutorial. I love it. I want to implement, but having troubles since I already have existing inventory. How do I proceed? I would like to remove all the items and introduce the items back using your method. Do you suggest I remove them via inventory adjustment or credit memo? Please kindly assist.
Hi, Hector. Is there any way to add the cost (USD 1.67) automatically on the prices of Bill? I ask this because every Bill I have has more than 3.000 items and update the price of every item one by one will require a lot of time. Thank you so much !
You can by adj quantity and value inventory and add the new total of inventory assets means if inventory assets 10 and cost of freight 5 add the new value 15 in this case you not need to edit every bill go from inventory adj by quantity and value
Dear Hector Thanks for the video. Can I go back and change old bills according to your method ? Will it change the inventory valuation in the past ? I have been using QB for the past two years. Or do I have to start afresh?
Hector, as always, you do superb presentations. My question is, does this work equally well for FIFO inventory under Advanced Inventory as it does for Average Cost? Someone else told me it would be a problem.
Great workshop. You are solving a problem for the whole world :). Questions: - what do you mean by the shipping or customs factor? & how to determine them? - can you do custom fields on QBO POs ? Thanks
That's right. However in the video you had the factors calculated before doing the manual formulas in excel. Hence my question of how they were determined?
Dear Hector I need your help. My problem is that for one of my customers, I deliver my goods to one of his stores and then he spreads those goods to his other stores himself but charges me extra for that service. This charge is based on the volumetric weight(length, height, weight) of the goods that I deliver to him. Can I add extra fields with my items and calculate this cost in QuickBooks? Or do I have to do that manually?
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Mr. Hector you nailed it. I am following you from almost two years now and would recommend everyone to watch his videos especially Quickbooks users. I myself is certified chartered accountant ACCA UK so thank you again.
:) thanks
Wow. You nailed this video. I’ve been trying to figure out how to do this for months. Thank you so much.
Thanks for the quick overview of how to accurately calculate total landed cost so it does not interfere with COGS giving true profit reporting. Makes sense to put those expenses there to get a true landed cost to make an accurate pricing point. Thanks, Quinn.
no problem
Thank you for this great video, Mr. Hector. I have been really facing the challenge of landed cost recording! A really great solution for my challenge. Thank you much.
What if the shipping has a different vendor and needs to be paid separately? Do I still expense that even though it's in the landed cost?
Mr. Hector, thank you very much for sharing all your knowledges with us, you are saving lives. The only question I have is how do we determine the Customs Factor?
Its estimated based on volume percentages
About the transaction of allocation of freight cost.
There is a problem
For example when u make the transactions u did unit price for example was 2 after transaction became 2.3
The proplem is when u try to make credit memo to the vendor the unit price stay2.3
It suppose to became higher because fright cost stay in inventory
U got my point??
What is the solution?
Thank you so much!! I've been struggling with landed cost and have a separate spreadsheet to calculate the true margin. This helps so much. Our customs and freight bills come in 2 months or more after the product bill. Can we just change the customs and freight bills by months? Will that cause a problem especially when the bills cross fiscal year end? Again thank you so much for these videos!
Yes crossing the year end could be an issue, youlll need to back date those bills
Great demonstration. Exactly the steps I needed to learn how to do. Thank you!
good.. is not a simple task.. a lot of people are disappointed with the manual process.. but is the only way to get it done
+Hector Garcia (CPA) Having struggled to keep accurate records off-line, I think the manual process is pretty straight-forward, and once it's been done several times it will be pretty simple. Thanks again.
Great video Hector.. Is it the same process for QB Online?? Do you have another video for this?
Same
@@HectorGarciaCPA Thank you...
Hi Sir,
This video helps a lot and justified for allocating the expenses to the cost of goods,Thanks. This helps us to fix our margin , with better clarity. however my doubt is the PO remains the same?, I noticed you did not change in this video as well, and QB did not give alert for the difference in price, what will be the impact in the books of accounts, we need to check and refer to the old PO's, when ever we send to the supplier. Iam new to quick books hence phence lease help me to under this logic.
PO stays the same.
Thank you for this information Hector! I have a question regarding how to calculate the customs factor. I know the customs fees we will be charged based off of the HS code for our products but do I also need to include the other fees associated with importing the shipment i.e. handling fees when the shipment arrives at port, document fees etc to get a true customs factor?
Christina Johansen its hard... you may want to use an approximation.
That's what I was thinking. Appreciate your help Hector!
HI Hector, Good stuff. Thanks for uploading. But usually the foreign vendor would bill you in a foreign currency and the import duty and custom clearance charges etc are in local currency. How would you handle that? Would you convert the local charges into foreign currency or do you use some other method altogether? Thanks.
+STM Construction Equipment too complex to answer through here... it requires to see te numbers and documents
Hi @STM I have the same issue, we buy goods from the UK in £'s but the duty and freight is in Dollars. did you find a solution ?
Thanks for all your tutorials. I noticed you created Freight as a item under "Other Charges", but I was wondering about "FREIGHT COSTS" and "SHIPPING INCOME". Are these also custom? There is a preset freight option, but I couldn't find "SHIPPING INCOME" as an option. Is it ok to use "Postage and Delivery" as the income account when creating this Freight item?
You can use any accounts you have in therre
@@HectorGarciaCPA thanks!!!
Great presentation Hector and very helpful
+Linda Carlton :)
how to charge delivery charges from customer with invoice can please tell me about it
Create a separate line for delivery charges
Sir you mean create an account for other charge in the item list and then charge through it@@HectorGarciaCPA
Is it possible to track landed costs for multi-currency transactions? We have suppliers all over the world.
Not yet
Hector - This is so helpful. Thank you! What if the ONLY inventory costs are external costs? (There is no actual purchase. Just the cost of removal of the material and transportation back to warehouse. (Labor or subcontractor, transportation, fuel, etc.) Thanks.
Ann Nelson you can allocate your non-cash costs the same way shown on the video. It is just harder to asking a number to it
Hi...you are doing a great job making such info available. Thank you.
Behrouz Aftabi glad you like it
Thanks Hector. This presentation is very helpful but I wanna know details from vendor activities .e.g Items, Quatity, price, and amounts. The price should not be included the frieght costs or landed costs.
Abdirahman Abdullahi in that case don't do what I say on the video
Thanks Hector again for your sincerity.
Hi Hector , Many Thanks for your tutorial. Can you please advice this same way i can treat local clearing & Transportation charges, Air Port handling charges whatever costs ? Our Company Imports equipment for selling.....
Sinaj Ak they would all follow the same process
Many Thanks dear Hector for great support..!!!
Hector, hiw to tie COGS to QB desk top another inventory software. How can I adjust my landed cost?
Patricia Herrera that’s a loaded question... I can answer simpler questions
@@HectorGarciaCPA sorry, is there another way to adjust my landed cost? Since I do not use QB inventory. Meaning when I enter my cogs from the software already includes the landed cost, so I have to remove it from my expense otherwise will be overstated. How do I do that?
Patricia Herrera journal entry into Inventory Asset and COGS
Hi Hector, thank you for your videos! super informative. Is there a way to pull an inventory report with landed cost? I've found average, but not landed
Not possible... once landed cost is applied; it becomes part of the avg, cost
Great Information, Hector. 2 questions for you:
1. what if that vendor bill had been in a foreign currency yet the freight / customs bills are in USD ? Wondering how that would work, the freight / customs bills are in USD...but since the landed cost items are allocated in the Vendor Bill (foreign currency, in my case Euros) ... wondering how that all might work.. I'm assuming I'd allocate to convert the USD landed cost items into Euros... and that the conversion factor would put them at USD however, when the bill is paid to the vendor and the exchange gain / loss account is affected.. seems like it will be convoluted. Am I missing something?
2. Do you work with Netsuite?
+1hamm yeap.. you have to do the USD translation. No I dont work with NetSuite... :(
Very informative. Great presentation. Thanks and Regards
Learning Point Academy great! You welcome
Wondering how to add labor associated with the cost of adding something to inventory?
That could be done as well using Landed Cost.
That could be done as well using Landed Cost.
Hector, thank you for your tutorial. I love it. I want to implement, but having troubles since I already have existing inventory. How do I proceed? I would like to remove all the items and introduce the items back using your method. Do you suggest I remove them via inventory adjustment or credit memo? Please kindly assist.
No.. just the Value Adjustment option
Hi Hector
Is Customs Factor means HS Code?
Thanks and Kind Regards,
That me making things up... doesn’t mean anything specific
Hi, Hector.
Is there any way to add the cost (USD 1.67) automatically on the prices of Bill? I ask this because every Bill I have has more than 3.000 items and update the price of every item one by one will require a lot of time.
Thank you so much !
Fernando Rodrigues no
You can by adj quantity and value inventory and add the new total of inventory assets means if inventory assets 10 and cost of freight 5 add the new value 15 in this case you not need to edit every bill go from inventory adj by quantity and value
Dear Hector
Thanks for the video. Can I go back and change old bills according to your method ? Will it change the inventory valuation in the past ? I have been using QB for the past two years.
Or do I have to start afresh?
You can but it will change your financial statements... yes
@@HectorGarciaCPA i want it to change the financial statements. So that it will give me more accurate profit and less statement. Thanks you the answer
Shaharyar Sheikh you welcome, good luck
Sir thank you so much!!! You are a good bookkeeper.
Thanks.
Hector, as always, you do superb presentations. My question is, does this work equally well for FIFO inventory under Advanced Inventory as it does for Average Cost? Someone else told me it would be a problem.
Michael Raike woks just fine.
Hector You are the best. Eres el número 1 Gracias.
+Dalton Ventura gracias
Great workshop. You are solving a problem for the whole world :).
Questions:
- what do you mean by the shipping or customs factor? & how to determine them?
- can you do custom fields on QBO POs ?
Thanks
A. Al-kawari well, different countries have different rates for different items.. the "factor" I was referring to is the cost for each item.
+A. Al-kawari QBO can really manage custom fields the way desktop can
thanks will look into it
That's right. However in the video you had the factors calculated before doing the manual formulas in excel. Hence my question of how they were determined?
Hi if I wanna all the inventory item to the balance sheet it is okay..? Than all da inventory go to WIP nd balance will be in stock ..?
Allocating freight sends the value to the balance sheet, that is correct... no WIP, just to the inventory items
How did you arrive at .93 and 1.4 customs factors?
Spreadsheet calculations
Wow Hector! you have solved problem i was facing thnks alot
great!
Thanks for your great videos Hector, could this also work if you enter bills in a foreign currency? What would you think is best?
Max Crombach it should be the same
But what if the freight costs are made in EUR while the import is in USD?
Max Crombach use the converted rate
How do i use custom fields on quickbooks online?
russell choudhury there are no item-level Custom fields on QBO
@@HectorGarciaCPA Ty for the fast response. So is there no way to do the second method on qbo? Maybe using a app
why not make an inventory value adjustment?
+Nestor Diaz that can be done as well...
Dear Hector
I need your help. My problem is that for one of my customers, I deliver my goods to one of his stores and then he spreads those goods to his other stores himself but charges me extra for that service. This charge is based on the volumetric weight(length, height, weight) of the goods that I deliver to him.
Can I add extra fields with my items and calculate this cost in QuickBooks? Or do I have to do that manually?
You could add a separate line for that.. or use the same technique
And no, Quickbooks won’t let you add volumetric fields to calculate anything
Great information, Hector. Thanks. I have a client who can really use this info. Mahalo.
pakelekia2552 great!
Too much energy. Erp system should calculate and breakdown the results just by linking Bills
arazim777 you are right.. maybe in QuickBooks 2019? 2020? The problem is most ERP systems cost 4x what quickbooks cost, so is not a fair comparison.
me encanto !
Thank you nice
Sir !