Accounting and Localization mailing list archives


Re: Fwd: Accounting Entries For landed cost

Elico Solutions Pte Ltd, dominique kon sun tack
- 2017年03月17日 05時03分52秒
Your accounting flow does not seem balanced.

if the goods cost 1000, and the shipping cost are 20

Then the accounting entries should be:
- debit inventory: 1020
- credit payable: 1020

This can be done is several steps. 

Receive the invoice (goods only):
debit: goods transit 1000
credit: payable: 1000

Receive the goods:
debit: inventory: 1000
credit: goods in transit: 1000

Receive invoice for the shipping charges
debit: inventory: 20
credit: payable: 20


Dominique KON-SUN-TACK  [Project Manager]
Odoo Gold Partner, best Odoo Partner 2014 for APAC

Mobile: + 65 8502 2399
Skype: dominique_elico

On 17 March 2017 at 16:50, bhavik vyas <> wrote:
Hello Community members!
I have situation where i am bit confused about landed cost system in the odoo.

Currently in odoo landed cost entries are created as
Expense - credit  -> inventory -debit

That means it will reduce the amount of expense and increase the amount of assets in  Profit & Loss statement and Balance sheet.

Now let say we will also create invoice for the landed cost such as for transportation and invoice will be issued to transportation company similar story with freight and insurance.This will be vendor bill and entries will same as any normal purchase.and on validating this entry it will credit in receivable account and debit in expense account.

If we check all entries for this single purchase order than expense entries will be nullified 
expense credited in landed cost entry
expense debited in invoice entry.

so ultimately 
inventory (i.e assets) are debited 
creditors (i.e also assets) are credited.

i don't really understand how this odoo created landed cost effect on the book keeping.

My client says that it should be like
credit in creditor (i.e actual vendor + vendor providing shipping and all)
debit in expense (product cost +  landed costs)
debit in assets (inventory account)

Bhavik Vyas
ITMusketeers Consultancy Services LLP

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