SYSPRO Landed Cost Tracking: Freight, Duty and Allocation
syspro landed cost tracking
Also searched as
- syspro landed costs freight duty
- syspro landed cost allocation
- syspro import costs grn
Short answer
Landed cost tracking adds freight, duty, insurance, brokerage and other import charges to the cost of received stock so that inventory carries the true cost to your door. In SYSPRO you define cost types, collect the charges against a shipment or purchase order, allocate them to the received lines by value, quantity, weight or volume, and the stock cost and GL valuation update accordingly.
Applies to: SYSPRO 7 and 8 where Landed Cost Tracking is licensed; menu names and options may vary by release, so confirm in your installation.
How to set up and run landed cost tracking in SYSPRO
- 1Confirm the Landed Cost Tracking module is licensed and enabled, and decide which stock codes and suppliers will use it.
- 2Define the cost types you need (freight, duty, insurance, clearing, local haulage) and the GL accounts or accruals each one uses.
- 3Choose an allocation basis per cost type: value, quantity, weight or volume. Duty usually follows value, freight often follows weight or volume.
- 4Create the purchase orders and receive goods against them with the normal GRN process, tying receipts to the shipment where your setup requires it.
- 5Enter the actual freight and duty invoices against the shipment, then run the allocation so each received line gets its share.
- 6Review the resulting cost update and the journals, and reconcile inventory valuation and the GRN or clearing accounts for the period.
What landed cost changes
Without landed cost, stock is valued at the supplier price only, and the freight and duty go to expense. That understates inventory and overstates margin on the first sales. With landed cost tracking, those charges are capitalised into the item cost, so cost of sales reflects the true cost of getting the item into your warehouse.
This matters most for imports with high duty, or low-value, heavy goods where freight is a large share of cost. It also changes standard cost variances: if you use standard costing, landed charges can post as purchase price variance rather than increasing the item cost.
Timing: estimates versus actuals
Shipments are usually received before the freight and duty invoices arrive. Many companies post an estimate at receipt and true up when actual invoices are matched. Decide your policy before go-live, otherwise inventory is revalued retroactively and some of the stock has already been sold at the old cost.
For items that turn quickly, the difference between estimate and actual may already be in cost of sales by the time you allocate. Build a monthly review of unallocated landed cost so charges are not left sitting in a clearing account.
Costing method interactions
Average-cost items absorb landed charges into the average, so a late allocation affects the cost of whatever is on hand at that moment. Standard-cost items usually keep the standard and show the landed difference as variance, which you then review and adjust at the next standard cost update.
Check how your company is set up before assuming. The same landed charge can be capitalised or expensed depending on cost basis and configuration, and the answer should be agreed with finance rather than discovered in a month-end variance.
Try it here, free
South Africa Import Landed Cost and VAT Calculator
Work out the true rand landed cost of an imported component, including duty, the 10 percent VAT uplift and cash-flow VAT, and see how the exchange rate moves it.
Common pitfalls
- !Allocating duty by weight or freight by value without thinking, which distorts item costs.
- !Leaving actual invoices unallocated so charges accumulate in a clearing account.
- !Not agreeing estimate versus actual policy with finance.
- !Forgetting that standard-cost items show landed charges as variance.
- !Missing exchange rate effects when freight is invoiced in another currency.
How an ERP-grounded AI assistant handles this
Netray adds a private AI layer to the SYSPRO you already run, including on-prem installs where the SQL Server and application server never leave your network. ERPray answers questions over live SYSPRO data with read-only SQL or e.net queries it shows you, under the operator's own SYSPRO security, so a planner or accountant can ask the question in plain language and see exactly which tables or business objects produced the answer. Any write-back, such as posting a transaction, goes through a human approval step. The model is open-weight and runs on your own GPUs, so company data is not sent to a public AI service.
Frequently asked questions
What is landed cost in SYSPRO?
It is the total cost of bringing an item to your warehouse, including purchase price, freight, duty, insurance and clearing charges. SYSPRO's landed cost tracking collects those charges and allocates them across received stock so inventory is valued correctly.
How are landed costs allocated?
By a chosen basis, typically value, quantity, weight or volume, defined per cost type. Duty commonly follows value and freight follows weight or volume, but the right basis depends on your goods and your accounting policy.
Does landed cost change standard cost?
For standard-cost items the standard is normally unchanged and landed charges post as variance, which you review before the next standard cost update. For average-cost items the charges feed the average cost directly.
What if freight invoices arrive after the goods are received?
Use an agreed policy: either accrue an estimate at receipt and true up when the invoice is matched, or allocate when actuals arrive. Review unallocated charges monthly so nothing sits unresolved.
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