Best practice of landed cost – Anglo Saxon in Odoo
Ideal (general) workflow:

The ideal workflow is creating purchase order, receiving product, creating bill (optional) before selling the product, create a landed cost.

This way, we make sure to include landed cost into product cost. Hence, when we sell the product, Odoo will automatically include the landed cost to the cost of goods sold.

When selling product, make sure we deliver product first then invoice. If we invoice first before delivering the product, the landed cost will not be captured correctly.

The pre-requisite:

1.      Anglo Saxon which reflects the cost of goods sold on selling not purchasing.

2.      Setup product category. Apply average or FIFO costing method. And inventory valuation as ‘automated’.

3.      The workflow takes United states as an example.

Workflow:

1. Create purchase order for product PHT2, qty 5, price $100.
Then receive: Lande/IN/00003
By creating vendor bill for the product, stock interim received account $500 will be offset.

2. Create landed cost $10 (Notes: landed cost creating must be prior to selling the product), apply to Lande/IN/00003

Landed cost journal entry: STJ/2023/06/0008

This means $10 divided equally to 5 qty product,
Pitfall: Product cost is not automatically update to $102. But Odoo will remember to include landed cost when we deliver and sell the product.

Inventory valuation report: Product PHT2 shows two lines.
Line 1: Qty 5, value $500
Line 2: Qty 0, value $10. The value of $10 represents the landed cost.

3. Create landed cost bill for $10, then stock interim received account $10 will be offset.

4. Create a sales order for product PHT2, qty 1, $190. Deliver and create invoice.

Odoo automatically create cost of goods sold (expense account) journal item $102 (purchase price + landed cost)

Then product PHT2 cost will be update to $102.

Video:

https://www.youtube.com/watch?v=O5-sX35WW5M