Landed costs
For example, the price paid on the supplier's final invoice may differ from that on the original order and may include additional costs such as customs duty or delivery charges. These costs may appear as a separate line on the supplier's invoice, or may be covered by a separate invoice which can be allocated to one or more original invoice.
The following terminology is used with Landed Costs:
Apportioned Amounts
The amount of the charge to be apportioned over the goods items. For example, a freight charge of 100 GBP may only have 70 GBP apportioned.
Expensed Amount
The amount of the charge that is not to be apportioned over the goods items. For example, for a charge of 100 GBP, if only 70 GBP is to be apportioned then the remaining 30 GBP is to be expensed. This amount is the amount an organization will incur as an cost within its operating accounts, and is not transferred to inventory.
Suspended Amounts
The amount that is to be apportioned, but the user has yet to decide what goods lines to apportion it over. For example, of the 70 GBP to be apportioned, the user may have yet only apportioned 40 GBP to one goods line, and the other 30 GBP is suspended until the user identifies the other goods line to apply the charge to.