I’m having an issue with Landed costs (again).
I’m trying to add customer shipping costs as a landed cost to the cost of out order so that it not only is considered Cost of Sales (for the income statement), but is a part of the Cost of Sales for the customer’s shipment.
Our commissions are calculated on margin dollars (not revenue) and the shipment cost is very much a part of the cost of a sale. But when I look at the sale margins after adding a shipping landed cost to the customer delivery, it’s not included in the costs (it is in the CoS account) so the order margin is overstated.
I wondered if the LC had to be added to the delivery (transfer) before the invoice was created, but it behaves the same way when I do that.
Do I misunderstand, and there’s no way to add a shipping LC to a delivery and have it actually record against the CoS for the shipment, not just the CoS account?
