Account type: Expenses Included In Valuation

Expenses Included In Valuation is the account type that lets freight, customs duty, insurance and loading charges become part of stock cost rather than a separate expense, which is how Nepali customs clearance on imports should be treated. A Landed Cost Voucher debits Stock In Hand and credits this account with the charges; the transporter's or customs agent's Purchase Invoice then debits this account and credits Creditors. Over time the account nets to zero, because every charge pulled into stock is matched by a bill. A standing balance means a charge was applied without a bill, or a bill was booked to an ordinary expense and the goods are undervalued.

Landed unit cost = (purchase amount + allocated charges) / qty; the account nets to zero when bills match vouchers

1. 01Go to Accounts Setup > Chart of Accounts, expand Expenses > Cost of Sales.
2. 02Open Expenses Included In Valuation - YFF and confirm the Account Type.
3. 03Go to Stock > Landed Cost Voucher, add the Purchase Receipt and Rs 2,000 freight, submit.
4. 04Post the transporter's Purchase Invoice with this account as the expense head.
5. 05Open General Ledger on the account; debits and credits should cancel each month.

Set on the account of that name and use it in purchase tax rows marked Valuation.

Rs 2,000 freight on the chairs lands in stock cost through this account.