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Landed cost allocation not retroactive

edited Dec 21, 2021 11:24PM in Ask A Guru 4 comments

Hello,

We had a PO that we did not receive the shipping/freight charges for until after the units were used to fulfill an order. We have since gone in and added the charges as a landed cost on the inventory fulfillment - however, the P&L was not updated to reflect the appropriate COGS for that item, instead those landed costs were allocated to all remaining goods in stock. I'll try to breakdown the events below.

PO was issues for 1500 units of 6 different widgets.

All 9000 widgets were received

7,344 widgets were shipped out, invoiced and paid

We received the shipping/freight charges and bill for all 9000 widgets. The cost per unit of widget was higher than anticipated, and the shipping/freight was in addition.

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