Landed Cost and Foreign Currency Purchasing for POS
An imported product can cost more than the supplier unit price. Keep the purchase currency, conversion, freight and other approved costs connected to the stock received.
A landed cost example you can check by hand
Suppose 100 units cost USD 10 each. At an illustrative conversion of 1 USD = 6.80 TTD, the goods cost TTD 6,800. Allocate TTD 680 of freight evenly across the 100 identical units. The recorded landed cost is TTD 7,480, or TTD 74.80 per unit.
Selling one unit for TTD 100 produces TTD 25.20 before other expenses in this example, a 25.2% gross margin. The example excludes taxes, duties, financing and other charges. Ask your accountant which costs and tax amounts belong in your inventory value.
| Cost step | Amount |
|---|---|
| Supplier goods: 100 x USD 10 | USD 1,000.00 |
| Goods converted at illustrative 6.80 | TTD 6,800.00 |
| Allocated freight | TTD 680.00 |
| Recorded cost for 100 units | TTD 7,480.00 |
| Cost per unit | TTD 74.80 |
Choose the allocation rule before receiving
Equal allocation suits this example because every unit is identical. A mixed shipment may need allocation by value, weight, volume or a documented combination. Choose a rule that the purchasing team and accountant can explain.
Save the supplier invoice, freight reference, conversion rate and allocation method together. When an additional charge arrives later, retain the original receiving record and the approved cost correction. The sum of all allocated portions should match the cost being distributed.
Test partial deliveries and supplier returns
Create an order for ten units and receive six. The system should show six received and four still expected. Receive the remaining four using a separate delivery reference, then return two to the supplier. Review quantity and cost records after each event.
Confirm how the system handles damaged stock, excess delivery, a changed supplier price and a receipt in another location. A repeated receiving request should return the original result. It should leave both quantity and cost unchanged.
Trace a margin back to its costs
Request a report for one product showing selling price, discount, recorded cost and quantity sold. Verify which cost method applies when newer stock arrives at a different price. Make the same check for bundles, packs and returned goods.
Lightspeed describes purchasing and inventory workflows that include landed costs and price books. Use those specific functions as prompts for a supplier demonstration, with the proposed plan and region confirmed.
DSDillon POS currently provides base currency purchasing and stock receiving. Foreign currency supplier orders, advanced partial receipts and landed cost allocation are part of its premium development scope. Agree the calculation and test data before commissioning those workflows.
Questions before you decide
Should freight be divided equally across every product?
Select and document an allocation method suited to the shipment. Equal quantity, value, weight and volume allocation can produce different unit costs.
Does an exchange rate update change a received purchase?
The system should retain the rate recorded for that purchase. Later cost corrections and settlement differences need their own dated records.
Tell us how your business sells.
Share your business type, locations, currencies, invoice requirements and payment providers. We will scope the workflow, connections and acceptance tests.
