Add freight, duty and other costs to a purchase order

Before you start

How landed cost works explains allocation and cost layers. This guide follows the charge-entry and review screens.

Add a charge to the PO

1. 1

   Step 1: Open Add charge

   In the PO's Charges card, click Add charge. Add charge to opens with the PO number.

   The action is hidden on finalized POs and for roles that cannot enter charges.

2. 2

   Step 2: Enter the type and amount

   Choose Type: Inbound shipping, Duty/import charge, Brokerage, Insurance, Handling, Tariff or Other charge.

   Enter the amount and choose whether This amount is Estimated or Final. New charges start as Estimated.

   Add a description and Reference, such as an invoice or waybill number. The charge is now identifiable when you review its allocation.

3. 3

   Step 3: Choose what the charge covers

   Under Applies to, choose Whole purchase order or Specific items or options.

   For a targeted charge, tick every item or option it covers. A charge on a fabric option changes that option's cost, leaving the rest of the sofa unchanged.

   Review the target count before choosing the split method.

4. 4

   Step 4: Choose the allocation method

   Choose By value, By quantity or Manual. The window opens on By value.

   By weight is unavailable because PO unit weights are not recorded. For Manual, use Review manual split, make the shares add up and choose Confirm this manual split.

   A missing vendor cost prevents a value-based split. Set the cost or choose an appropriate alternative.

5. 5

   Step 5: Review the preview and add

   The preview appears once you enter an amount. Check Units, Allocated and Landed / unit. The breakdown names each charge, including its reference or description where types repeat.

   The footer separates the amount posting to an existing receipt from the amount waiting for another delivery. Click the Add charge button showing the amount.

   The Charges card now shows its Estimated or Final badge and allocation.

   

6. 6

   Step 6: Update the charge when invoiced

   When the invoice arrives, click Edit on the charge. Correct the amount if needed, choose Final, then click Save charge.

   To remove it, use Remove charge and read Remove — are you sure? before confirming.

   Changing a whole-PO charge after goods arrived records the difference against earlier receipts. Use cost corrections when the vendor cost itself is wrong.

Record charges during receiving

1. 1

   Step 1: Check the goods cost

   On the receiving page, enter Vendor cost per Unit or as the invoice Total for the arriving quantity.

   The other amount is calculated. Without Enter costs and charges, the field is unavailable and the PO price is used.

   The helper shows template components only when they match the PO price. Otherwise, it identifies the PO price and the separate template cost.

2. 2

   Step 2: Add the delivery's charges

   Under Additional charges on this receipt, click Add charge. Enter the type, reference, amount and Est. or Final state.

   Choose all arriving lines, one line or an option. Receipt charges split by value over the units arriving in this receipt.

   Enter quantities first. A charge cannot be allocated to a delivery with no covered units.

3. 3

   Step 3: Check the receipt summary

   Review the Landed box and Receipt summary. They show goods, charges and the resulting landed amount.

   Read the state: Final, Estimated or Cost missing. A missing vendor cost must be resolved before the total can be treated as complete.

   Post the receipt when the quantities and costs match the delivery.

4. 4

   Step 4: Review charges on the final receipt

   When the receipt accounts for the last units, Review PO charges before the final receipt opens if the PO has charges.

   Keep each charge unless it no longer applies. Tick Cancel beside a charge only when it should be reversed.

   Choose Keep charges and post receipt or Cancel charges and post receipt. Without charge-editing access, the review is read only and offers Post receipt.

   

   Warning

   Cancelling a charge in this review reverses it from earlier receipts and inventory costs. Check the invoice and existing receipts before confirming.

Screen reference

Finalize or reopen the PO

1. 1

   Step 1: Review costs before finalizing

   After at least 1 receipt, check missing costs and estimated charges. Use Needs cost review to find unfinished cost work.

   Edit confirmed charges to Final and fill missing vendor costs before closing the PO where possible.

2. 2

   Step 2: Finalize the purchase order

   Click Finalize. If units are still outstanding or charges remain estimated, the confirmation describes them and offers Finalize anyway.

   Read the effect before confirming: finalization closes costs and stops receiving until the PO is reopened.

   The page then shows This purchase order is finalized.

3. 3

   Step 3: Reopen with a reason

   Use Reopen to edit or Reopen in the PO menu. Enter Reason and confirm.

   Charges, receipts and permitted line changes become editable again. Activity records the reopening reason.

What happens next

Landed costs reflect the saved allocations. Previously received costs change through recorded adjustments, preserving the receipt's history.

Finalization locks charges, receipts and line items; attachments remain available. With QuickBooks connected, it also closes the linked PO through accounting sync.

If something goes wrong