Landed costs

The cost of a product is not only what you pay the factory. Freight, customs duty and other bills for getting a shipment to your warehouse all add to it. Flyte records these as landed costs on the shipment and spreads them across the lines on it, so every PO and order shows a true cost and margin.

#What counts as a landing cost

Add every bill for landing the shipment as its own charge line: the forwarder's, courier's and customs broker's bills. Each charge has a type:

• Freight
• Duty
• Royalty
• Fee
• Other

Good to know

Freight the factory puts on its own invoice (PO Factory paid freight? → Yes) is already in the PO total. Do not add it again here.

#Step by step

1. Open the shipment and go to Landed costs.
2. Press Add charge.
3. Choose the type, and enter a description, invoice number, the amount excluding tax, and the currency it was billed in.
4. Press Save. Repeat for each bill.
5. Choose Spread by:
   • Volume (m³) — each line carries a share in proportion to the space it takes,
   • By units — an equal share per unit.
6. Until you spread, the figures are a preview marked "Not spread".
7. Press Spread costs and confirm.

Each charge is divided across the shipment's lines. Each line's share is converted at its own PO's exchange rate and 🔒 Locked into that PO's landed cost. A later payment at a different rate does not move it.

#While costs are locked

• You cannot add items to or remove items from the shipment.
• You cannot delete the shipment.
• Closing or reopening the shipment does not touch the costs.

#Changing costs after spreading

1. Press Remove costs.
2. Edit, add or remove charges.
3. Spread again.

A bill that turns up weeks later is another charge like the rest. You can add it on an open or a closed shipment.

#Spreading by volume needs a volume

Volume is worked out from each product's folded size. If any product on the shipment has no volume, spreading by volume is refused and names the product. Set its folded size on the product's Details tab, or spread By units instead.

#Sample shipments

Tick Sample shipment? on a shipment of samples. Its costs are left out of products' average landed cost, so a small sample run does not inflate your typical costs.

#Where landed costs show

• On each PO, in its landed-cost figures.
• In each order's Costs & margin tab.
• In Financials, where freight and duties spread from shipments are part of the cost of goods. Until a shipment is spread, the product's estimate is used. See Financials.

#If your account has Garment Works switched on

Once costs are spread, Send landed costs to Garment Works puts them on the shipment PO's Landing Costs tab in Garment Works exactly as they are locked in Flyte, so nobody re-keys them. To correct them, remove costs, spread again and send again; the new figures replace the old. Garment Works holds at most 10 charges per shipment PO and only accepts landed costs until the shipment PO is converted to an invoice there.

#Common questions

Spreading by volume is refused. A product has no volume. Set its folded size, or spread by units.

Per-unit freight looks far too high. If it is a sample run, tick Sample shipment?.

Can I add a duty bill after closing the shipment? Yes. Add the charge, then remove costs and spread again if the shipment was already spread.