For finance + ops

What does this actually cost?

"What's our cost per unit?" should be a one-second answer. For most growing e-commerce businesses, it's a one-hour reconstruction — invoice in Xero, freight bill in a folder, customs duty in another folder, and someone in the room saying "yeah but we got a discount on that container." By the time you have a number, the question has moved on. Margin decisions are getting made on guesses.

The cost of an item is rarely just the supplier invoice.

Especially if you import. By the time a unit reaches your shelf it has freight, duty, clearing fees, possibly insurance, and sometimes destination handling stacked on top. Spreading those costs across the units in the shipment proportionally — and posting the result into the inventory ledger so your COGS reflects reality — is what ERPNext calls a Landed Cost Voucher. It's mundane bookkeeping in any serious operation, and it's nearly impossible to do correctly in Xero alone.

Example — 200 units imported
CostPer unit
Supplier invoice (FOB) R 180.00
Sea freight (allocated by weight) R 14.50
Customs duty (allocated by value) R 18.00
Clearing & port handling R 4.20
Insurance R 1.10
Local transport to warehouse R 2.20
True landed cost R 220.00
If your COGS only carries the R 180 supplier invoice, you're booking a 22% margin where you actually have a 0% margin. The retail price hasn't changed — but the cost basis behind it has, and your finance team needs to know about it on day one of receipt, not at year-end stocktake.

How ERPNext does it (in three forms you'll actually use).

1. Goods Receipt Note. When the shipment arrives, you receive against the original Purchase Order. Stock-on-hand goes up at supplier price. The accounting entry hits a Stock-In-Transit account, properly.

2. Landed Cost Voucher. When freight, duty, and clearing invoices arrive (often days or weeks later), you raise a Landed Cost Voucher referencing the GRN. ERPNext allocates the additional charges across the received items by amount, weight, or quantity — your choice. Stock valuation and COGS update; Bin valuation reflects the true cost.

3. Stock-level cost rolls up. Per-item moving-average or FIFO valuation is automatic. "What does this actually cost?" is now a query, not a reconstruction. The accounting trail is intact — a Landed Cost Voucher posts journal entries that align with how SARS / HMRC / IRS want you to keep stock valuation.

Your CFO shouldn't need an hour and three browser tabs to know what a unit cost you. The system that holds your stock should hold your cost basis too — and they should never disagree.

Other ways your tooling is showing the strain

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More on the ScanMan stack.

Cost-per-unit truth is one piece of what a real WMS buys you. Read on at scanman.co — the WMS, the open-source robotics positioning, and where it's all going.