odoo-forge-bundle 0.1.0

package/payload/skills/odoo18-docs/references/docs/applications/inventory_and_mrp/inventory/product_management/inventory_valuation/inventory_valuation_config.md

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+---
+title: "Automatic inventory valuation"
+source_url: "https://docs.odoo.sbggai.top/applications/inventory_and_mrp/inventory/product_management/inventory_valuation/inventory_valuation_config.html"
+---
+
+=============================
+# Automatic inventory valuation
+
+.. |right arrow| replace:: :icon:`fa-arrow-right` :guilabel:`(right arrow)`
+
+All of a company's stock on-hand contributes to the valuation of its inventory. That value should
+be reflected in the company's accounting records to accurately show the value of the company and
+all of its assets.
+
+By default, Odoo uses a periodic inventory valuation (also known as manual inventory valuation).
+This method implies that the accounting team manually posts journal entries, based on the physical
+inventory of the company, and warehouse employees take the time to count the stock. In Odoo, each
+product category reflects this, with the :guilabel:`Costing Method` set to :guilabel:`Standard
+Price`, and the :guilabel:`Inventory Valuation` (not visible by default) set to :guilabel:`Manual`.
+
+.. image:: inventory_valuation_config/inventory-valuation-fields.png
+   :align: center
+   :alt: The Costing Method field is located on the Product Categories form.
+
+Alternatively, perpetual (automatic) inventory valuation creates real-time *journal entries* in the
+*Accounting* app whenever stock enters or leaves the company's warehouse.
+
+This document is focused on the proper setup of automatic inventory valuation, which is an
+integrated valuation method that ensures journal entries in the *Accounting* app match stock
+valuation updates in the *Inventory* app. For an introduction of inventory valuation in Odoo, refer
+to the :doc:`using_inventory_valuation` documentation.
+
+> **warning**:
+>    Switching from manual to automatic inventory valuation may cause discrepancies between stock
+   valuation and accounting journals.
+
+   One [successful strategy ](https://www.odoo.com/r/Kvfg) for switching to automated valuation:
+
+   #. Clear existing stock (possibly with an :doc:`inventory adjustment
+      <../../warehouses_storage/inventory_management/count_products>`)
+   #. Change the inventory valuation method to *Automatic*
+   #. Return the existing stock, with the original monetary value (using an inventory adjustment)
+
+   Once the existing stock is recovered, the Odoo *Accounting* app automatically generates the
+   journal entries to corresponding stock valuation records.
+
+# Configuration
+
+To properly set up automatic inventory valuation, follow these steps in Odoo:
+
+#. :ref:`Install Accounting app and enable specific settings
+   <inventory/warehouses_storage/accounting-setup>`
+#. :ref:`Set Automatic inventory valuation on product categories
+   <inventory/warehouses_storage/valuation-on-product-category>`
+#. :ref:`Set costing method <inventory/warehouses_storage/costing_methods>`
+
+.. _inventory/warehouses_storage/accounting-setup:
+
+## Accounting setup
+
+To use automatic inventory valuation, install the *Accounting* app. Next, go to
+:menuselection:`Accounting app --> Configuration --> Settings`, and in the :guilabel:`Stock
+Valuation` section, tick the :guilabel:`Automatic Accounting` checkbox. Then, click
+:guilabel:`Save`.
+
+> **note**:
+>    Enabling :guilabel:`Automatic Accounting` shows the previously invisible *Inventory Valuation*
+   field on a product category.
+
+.. image:: inventory_valuation_config/auto-accounting.png
+   :align: center
+   :alt: Automatic Accounting feature in Stock Valuation section of Settings page.
+
+Refer to the :ref:`Expense <inventory/warehouses_storage/expense-account>` and :ref:`Stock
+input/output <inventory/warehouses_storage/stock-account>` sections of documentation for details on
+configuring the accounting journals shown.
+
+.. _inventory/warehouses_storage/valuation-on-product-category:
+
+## Product category setup
+
+After :ref:`enabling inventory valuation <inventory/warehouses_storage/accounting-setup>`, the next
+step is to set the product category to use automatic inventory valuation.
+
+Go to :menuselection:`Inventory app --> Configuration --> Product Categories`, and select the
+desired product category. In the :guilabel:`Inventory Valuation` section, set the
+:guilabel:`Inventory Valuation` field to :guilabel:`Automated`. Repeat this step for every product
+category intending to use automatic inventory valuation.
+
+> **note**:
+>    After enabling automatic accounting, each new stock move layer (SVL), that is created during
+   inventory valuation updates, generates a journal entry.
+
+.. image:: inventory_valuation_config/automated-inventory-valuation.png
+   :align: center
+   :alt: Inventory Valuation field on the product category, with its various stock accounts.
+
+.. _inventory/warehouses_storage/costing_methods:
+
+# Costing method
+
+After :ref:`enabling inventory valuation <inventory/warehouses_storage/accounting-setup>`, the
+*costing method* for calculating and recording inventory costs is defined on the product category in
+Odoo.
+
+Go to :menuselection:`Inventory app --> Configuration --> Product Categories` and select the desired
+product category. In the :guilabel:`Inventory Valuation` section, select the appropriate
+:guilabel:`Costing Method`:
+
+
+.. tabs::
+
+   .. tab:: Standard Price
+
+      The default costing method in Odoo. The cost of the product is manually defined on the product
+      form, and this cost is used to compute the valuation. Even if the purchase price on a purchase
+      order differs, the valuation is the cost defined on the product form.
+
+      .. list-table::
+         :header-rows: 1
+         :stub-columns: 1
+
+         * - Operation
+           - Unit Cost
+           - Qty On Hand
+           - Incoming Value
+           - Inventory Value
+         * -
+           - $10
+           - 0
+           -
+           - $0
+         * - Receive 8 products for $10/unit
+           - $10
+           - 8
+           - 8 * $10
+           - $80
+         * - Receive 4 products for $16/unit
+           - $10
+           - 12
+           - 4 * $10
+           - $120
+         * - Deliver 10 products
+           - $10
+           - 2
+           - -10 * $10
+           - $20
+         * - Receive 2 products for $9/unit
+           - $10
+           - 4
+           - 2 * $10
+           - $40
+
+   .. tab:: Average Cost (AVCO)
+
+      Calculates the valuation of a product based on the average cost of that product, divided by
+      the total number of available stock on-hand. With this costing method, inventory valuation is
+      *dynamic*, and constantly adjusts based on the purchase price of products.
+
+      .. list-table::
+         :header-rows: 1
+         :stub-columns: 1
+
+         * - Operation
+           - Unit Cost
+           - Qty On Hand
+           - Incoming Value
+           - Inventory Value
+         * -
+           - $0
+           - 0
+           -
+           - $0
+         * - Receive 8 products for $10/unit
+           - $10
+           - 8
+           - 8 * $10
+           - $80
+         * - Receive 4 products for $16/unit
+           - $12
+           - 12
+           - 4 * $16
+           - $144
+         * - Deliver 10 products
+           - $12
+           - 2
+           - -10 * $12
+           - $24
+         * - Receive 2 products for $6/unit
+           - $9
+           - 4
+           - 2 * $6
+           - $36
+
+      How are unit cost and inventory value calculated at each step?
+
+      - When receiving four products for $16 each:
+
+        - Inventory value is calculated by adding the previous inventory value with the incoming
+          value: :math:`$80 + (4 * $16) = $144`.
+        - Unit cost is calculated by dividing the inventory value by the quantity on-hand:
+          :math:`$144 / 12 = $12`.
+
+      - When delivering ten products, the average unit cost is used to calculate the inventory
+        value, regardless of the purchase price of the product. Therefore, inventory value is
+        :math:`$144 + (-10 * $12) = $24`.
+
+      - Receive two products for $6 each:
+
+        - Inventory value: :math:`$24 + (2 * $6) = $36`
+        - Unit cost: :math:`$36 / 4 = $9`
+
+      > **note**:
+>          When choosing :guilabel:`Average Cost (AVCO)` as the :guilabel:`Costing Method`, changing
+         the numerical value in the *Cost* field for products in the respective product category
+         creates a new record in the *Inventory Valuation* report to adjust the value of the
+         product. The *Cost* amount is then automatically updated, based on the average purchase
+         price of both the inventory on-hand and the costs accumulated from validated purchase
+         orders.
+
+   .. tab:: First In First Out (FIFO)
+
+      Tracks the costs of incoming and outgoing items in real-time, and uses the real price of the
+      products to change the valuation. The oldest purchase price is used as the cost for the next
+      good sold, until an entire lot of that product is sold. When the next inventory lot moves up
+      in the queue, an updated product cost is used based on the valuation of that specific lot.
+
+      This method is arguably the most accurate inventory valuation method for a variety of reasons,
+      but it is highly sensitive to input data and human error.
+
+      .. list-table::
+         :header-rows: 1
+         :stub-columns: 1
+
+         * - Operation
+           - Unit Cost
+           - Qty On Hand
+           - Incoming Value
+           - Inventory Value
+         * -
+           - $0
+           - 0
+           -
+           - $0
+         * - Receive 8 products for $10/unit
+           - $10
+           - 8
+           - 8 * $10
+           - $80
+         * - Receive 4 products for $16/unit
+           - $12
+           - 12
+           - 4 * $16
+           - $144
+         * - Deliver 10 products
+           - $16
+           - 2
+           - | -8 * $10
+             | -2 * $16
+           - $32
+         * - Receive 2 products for $6/unit
+           - $11
+           - 4
+           - 2 * $6
+           - $44
+
+      How are unit cost and inventory value calculated at each step?
+
+      - When receiving four products for $16 each:
+
+        - Inventory value is calculated by adding the previous inventory value to the incoming
+          value: :math:`$80 + (4 * $16) = $144`.
+        - Unit cost is calculated by dividing the inventory value by the quantity on-hand:
+          :math:`$144 / 12 = $12`.
+
+         - When delivering ten products, eight units were purchased for $10, and two units were
+           purchased for $16.
+
+        - First, the incoming value is calculated by multiplying the on-hand quantity by the
+          purchased price: :math:`(-8 * $10) + (-2 * $16) = -112`.
+        - The inventory value is calculated by subtracting the incoming value from the previous
+          inventory value: :math:`$144 - $112 = $32`.
+        - Unit cost is calculated by dividing the inventory value by the remaining quantity:
+          :math:`$32 / 2 = $16`.
+
+      - When receiving two products for $6, inventory value is :math:`$32 + $12 = $44`. Unit cost is
+        :math:`$44 / 4 = $11`.
+
+> **warning**:
+>    Changing the costing method greatly impacts inventory valuation. It is highly recommended to
+   consult an accountant first before making any adjustments here.
+
+.. seealso::
+   :doc:`using_inventory_valuation`
+
+When the :guilabel:`Costing Method` is changed, products already in stock that were using the
+:guilabel:`Standard` costing method **do not** change value; rather, the existing units keep their
+value, and any product moves from then on affect the average cost, and the cost of the product will
+change. If the value in the :guilabel:`Cost` field on a product form is changed manually, Odoo
+generates a corresponding record in the *Inventory Valuation* report.
+
+> **note**:
+>    It is possible to use different valuation settings for different product categories.
+
+.. _inventory/warehouses_storage/accounting-types:
+
+# Types of accounting
+
+With automated inventory valuation set up, the generated journal entries depend on the chosen
+accounting mode: *Continental* or *Anglo-Saxon*.
+
+> **tip**:
+>    Verify the accounting mode by activating the :ref:`developer-mode`, and navigating to
+   :menuselection:`Accounting app --> Configuration --> Settings`.
+
+   Then, in the :guilabel:`Search...` bar, look for `Anglo-Saxon Accounting`, to see if the feature
+   is enabled. If it is **not** enabled, *Continental* accounting mode is in use.
+
+   .. image:: inventory_valuation_config/anglo-saxon.png
+      :align: center
+      :alt: Show the Anglo-Saxon accounting mode feature.
+
+In *Anglo-Saxon* accounting, the costs of goods sold (COGS) are reported when products are sold or
+delivered. This means the cost of a good is only recorded as an expense when a customer is invoiced
+for a product.
+
+So, for **manual** valuation method, set the *Expense Account* to *Stock Valuation* for the current
+asset type; for **automatic** valuation method, set the *Expense Account* to an *Expenses* or a
+*Cost of Revenue* type (e.g. *Cost of Production*, *Cost of Goods Sold*, etc.).
+
+In *Continental* accounting, the cost of a good is reported as soon as a product is received into
+stock. Because of this, the *Expense Account* can be set to **either** *Expenses* or a *Cost of
+Revenue* type, however, it is more commonly set to an *Expenses* account.
+
+Refer to the :ref:`Expense <inventory/warehouses_storage/expense-account>` and :ref:`Stock
+input/output <inventory/warehouses_storage/stock-account>` sections for details on configuring each
+account type.
+
+.. _inventory/warehouses_storage/expense-account:
+
+## Expense account
+
+To configure the *expense account*, which is used in both manual and automatic inventory valuation,
+go to the :guilabel:`Account Properties` section of the intended product category
+(:menuselection:`Inventory app --> Configuration --> Product Categories`). Then, choose an existing
+account from the :guilabel:`Expense Account` drop-down menu.
+
+To ensure the chosen account is the correct :guilabel:`Type,` click the |right arrow| icon to the
+right of the account. Then, set the account type based on the information below.
+
+.. tabs::
+
+   .. group-tab:: Anglo-Saxon
+
+      .. tabs::
+
+         .. group-tab:: Automated
+
+            In Anglo-Saxon accounting for automated inventory valuation, set the :guilabel:`Expense
+            Account` to the `Expenses` account. Then, click the |right arrow| icon to the right of
+            the account.
+
+            In the pop-up window, choose :guilabel:`Expenses` or :guilabel:`Cost of Revenue` from
+            the :guilabel:`Type` drop-down menu.
+
+            .. image:: inventory_valuation_config/external-link.png
+               :align: center
+               :alt: Show **Expense Account** field, and external link icon.
+
+         .. group-tab:: Manual
+
+            To configure the :guilabel:`Expense Account`, choose :guilabel:`Stock Valuation` from
+            the field's drop-down menu. Verify the account's type by clicking the |right arrow|
+            icon, and then ensure the :guilabel:`Type` is :guilabel:`Current Assets`.
+
+            .. image:: inventory_valuation_config/manual-anglo-saxon-expense.png
+               :align: center
+               :alt: Show the **Expense Account** field.
+
+   .. group-tab:: Continental
+
+      .. tabs::
+
+         .. group-tab:: Automated
+
+            Set the :guilabel:`Expense Account` to the :guilabel:`Expenses` or :guilabel:`Cost of
+            Revenue` account type.
+
+         .. group-tab:: Manual
+
+            Set the :guilabel:`Expense Account` to the :guilabel:`Expenses` or :guilabel:`Cost of
+            Revenue` account type.
+
+.. _inventory/warehouses_storage/stock-account:
+
+### Stock input/output (automated only)
+
+To configure the :guilabel:`Stock Input Account` and :guilabel:`Stock Output Account`, go to
+:menuselection:`Inventory app --> Configuration --> Product Categories` and select the desired
+product category.
+
+In the :guilabel:`Inventory Valuation` field, select :guilabel:`Automated`. Doing so makes the
+:guilabel:`Account Stock Properties` section appear. These accounts are defined as follows:
+
+- :guilabel:`Stock Valuation Account`: when automated inventory valuation is enabled on a product,
+  this account will hold the current value of the products.
+- :guilabel:`Stock Journal`: accounting journal where entries are automatically posted when a
+  product's inventory valuation changes.
+- :guilabel:`Stock Input Account`: counterpart journal items for all incoming stock moves will be
+  posted in this account, unless there is a specific valuation account set on the source location.
+  This is the default value for all products in a given category, and can also be set directly on
+  each product.
+- :guilabel:`Stock Output Account`: counterpart journal items for all outgoing stock moves will be
+  posted in this account, unless there is a specific valuation account set on the destination
+  location. This is the default value for all products in a given category, and can also be set
+  directly on each product.
+
+.. tabs::
+
+   .. group-tab:: Anglo-Saxon
+
+      In Anglo-Saxon accounting, the :guilabel:`Stock Input Account` and :guilabel:`Stock Output
+      Account` are set to *different* :guilabel:`Current Assets` accounts. This way, delivering
+      products and invoicing the customer balance the *Stock Output* account, while receiving
+      products and billing vendors balance the *Stock Input* account.
+
+      To modify the account type, go to the click the |right arrow| icon to the right of the stock
+      input/output account. In the pop-up window, choose :guilabel:`Current Assets` from the
+      :guilabel:`Type` drop-down menu.
+
+      .. figure:: inventory_valuation_config/account-type.png
+         :align: center
+         :alt: Display account setup page, highlighting the **Type** field.
+
+         The *Stock Input* account is set to `Stock Interim (Received)`, a *Current Asset* account
+         type.
+
+   .. group-tab:: Continental
+
+      In Continental accounting, the :guilabel:`Stock Input Account` and :guilabel:`Stock Output
+      Account` are set to **the same** :guilabel:`Current Assets` account. That way, one account can
+      be balanced when items are bought and sold.
+
+      .. example::
+         The stock input and output accounts are both set to `Stock Interim (Received)`, a
+         :guilabel:`Current Assets` account type. They can also be set to the `Stock Interim
+         (Delivered)`, as long as the input and output accounts are assigned to the **same**
+         account.
+
+         .. image:: inventory_valuation_config/continental-stock-account.png
+            :align: center
+            :alt: Show the Stock Input and Output accounts.
+
+# Inventory valuation reporting
+
+To start, go to :menuselection:`Accounting app --> Reporting --> Balance Sheet`. Click the
+:guilabel:`Current Assets` line item to unfold the drop-down menu, and look for the nested
+:guilabel:`Stock Valuation`, :guilabel:`Stock Interim (Received)`, and :guilabel:`Stock Interim
+(Delivered)` lines.
+
+> **tip**:
+>    At the top of the dashboard, click the :guilabel:`As of [date]` button to display accounting
+   records up to a specified date.
+
+.. seealso::
+   - :ref:`Stock accounts and what they do <inventory/warehouses_storage/stock-account>`
+   - :doc:`../../../../finance/accounting/get_started/cheat_sheet`
+
+.. image:: inventory_valuation_config/stock-balance-sheet.png
+   :align: center
+   :alt: See the full inventory valuation breakdown in Odoo Accounting app.
+
+Access more specific information by clicking the :icon:`fa-ellipsis-v` :guilabel:`(ellipsis)` icon
+to the right of the desired journal. Select :guilabel:`General Ledger` to see a list of all of the
+journal entries, where each line item's :icon:`fa-ellipsis-v` :guilabel:`(ellipsis)` icon can be
+clicked to reveal the :guilabel:`View Journal Entry` option to open the individualized journal
+entry.
+
+Additionally, annotations to the :guilabel:`Balance Sheet` can be added by choosing
+:guilabel:`Annotate`, filling in the text box, and clicking :guilabel:`Save`.
+
+.. image:: inventory_valuation_config/journals.png
+   :align: center
+   :alt: Show Stock Valuation journals in a list.

package/payload/skills/odoo18-docs/references/docs/applications/inventory_and_mrp/inventory/product_management/inventory_valuation/landed_costs.md

@@ -0,0 +1,167 @@
+---
+title: "Landed costs"
+source_url: "https://docs.odoo.sbggai.top/applications/inventory_and_mrp/inventory/product_management/inventory_valuation/landed_costs.html"
+---
+
+============
+# Landed costs
+
+.. |RfQ| replace:: :abbr:`RfQ (Request for Quotation)`
+.. |PO| replace:: :abbr:`PO (Purchase Order)`
+.. |FIFO| replace:: :abbr:`FIFO (First In First Out)`
+.. |AVCO| replace:: :abbr:`AVCO (Average Costing)`
+
+When shipping products to customers, the landed cost is the total price of a product or shipment,
+including all expenses associated with shipping the product.
+
+In Odoo, the *Landed Costs* feature is used to take additional costs into account when calculating
+the valuation of a product. This includes the cost of shipment, insurance, customs duties, taxes,
+and other fees.
+
+# Configuration
+
+To add landed costs to products, the *Landed Costs* feature must first be enabled. To enable this
+feature, navigate to :menuselection:`Inventory app --> Configuration --> Settings`, and scroll to
+the :guilabel:`Valuation` section.
+
+Tick the checkbox next to the :guilabel:`Landed Costs` option, and click :guilabel:`Save` to save
+changes.
+
+Once the page refreshes, a new :guilabel:`Default Journal` field appears below the :guilabel:`Landed
+Costs` feature in the :guilabel:`Valuation` section.
+
+Click the :guilabel:`Default Journal` drop-down menu to reveal a list of accounting journals. Select
+a journal for which all accounting entries related to landed costs should be recorded.
+
+.. image:: landed_costs/integrating-landed-costs-enabled-setting.png
+   :alt: Landed Costs feature and resulting Default Journal field in the Inventory settings.
+
+# Create landed cost product
+
+For charges that are consistently added as landed costs, a landed cost product can be created in
+Odoo. This way, a landed cost product can be quickly added to a vendor bill as an invoice line,
+instead of having to be manually entered every time a new vendor bill is created.
+
+To do this, create a new product by going to :menuselection:`Inventory app --> Products -->
+Products`, and clicking :guilabel:`New`.
+
+Assign a name to the landed cost product in the :guilabel:`Product Name` field (i.e. `International
+Shipping`). In the :guilabel:`Product Type` field, click the drop-down menu, and select
+:guilabel:`Service` as the :guilabel:`Product Type`.
+
+> **important**:
+>    Landed cost products **must** have their :guilabel:`Product Type` set to :guilabel:`Service`.
+
+Click the :guilabel:`Purchase` tab, and tick the checkbox next to :guilabel:`Is a Landed Cost` in
+the :guilabel:`Vendor Bills` section. Once ticked, a new :guilabel:`Default Split Method` field
+appears below it, prompting a selection. Clicking that drop-down menu reveals the following options:
+
+- :guilabel:`Equal`: splits the cost equally across each product included in the receipt, regardless
+  of the quantity of each.
+- :guilabel:`By Quantity`: splits the cost across each unit of all products in the receipt.
+- :guilabel:`By Current Cost`: splits the cost according to the cost of each product unit, so a
+  product with a higher cost receives a greater share of the landed cost.
+- :guilabel:`By Weight`: splits the cost, according to the weight of the products in the receipt.
+- :guilabel:`By Volume`: splits the cost, according to the volume of the products in the receipt.
+
+.. image:: landed_costs/integrating-landed-costs-landed-cost-product.png
+   :alt: Is a Landed Cost checkbox and Default Split Method on service type product form.
+
+When creating new vendor bills, this product can be added as an invoice line as a landed cost.
+
+> **important**:
+>    To apply a landed cost on a vendor bill, products in the original |PO| **must** belong to a
+   *Product Category* with a *Costing Method* of either |AVCO| or |FIFO|, and the valuation method
+   can be :doc:`manual <using_inventory_valuation>` or :doc:`automatic
+   <inventory_valuation_config>`.
+
+# Create purchase order
+
+Navigate to :menuselection:`Purchase app --> New` to create a new request for quotation (RfQ). In
+the :guilabel:`Vendor` field, add a vendor to order products from. Then, click :guilabel:`Add a
+product`, under the :guilabel:`Products` tab, to add products to the |RfQ|.
+
+Once ready, click :guilabel:`Confirm Order` to confirm the order. Then, click :guilabel:`Receive
+Products` once the products have been received, followed by :guilabel:`Validate`.
+
+## Create vendor bill
+
+Once the vendor fulfills the |PO| and sends a bill, a vendor bill can be created from the |PO| in
+Odoo.
+
+Navigate to the :menuselection:`Purchase app`, and click into the |PO| for which a vendor bill
+should be created. Then, click :guilabel:`Create Bill`. This opens a new :guilabel:`Vendor Bill` in
+the :guilabel:`Draft` stage.
+
+In the :guilabel:`Bill Date` field, click the line to open a calendar popover menu, and select the
+date on which this draft bill should be billed.
+
+Then, under the :guilabel:`Invoice Lines` tab, click :guilabel:`Add a line`, and click the drop-down
+menu in the :guilabel:`Product` column to select the previously-created landed cost product. Click
+the :icon:`fa-cloud-upload` :guilabel:`(cloud with arrow)` icon to manually save and update the
+draft bill.
+
+.. image:: landed_costs/integrating-landed-costs-checkboxes.png
+   :alt: Landed Costs column checkboxes for product and landed cost.
+
+In the :guilabel:`Landed Costs` column, the product ordered from the vendor does **not** have its
+checkbox ticked, while the landed cost product's checkbox **is** ticked. This differentiates landed
+costs from all other costs displayed on the bill.
+
+Additionally, at the top of the form, a :guilabel:`Create Landed Costs` button appears.
+
+.. image:: landed_costs/integrating-landed-costs-create-button.png
+   :alt: Create Landed Costs button on vendor bill.
+
+# Add landed cost
+
+Once a landed cost is added to the vendor bill, click :guilabel:`Create Landed Costs` at the top of
+the vendor bill.
+
+Doing so automatically creates a landed cost record, with a set landed cost pre-filled in the
+product line in the :guilabel:`Additional Costs` tab.
+
+From the :guilabel:`Landed Cost` form, click the :guilabel:`Transfers` drop-down menu, and select
+which transfer the landed cost belongs to.
+
+.. image:: landed_costs/integrating-landed-costs-transfers-menu.png
+   :alt: Landed cost form with selected receipt transfer.
+
+> **tip**:
+>    In addition to creating landed costs directly from a vendor bill, landed cost records can *also*
+   be created by navigating to :menuselection:`Inventory app --> Operations --> Landed Costs`, and
+   clicking :guilabel:`New`.
+
+After setting the picking from the :guilabel:`Transfers` drop-down menu, click :guilabel:`Compute`
+(at the bottom of the form, under the :guilabel:`Total:` cost).
+
+Click the :guilabel:`Valuation Adjustments` tab to see the impact of the landed costs. The
+:guilabel:`Original Value` column lists the original price of the |PO|, the :guilabel:`Additional
+Landed Cost` column displays the landed cost, and the :guilabel:`New Value` displays the sum of the
+two, for the total cost of the |PO|.
+
+Once ready, click :guilabel:`Validate` to post the landed cost entry to the accounting journal.
+
+This causes a :guilabel:`Valuation` smart button to appear at the top of the form. Click the
+:guilabel:`Valuation` smart button to open a :guilabel:`Stock Valuation` page, with the product's
+updated valuation listed.
+
+> **note**:
+>    For a :guilabel:`Valuation` smart button to appear upon validation, the product's
+   :guilabel:`Product Type` **must** be set to :guilabel:`Storable`.
+
+To view the valuation of *every* product, including landed costs, navigate to
+:menuselection:`Inventory app --> Reporting --> Valuation`.
+
+> **note**:
+>    Each journal entry created for a landed cost on a vendor bill can be viewed in the *Accounting*
+   app.
+
+   To locate these journal entries, navigate to :menuselection:`Accounting app --> Accounting -->
+   Journal Entries`, and locate the correct entry, by number (i.e. `PBNK1/2024/XXXXX`).
+
+   Click into the journal entry to view the :guilabel:`Journal Items`, and other information about
+   the entry.
+
+   .. image:: landed_costs/integrating-landed-costs-journal-entry.png
+      :alt: Journal Entry form for landed cost created from vendor bill.