Purchase Receipts are one of the main transactions in the Stock Module. A Purchase Receipt is also known as Goods Received Note or GRN. A Purchase Receipt records the receipt of goods. It records the Item and Quantity Received, Rate or Valuation at which the item is received and also the Warehouse at which the item is received.

Now, when we talk about the valuation of goods, the valuation is not just the Purchase value of goods, it can also include the freight cost, taxes or duties paid to procure the goods from international markets. Therefore a mechanism is required to add these additional costs to the valuation of goods, this is done by the help of Landed Cost Vouchers.

The term Landed Cost was coined in the 15th Century when the goods were transported via Sea and Land at the Port. Therefore, the cost at which the Goods were received on Land including additional expenses like Shipping Costs, Duties, etc came to be known as Landed Cost.

Landed Cost Vouchers let you add the additional expenses to the valuation of an Item and therefore give you an accurate costing which would otherwise be reported as Indirect Expenses. As the cost is reported in a more accurate manner, the profitability is shown accurately as well.