Assigning Landed Costs to Multiple Orders

If a supplier has issued you one invoice for landed costs that need to be attributed to multiple stock purchase orders, you will need to split that invoice so each order is attributed its relevant landed costs correctly.   The easiest way to do this is raise a landed cost purchase order matching the line items, quantities and amounts invoiced by the supplier, then use the backorder function to attribute the landed costs correctly to each individual stock order. This reduces double entry and also keeps the same PO reference and supplier invoice number so it will be easy to identify the same order during bank reconciliation to 'merge' them back together again.

Raise and approve a landed cost purchase order with the first stock order to attribute landed costs selected in the PO to Attribute Costs dropdown.

Receive the landed cost purchase order with the relevant quantities of costs need to be attributed to the first stock order. Ensure that you accept the prompt to backorder the remaining items. The total of this order is the value of the landed costs that will be attributed to the selected stock order.

Identify and open the backordered landed cost order on the purchase order dashboard.  It will be same reference as the original with the backorder suffix.

From the backorder details page, click Revert to Draft and then Edit Purchase Order.

Edit the backorder to select the next stock order to attribute landed costs in the PO to Attribute Costs dropdown. Save and Approve the backorder to apply the changes.

Receive the landed cost purchase order with the relevant quantities of costs need to be attributed to the next stock order selected in the PO To Attribute Cost. Enter the same Supplier Invoice Number to probably track this order is part of the single supplier invoice. Backorder the remaining items if required. The total of this order is the value of the landed costs that will be attributed to the selected stock order.

Repeat the backorder, revert, edit and assign the next stock order to attribute PO costs as many times as required to split the landed costs over the required stock orders.

This workflow, though assigning the landed costs over multiple stock orders correctly, WILL send multiple POs/bills to your accounting integration.  However, it will be easy to identify these as they all will have the same reference and supplier invoice number to use functionality such as Xero's find and match function to reconcile one payment.