Landed cost and currencies: Business Central for import export businesses

Landed cost in Business Central for import export trade

The supplier's price is only part of what imported goods cost. Freight, insurance, duty, brokerage, port charges and inland haulage arrive on separate invoices. They often arrive after the goods. So item charges assign each invoice to the receipts it relates to.

You can spread the charge by quantity, value, weight or volume. Then it flows into inventory value and cost of goods sold. You can also accrue expected charges at receipt. So margin reports stay realistic before the final freight invoice appears. We build a cost template for each trade lane.

Buying and selling in several currencies

An importer may buy in yuan or euros and sell in dollars. An exporter does the reverse. Vendors, customers and bank accounts each carry a currency. Rates update from a rate service. Realized gains and losses post on their own when an invoice is settled.

At period end, the exchange rate adjustment revalues open payables, receivables and bank balances. Reports then show exposure by currency and due date. That helps you decide on forward cover. You record hedging contracts by journal. Treasury tools sit outside the standard product.

Goods in transit and container visibility with Business Central for import export

Under many shipping terms, ownership passes when goods are loaded. That happens long before they reach the warehouse. We record it with an in-transit location. The purchase is received there when title passes. Then a transfer order moves it on arrival. So finance sees stock and the liability at the right time.

Sales staff can promise stock that is still at sea, because available-to-promise looks at inbound transfers and dates. However, standard Business Central has no container entity. So grouping several purchase orders into one container, with vessel and arrival details, takes a small extension or add-on.

Trade documents in Business Central for import export

Export shipments in Business Central for import export need a commercial invoice, a packing list and often a certificate of origin. Items carry tariff numbers, country of origin and net weight. So those documents print from the sales shipment with the right data. We adjust layouts to what your freight forwarder expects.

Fields and reminders on the order track letters of credit and documentary collections. A missed document deadline can delay payment. Denied-party screening and export license checks happen in specialist services. Business Central can call them during order entry.

Drop shipments, back-to-back orders and margins in Business Central for import export

Traders using Business Central for import export often sell goods they never touch. A sales order can create its purchase order directly. The goods then go from supplier to customer as a drop shipment. Or a special order can pass through your warehouse. Either way, the link keeps quantities and dates consistent.

You see margin per deal after you assign landed charges. It is the selling price less supplier cost, freight, duty and agent commission. Dimensions for trade lane, product group and sales agent then show where the business earns its living. They also show where it only moves boxes.

Business Central for import export: common questions

Does Business Central file customs entries?

No. Your broker files customs declarations, or you use dedicated trade software. Business Central supplies accurate data for them, such as tariff numbers, values and origin. It also records the duty and fees that come back as costs on the shipment. So the broker works from clean data, and your finance team sees each shipment's true cost without retyping anything from the broker's paperwork.

Can landed cost be estimated before the invoices arrive?

Yes. You can accrue an expected charge when goods are received. It uses a rate per unit, weight or value for that lane. Later, the actual invoices post. The accrual is then reversed and the true amount is assigned. The difference flows to inventory or cost of goods sold. So early margin reports stay close to the final result, and surprises are rare.

How do we handle suppliers who require deposits?

Purchase prepayments record a deposit against the order, by share or by fixed amount. You pay the prepayment invoice in the supplier's currency. Then the final invoice deducts it. Reports list deposits outstanding by supplier. So none is overlooked at settlement. That matters most with overseas factories, where a deposit may sit for months before the goods ship.

Can we run a trading entity abroad as well?

Yes. Each legal entity is a company with its own base currency and local tax setup. Microsoft and its partners provide localizations for many markets. Intercompany orders move goods between your entities. Then consolidation translates results into the group currency. So the head office sees one picture, while each local entity keeps books that suit its own rules.

Is a warehouse management add-on required?

Often not. Business Central includes bins, picks, put-aways and directed warehouse flows for those who need them. Some importers use a third-party warehouse instead. In that case, receipts and shipments pass by data link between the provider and Business Central. We set that up as an integration. So stock figures stay right, whichever warehouse model you choose.

Related pages for trading companies

Landed cost, currencies and drop shipments each have a full service page with setup detail. Traders who also hold stock and deliver locally should read the distribution page alongside this one. Start with the topic that causes the most pain in your month-end. Then ask us how Business Central for import export can fit your trade lanes. For the product detail, see Microsoft Learn: set up currencies in Business Central.