The financial file of an import or export company should connect commercial documents, bank movements, shipping, clearance and inventory. When these files operate separately, landed cost, margin and foreign-currency differences become difficult to explain.
Landed cost starts with the shipment file
We review the elements connected to a shipment or batch so management can reach a cost that can be traced and explained.
- Purchase value and supplier terms.
- Freight, insurance and transport-related costs.
- Customs, clearance and relevant local charges.
- Allocation of appropriate costs to items or quantities when needed.
Currency and timing create real differences
Contracting, payment, receipt and accounting recognition may occur on different dates. We therefore review currencies, settlements and the effect of exchange differences on balances and results.
- Supplier and customer balances in different currencies.
- Advances and settlement when goods are received.
- Bank transfers, charges and reconciliations.
- Foreign-exchange differences that need separate explanation.
Inventory connects purchasing to sales
If inventory movements do not align with shipment files, cost and sales, margin analysis becomes unreliable.
- Receipt of shipments and quantities.
- Unit cost after appropriate cost allocation.
- Issues, sales and returns.
- Regular reconciliation between physical and recorded balances.
What management should be able to see
The reporting objective is visibility over shipment or product cost, margin, supplier balances, currency impact and the cash required for the next operating cycle.
Book a session to discuss the operating cycle and professional need →