Purchases and Landing Cost for Building Material Traders
Purchases records company and depot buying with freight and unloading added to the cost. Selling rates for cement, steel and aggregate are then set against what the material actually cost to land.
Cost beyond the supplier’s invoice
The price on a supplier’s invoice is only part of what a load costs the yard. Freight and unloading are added before the material reaches the godown. Recording them with the purchase gives a landed cost for each item. A selling rate can then be compared with it. That is the whole idea.
What a purchase records
Reading cost against selling rate
Cement and steel rates move with the company price list and the steel market. When a new rate is entered, the landed cost of the latest purchase is there to compare with it. The decision stays with the owner.
- Purchases by supplier, with freight and unloading
- Rate history for cement, steel and aggregate
- Yard stock by brand, grade and diameter
- Sales and purchase summary for GST filing
What it does not do
The software does not fix selling rates from cost. Which charges are added to a purchase, and how freight is shared across the items on one lorry, is agreed with the yard during implementation. GST treatment is for the client’s accountant.
Frequently asked questions
Does it set the selling rate from cost?
No. The landed cost is shown alongside the rate list, and someone in the office enters the selling rate.
Are freight and unloading entered per purchase?
Yes. They are recorded with the purchase, and how they are spread across items is agreed during set-up.
Do purchases update stock?
Yes. Material received adds to yard stock by brand, grade and diameter. Stock rises on entry.
Can purchase entries go to Tally?
They can. The accountant imports the file under the ledger names already in use, and the exact export is confirmed during scoping.
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