Landed Cost Types allow you to create a list of the different kinds of Landed Costs you have to deal with when purchasing goods from overseas suppliers. A Landed Cost could be the cost of the insurance for a shipment, or an agents fee, or government duty on imports and so on. From an accounting point of view Landed Costs allows you to take the cost of these items and apportion them onto the costs of the actual goods you are buying.
For example; you order a part from Japan that costs £100. You then pay not only the £100 to the Japanese supplier but also £5 in duty to the government and a 1% handling charge to the port authority. The part has not cost you £100, but actually has cost you £106 (£100 + £5 + £1).
By setting up the Types of Landed Costs here you can break down these charges, select the method for calculation (either a flat value or a percentage value) and also select the nominal codes to be affected.