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1. Payment Stage
1. Payment Stage
- Make two payments to the supplier in China:
• Deposit (initial payment)
• Balance (final payment)
- After each payment, go to Xero → Bank Reconciliation, and reconcile the transaction using the Import Clearing Account.
2. Freight Invoice Handling
2. Freight Invoice Handling
- Once the freight forwarder’s invoice is received (for shipping, customs, etc.):
• Enter the invoice into Xero as a Bill.
• Assign it to the Freight Forwarder supplier.
• Use the appropriate expense account (e.g., Freight & Customs or Shipping Costs).
• Set the payment account as the Import Clearing Account.
https://go.xero.com/AccountsPayable/View.aspx?InvoiceID=58d905f6-3eda-4870-885b-94a9e393a8c9
3. Goods Received & Verification
3. Goods Received & Verification
- When the goods arrive:
• Cross-check the received items with the Packing List.
• Confirm that all quantities and types match what was ordered.
• Pay special attention to roll length and total number of rolls.
P = 12x12
A = 9x9
O = 6x6
6 = 1.68
8 = 1.88
So P6 = 12x12, 1.68
4. Cost Allocation & Spreadsheet Calculation
4. Cost Allocation & Spreadsheet Calculation
- Open Mesh Containers drive, copy the last one, and change to the current commercial invoice
- Input the following in Working out Sheet:
• Payment 1, Payment 2, and Shipping Payment (all in AUD).
• Supplier Invoice total amount (in USD).
• For each item, enter:
- Roll Length
- Number of Rolls
- Total Rate USD (copied from the commercial invoice)
- For part rolls:
• Set Roll Length to 1
• Set Rolls to the total meter count (e.g., 15 meters = 15 rolls)
- Check that the grand total in the spreadsheet matches the commercial invoice total (in USD).
https://drive.google.com/drive/folders/1aq6NNsYqLRy9PkbgNcXIiTRCY-9a1cvK
5. Xero Entry & Cost Capitalization
5. Xero Entry & Cost Capitalization
- The spreadsheet will automatically generate a Xero-ready table for inventory entry.
- In Xero:
• Create a Dummy Invoice (not for payment, only to capitalize inventory cost).
• Enter each line item as shown in the spreadsheet.
• Approve the invoice.
• Mark it as Paid from the Import Clearing Account.
Notes
Notes
- The Import Clearing Account is used to temporarily hold payments until inventory is fully received and accounted for.
- All costs, including shipping and freight, are allocated proportionally into inventory value.
- You can track inventory value via Xero → Reports → Inventory or COGS.
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