Processing Cost Allocation & Landed Export Valuation
Tracking factory milling expenses, labor, transport, packaging, and landed cost-per-kilogram accounting for green coffee export consignments.
Landed Cost Components#
Calculating exact profitability on green coffee exports requires absorbing multiple operational cost layers into the finished export inventory valuation before generating customs export declarations.
SmartERP Coffee captures operational expenses directly on the manufacturing order via mrp.processing.cost:
pie title Coffee Landed Export Cost Structure
"Raw Parchment Purchase" : 70
"Primary Transport & Logistics" : 10
"Milling & Hulling Electricity" : 8
"Conveyor Manual Hand-Picking Labor" : 6
"Export Jute Bags & GrainPro Liners" : 4
"ECTA Cupping & Inspection Fees" : 2Cost Tracking Model Fields (mrp.processing.cost)#
| Expense Head | Cost Type | Basis of Allocation | Financial Impact |
|---|---|---|---|
| Milling Factory Fee | Direct Variable | Per Quintal / 100 kg milled | Absorbed into Finished Green Stock |
| Sorting Labor | Direct Labor | Hand-picking shift time sheets | Cost of Goods Sold (COGS) component |
| Packaging Consumables | Material Direct | Jute bags + GrainPro moisture barriers | Added to finished stock valuation |
| Domestic Corridor Freight | Logistics Freight | Flat rate or per MT from washing station | Landed inventory adjustment |
Accounting Integration & Valuation#
When processing orders close, SmartERP records standard stock valuation journal entries:
$$\text{Total Cost of Export Stock} = \text{Raw Parchment Value} + \sum \text{Processing Costs} - \text{Byproduct Recovery Value}$$
$$\text{Unit Cost per kg} = \frac{\text{Total Cost of Export Stock}}{\text{Net Export Green Weight (kg)}}$$
flowchart LR
A["Raw Coffee Stock<br/>(WIP Account Dr)"] --> D["Finished Green Bean Inventory<br/>(Export Inventory Dr)"]
B["Processing Expenses<br/>(Factory Clearing Dr)"] --> D
C["Byproduct Triage Valuation<br/>(Local Sales Cr)"] --> DWarning
Byproducts sold locally (such as coffee husks for fertilizer or local buni/triage coffee) generate domestic VAT at 15%. In contrast, the green coffee export consignment itself is zero-rated (0% VAT) under Ethiopian tax legislation.