Module 1.3 Costing Types and Costing Methods - OC 96368 NQF5 June 2022

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Clearing &
Forwarding Agent

Occupational Certificate | 96368 | NQF 5

Module 1.2

Practical Component

PROCUREMENT ESSENTIALS

Module 1.2 – Procurement Essentials

LESSON PLAN – PRACTICAL COMPONENT:

(DURATION: 1 DAY)

Lessons Related Topics

1. The Prohibited and  It is not only about Customs (a peek at the SARS website)
Restricted Goods Index https://www.sars.gov.za/customs-and-excise/prohibited-
restricted-and-counterfeit-goods/

2. Estimated Costing Sheet  Design an Estimated Costing Sheet by Transport Leg and

ICC Incoterm®

3. The International  Drafting a Purchase Order (Indent), what are the critical
Purchase Order (Indent) elements to observe?

4. The Supplier’s  Drafting a Supplier’s Commercial Invoice, what are the
Commercial Invoice critical elements to observe?

54

VIDEO Before we start
TIME ! our Practical
Lesson:

Let’s recap on
the difference

between
Prohibited &
Restricted Goods

https://www.youtube.com/watch?v=Yv_Ne6PHZ0Y
55

Lesson 1

The Prohibited
and Restricted
Goods Index

56

Lesson 1:
The Prohibited and Restricted Goods Index

IT IS NOT ONLY ABOUT CUSTOMS → A peek at the SARS website

https://www.sars.gov.za/customs-and-excise/prohibited-
restricted-and-counterfeit-goods/

57

VIDEO Before we start our
TIME ! Practical Lesson:

Let’s recap on
the difference

between
Procurement
and Purchasing

https://www.youtube.com/watch?v=hlkfLApTj-w

58

Lesson 2

Estimated
Costing Sheet

59

Lesson 2 – Freight Forwarder's Cost Estimate (Generic - All M odes) A. Type of Estimate
B. Reference No.
Challenge: 1. Client Details C. Dated

Estimated Costing Sheet 2. Forwarding Information

INSTRUCTIONS! 3. Cost Elements (Description of Charges)
Transport Leg No. 1 - Forwarding (Origin)
• You have been provided with a Generic
Cost Estimate (All Transport Modes), -
similar to what Freight Forwarders will
generate for their clients Transport Leg No. 2 - Carriage (Int. Freight) -
Transport Leg No. 3 - Landing Costs (Dest.) -
• Note A, B, C at the top right-hand side -
telling us what type of transport mode it 4. Costs Brought Forward
refers to (Type of Estimate), the estimate 5. Value of Goods -
reference no. and date generated. -
-
• The re are 7 Componets to the estimate -
(info inserted), but each require -
additional information, therefore -
complete the template provided with -
the relevant information for each part -

- -
-
ZAR Values
Total Estimated Forwarding Cost =
-

-

-
-

-- - 60
5.6. Total Estimated Landed Cost (DDP Value) = -

Lesson 2 – Part 1:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC
INCOTERM®

1. Client Details 1.1. Business Name

1.2. Street Address

1.3. Contact Person

1.4. Contact Details

61

Lesson 2 – Part 2:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC INCOTERM®

2. Forwarding 2.1. Purchasing / Shipping Term 2.11. Weight Indicator
Information 2.2. Supplier 2.12. Volume
2.3. Commodity 2.13. Volume Indicator
2.4. Value of Goods 2.14. C/Weight
2.5. Currency 2.15. Country of Origin
2.6. No. of Units 2.16. POL
2.7. Mode of Transport 2.17. Country of Destination
2.8. Cargo Movement 2.18. POD
2.9. No. of Packages 2.19. Final Destination
2.10. Actual Weight 2.20. Contract In Place (Y/N)
2.21. Contract Details

62

Lesson 2 – Part 3:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC INCOTERM®

3. Cost Elements (Description 3.1. No. of Units
of Charges)

Transport Leg No. 1 - 3.2. Unit Cost
Forwarding (Origin) 3.3. Total Cost

3.4. ROE

3.5. ZAR Value

3.6. Total Cost - Origin (FOB / FCA Cost) =

63

Lesson 2 – Part 4:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC INCOTERM®

3. Cost Elements (Description 3.7. No. of Units
of Charges)

Transport Leg No. 2 - 3.8. Unit Cost
Carriage (Int. Freight) 3.9. Total Cost

3.10. ROE

3.11. ZAR Value

3.12. Sub Total (CFR / CPT Cost) =

Marine Insurance

3.13. Total Cost - Carriage (Int. Freight incl. CIF / CIP Cost) = 64

Lesson 2 – Part 5:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC INCOTERM®

3. Cost Elements (Description 3.14. No. of Units
of Charges)

Transport Leg No. 3 - 3.15. Unit Cost
Landing Costs (Dest.) 3.16. ZAR Value

3.17. Total Cost - Destination (DDP Cost) =

65

Lesson 2 – Part 6:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC INCOTERM®

4. Costs Brought Forward 4.1. Transport Leg No. 1 - Forwarding (Origin)

4.2. Transport Leg No. 2 - Carriage (International Freight up
to CFR / CPT, Marine Insurance Excluded)
4.3. Transport Leg No. 2 - Carriage (International Freight up
to CIF / CIP, Marine Insurance Included)
4.4. Transport Leg No. 3 - Landing Costs (Destination),
Customs VAT Excluded

4.5. ZAR Values

66

Lesson 2 – Part 7:
Estimated Costing Sheet

DESIGN AN ESTIMATED COSTING SHEET BY TRANSPORT LEG AND ICC INCOTERM®

5. Value of Goods 5.1. No. of Items

5.2. F/Value

5.3. Currency

5.4. ROE

5.5. ZAR Value

5.6. Total Estimated Landed Cost (DDP Value) =

5.7. Unit Value = 67

VIDEO Before we start our
TIME ! Practical Lesson:

Let’s recap on
what a

Purchase Order
is and why it is
so important

https://www.youtube.com/watch?v=2mDpe8RpcPA

68

Lesson 3

The
International
Purchase Order

(Indent)

69

International Purchase Order / Indent

Lesson 3 – Blaufoo S.A. Order No.
Challenge:
130 Short Street, Uitenhage - South Africa Tel: +27 (041) 1081067 Dated
The International
Purchase Order Seller's Information: Freight Forwarder (if applicable):
(Indent)
Seller's Reference: Freight Forwarder's Reference (if applicable):
INSTRUCTIONS! # Commodity
Quantity Unit Value Total Value
• Complete the template provided with
the relevant information for each part Shipping / Transport Requirements Account No Branch Code
Mode of Transport:
• Importer, Blaufoo S.A. details already No. of Packages:
inserted on Blaubok order Incoterm:
POL:
• You have ½ an hour to complete the POD:
task! Final Destination:
Carrier:
• Afterwards, compare your work with Terms of Sale
the completed document Terms:

Bank LC (if applicable)
Institution

Documentary Instructions Originals Copies
Suppliers Invoice

Packing List(s) Negotiable Other Master Copies
Bills YN

Type Originals Copies

Certificates

Forwarding of Documentation:

Special Instructions Order Confirmed By: 70
Pre-alerts:
Other:

Order Placed By:

Lesson 3 – Part 1:
The International Purchase Order (Indent)

DRAFTING A PURCHASE ORDER (INDENT), WHAT ARE THE CRITICAL
ELEMENTS TO OBSERVE?

Order Placed By Student’s Name
Order No.
Order Date BLSA100023/16
Seller / Exporter
24/09/2016
Freight Forwarder
Haasdas Electronics
130 Long Street, Hamburg, Germany 71
Tel: 949 +(190) 9876543
Seller’s Ref. Proforma 1001078-09-16 DD. 2016-09-22

Black Magic Logistics Gmbh
241 No. 1 Strasse, Logistics Park, Hamburg, Germany
Tel: 949 +(190) 3456789
Freight FWD’s Ref. Proforma 1001022-09-16 DD. 2016-09-23

Lesson 3 – Part 2:
The International Purchase Order (Indent)

Commodity Blaufoo Television Sets
Quantity 576.00
Unit Value & Currency Euro 120.00
Total Value & Currency Euro 69120.00
Terms of Sale Payment against Bill of Lading
Bank LC Not Applicable
Bank Frist National Deutschland Banke
Account No. & Branch Code 121-12345789 BC 121

72

Lesson 3 – Part 3:
The International Purchase Order (Indent)

Mode of Transport Ocean
No. of Packages 3 x 6m GP FCL Containers STC 72 pallets
Incoterm EXW, Hamburg
POL Hamburg
POD Port Elizabeth (Container Yard = CY)
Final Destination Uitenhage
Carrier SAF DAF S.A. Carriers

73

Lesson 3 – Part 4:
The International Purchase Order (Indent)

Supplier’s Invoice 3 x Original Commercial Invoices + 3 x Copy Invoices

Packing List 3 x Originals + 3 x Copy Invoices
Bill of Lading
Certificates Negotiable Bill → YES
Documents to be Forwarded 3 x Masters + 3 x Copies
Special Instructions 1 x Original COO EUR1 + 1 x Copy
Order Confirmed By 1 x Original EU Standard for Electrical Goods + 1 Copy

1-Set to Agent + 1-Set to Importer + 1-Set with Shipment

Pre-alerts on date of shipment
Other: ANF 7-days prior to arrival

Insert as “Rialgo Barnard”

74

VIDEO Before we start our
TIME ! Practical Lesson:

Let’s recap on
what a Supplier

Commercial
Invoice is and why

it is so important

https://www.youtube.com/watch?v=cWPZaTlE8uc

75

Lesson 4

The Supplier’s
Commercial

Invoice

76

Lesson 4 – Shipper's Tax Invoice Invoice No.
Challenge Dated
Haasdas Electronics
The Supplier’s
Commercial Invoice 141 Point Strasse, Hamburg, Germany Tel: 949 +(190) 9876543

INSTRUCTIONS! To:

• Complete the template provided Shipment Details: Units Unit Value Total
with the relevant information for Mode of Transport:
each part No. of Packages:
Shipping Term:
• Seller, Haasdas Electronics details Final Destination:
already inserted on invoice
Invoice Details:
• You have ½ an hour to complete # Description of Goods:
the task!
Shipping Costs: Sub Total
• Afterwards, compare your work
with the completed document Nett Weight (KG): Sub Total
Gross Weight (KG): Currency
Banking Details: Final Invoice Value
Payment Terms:
Institution: 77
Account No:
Branch Code:

Lesson 4:
The Supplier’s Commercial Invoice

DRAFTING A SUPPLIER’S COMMERCIAL INVOICE, WHAT ARE THE CRITICAL
ELEMENTS TO OBSERVE?

• By using the same information as provided for the Purchase Order (indent),
complete the Supplier’s Invoice.

Additional Information:

 Invoice No. & Date = 1001078-09-16 DATED 2016-09-22
 Nett Weight in KG = 8640.00
 Gross Weight in KG = 9000.00
 The Final Destination = POD CY Port Elizabeth, South Africa

78

Practical
Application

Answers

79

Freight Forwarder's Cost Estimate (Generic - All M odes) A. Type of Estimate
B. Reference No.
C. Dated

1. Client Details

Lesson 2 - Answer: 1.1. Business Name 2.2. Supplier 2. Forwarding Information 2.4. Value of Goods 2.5. Currency 2.6. No. of Units
1.2. Street Address
Estimated Costing Sheet 1.3. Contact Person 2.3. Commodity
1.4. Contact Details
WHAT HAVE YOU OBSERVED?
2.1. Purchasing /
Shipping Term

2.7. Mode of Transport 2.8. Cargo 2.9. No. of 2.10. Actual Weight 2.11. Weight Indicator 2.12. Volume 2.13. Volume 2.14. C/Weight
Movement Packages Indicator

2.15. Country of Origin 2.16. POL 2.17. Country of 2.18. POD 2.19. Final Destination 2.20. Contract In 2.21. Contract Details
Destination Place (Y/N)

3. Cost Elements (Description of Charges)

Transport Leg No. 1 - Forwarding (Origin) 3.1. No. of Units 3.2. Unit Cost 3.3. Total Cost 3.4. ROE 3.5. ZAR Value

By creating your estimated costing 3.6. Total Cost - Origin (FOB / FCA Cost) = -
sheet, you have in fact just covered
all the required information critical for Transport Leg No. 2 - Carriage (Int. Freight) 3.7. No. of Units 3.8. Unit Cost 3.9. Total Cost 3.10. ROE 3.11. ZAR Value
a Freight Forwarder and Customs
Clearing Agent to perform a shipment 3.12. Sub Total (CFR / CPT Cost) = -
from origin to final destination! -
Marine Insurance 3.13. Total Cost - Carriage (Int. Freight incl. CIF / CIP Cost) = -
Transport Leg No. 3 - Landing Costs (Dest.)
3.14. No. of Units 3.15. Unit Cost 3.16. ZAR Value

-
-
-
-
-
-
-
-

3.17. Total Cost - Destination (DDP Cost) = -

4. Costs Brought Forward 4.5. ZAR Values

4.1. Transport Leg No. 1 - Forwarding (Origin) -

4.2. Transport Leg No. 2 - Carriage (International Freight up to CFR / CPT, Marine Insurance Excluded) - -

4.3. Transport Leg No. 2 - Carriage (International Freight up to CIF / CIP, Marine Insurance Included) - -
-
4.4. Transport Leg No. 3 - Landing Costs (Destination), Customs VAT Excluded
Total Estimated Forwarding Cost = 5.5. ZAR Value

5. Value of Goods 5.1. No. of Items 5.2. F/Value 5.3. Currency 5.4. ROE -
-
-- 80

5.6. Total Estimated Landed Cost (DDP Value) =

5.7. Unit Value =

International Purchase Order / Indent

Lesson 3 – Answer: Blaufoo S.A. Order No. BLSA100023/16

The International Purchase 130 Short Street, Uitenhage - South Africa Tel: +27 (041) 1081067 Dated 24/09/2016
Order (Indent)
Seller's Information: Freight Forwarder (if applicable):
WHAT HAVE YOU OBSERVED? Haasdas Electronics Black Magic Logistics Gmbh
130 Long Street, Hamburg, Germany 241 No. 1 Strasse, Logistics Park, Hamburg, Germany
• How many information areas are Tel: 949 +(190) 9876543 Tel: 949 +(190) 3456789
there? Seller's Reference: Freight Forwarder's Reference (if applicable):
Proforma 1001078-09-16 DD. 2016-09-22 Proforma 1001022-09-16 DD. 2016-09-23
• What information is critical for a
complete and legal Purchase Order # Commodity Quantity Unit Value Total Value
(Indent)? 1 Blaufoo Television Sets 576.00 120.00 € 69,120.00

• Is a Purchase Order (Indent) a Shipping / Transport Requirements
confirmation document only, or is it an
instructional document also? Mode of Transport: Ocean

No. of Packages: 3 x 6m GP FCL Containers STC 72 pallets

Incoterm: EXW, Hamburg

POL: Hamburg

POD: Port Elizabeth

Final Destination: Uitenhage

Carrier: SAF DAF S.A. Carriers

Terms of Sale

Terms: Payment against Bill of Lading

Bank LC (if applicable) N/A

Institution Account No Branch Code
121
Frist National Deutschland Banke 121-12345789
Copies
Documentary Instructions 3
3
Suppliers Invoice Originals
Copies
Commercial Invoice Required 3
3
Packing List(s) 3
Copies
Negotiable Other Master 1
1
Bills Y N 3
X

Type Originals

Certificates COO EUR1 1

EU Standards for Electric Goods 1

Forwarding of Documentation:

1 1st set to be sent to agent

2 2nd set to be sent to importer

3 3rd set to be sent with shipment

Special Instructions

Pre-alerts: On date of shipment

Other: ANF 7-days prior to arrival

Order Placed By: Order Confirmed By: 81
Learner's Name Facilitator's Name

Lesson 4 - Answer Shipper's Tax Invoice Invoice No. 1001078-09-16
The Supplier’s Dated 2016-09-22
Commercial Haasdas Electronics
Invoice
141 Point Strasse, Hamburg, Germany Tel: 949 +(190) 9876543
WHAT HAVE YOU OBSERVED?
To:
• How many information areas are Blaufoo S.A.
there? 130 Short Street
Uitenhage - South Africa
• What information is critical for a
complete and legal Supplier’s Shipment Details:
Commercial Invoice (Shipper’s Mode of Transport: Ocean
Tax Invoice)? No. of Packages: 3 x 6m GP FCL Containers STC 72 pallets
Shipping Term: EXW, Hamburg
• Is a Commercial Invoice a Final Destination: POD CY Port Elizabeth, South Africa
confirmation document only, or
is it an instructional document Invoice Details: Units Unit Value Total
also? # Description of Goods: 69,120.00
1 Blaufoo Television Sets 576.00 120.00

Sub Total 69,120.00

Shipping Costs: -
N/A -
-
Nett Weight (KG): 8640.00 Sub Total
Gross Weight (KG): 9000.00 Euro
Currency 69,120.00
Final Invoice Value

Banking Details: Payment against Bill of Lading 82
Payment Terms: Frist National Deutschland Banke
Institution: 121-12345789
Account No: 121
Branch Code:

Your Turn!
Any

Questions?

83

Instructional & Presentation Design by End of this
Rialgo Barnard Lesson,
thank you!

Trust you have enjoyed your journey
with us.

Please feel free to contact us should
you have any queries.

Best Regards, the GMLS Team