Landed Cost Allocation Account

Hi Experts,

I have some doubt regarding landed cost please do the needful

1. When we create GRPO, Accounting entry ll be

Inventory Account  DR (Assets Account)

       GRN Intermediary Account                        CR ( Liability Account)

       2. When we create Landed cost against GRPO

        Inventory Account    DR ( Assets Account )

        Landed Cost Allocation Account CR ( ? )

If landed Cost account will be Expenses, then Expense Account will be Credit but how can we book expenses as a credit ? At the time of Broker AP invoice, Broker (vendor) will be credit and this landed Cost account will be Debit.

If this account comes from Expenses, so my question is how can we clear expense account because if we are clearing that, expense account will have value with credit balance and we always Debit our expense account. how can we credit our expanse account..?

and as per accounting principle we cannot debit expenses account.

or

If we create landed cost allocation account in liability  like GRN Intermediary account.

Inventory Account will be debit and Landed Cost account will be credit.

And at the time of Broker AP Invoice Landed Cost Account will be debit and Agent Vendor will be credit.

Now my Landed cost allocation account will get cleared.

So I need to know, which is the proper method for this

Please Do the needful to clear my doubt.

Thanks

Fahis T