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Question

Landed cost


We want to know how landed cost is computed. Does it show up under the item cost statistics as "average cost?"

Does average cost equal landed cost?

If not, where can I see landed cost?

3 replies

Laura02
Captain II
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  • Captain II
  • 3135 replies
  • March 29, 2024

Hello,

Landed Cost transactions are costs related to inventory procurement such as Freight,Duty, Taxes, Insurance, not including the cost of the merchandise itself, that we enter in Landed Cost screen of Purchasing module. Landed Cost transactions update Inventory costs with Inventory Adjustment Transactions.

  1. Enter Landed Cost.
  1. Connect Landed Cost Transactions to one or more PO Receipts
Link Freight Costs to inventory items that were in the shipment
  1. The Inventory Adjustment transaction looks like this:
Cost is added to the items from the shipments without increasing qty on hand
  1. Adjustment transaction can be seen on the Inventory Valuation report - freight is now included in the item costs:

If the items are sold before the Invoice for freight/insurance/taxes/duty is received and entered, then the landed cost will update a Cost of Goods Sold account, instead of the inventory asset account.

 

Landed cost can be computed different ways:  Weighted cost of the items in the shipment, weight of the items in the shipment, quantity of the items in the shipment, depending on how the LC Code is set up.

 

 

Laura


Manikanta Dhulipudi
Captain II
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Hi @BenFoy Please find the functionality of landed cost.


parveza33
Jr Varsity III
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  • Jr Varsity III
  • 15 replies
  • March 29, 2024

HI @BenFoy ,

We want to know how landed cost is computed. Does it show up under the item cost statistics as "average cost?"

Answer : Yes.

Verify what you have defined the Allocation Method in Landed Cost Codes.

 


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