Landed costs include all charges associated to a good transfer.
Landed cost includes = Cost of product + Shipping + Customs + Risk
All of these components might not be applicable in every shipment, but relevant components must be considered as a part of the landed cost. We have to identify landed cost to decide sale price of product because it will impact on company profits.
- Go to Inventory ‣ Configuration ‣ Setting. Check accounting option Include landed costs in product costing computation & Perpetual inventory valuation, then click on Apply to save changes.
- Landed Cost Types: Start by creating specific products to indicate your various Landed Costs, such as freight, insurance or customs duties. Go to Inventory ‣ Configuration ‣ Landed Cost types.
- Then go to the Purchase ‣ Configuration ‣ Setting. Choose costing method Use a ‘Fixed’, ‘Real’ or ‘Average’ price costing method, then click on Apply to save changes.
Note: Landed costs are only possible for product configured in real time valuation with real price costing method. The costing method is configured on the product category
- Link landed costs to a transfer
To calculate landed costs, go to Inventory ‣ Inventory Control ‣ Landed Costs.
Click the Compute button to see how the landed cost will be split across the picking lines. To confirm the landed cost attribution, click on the Validate button