Landed costs can include a significant portion of total product cost per item. The Landed Cost Allocation per Line preference enables the best understanding for tighter tracking of location-specific costs of your purchases from suppliers and vendors globally.
When pricing items you sell, you should assess all costs related to acquiring the product and include them in your selling price. This can include costs necessary to bring your product from suppliers in many locations to your warehouse door. Landed costs for duties, tariffs, freight, and taxes can be difficult to manage, and are influenced by market volatility from fuel prices and exchange rates. With NetSuite, cost accountants can allocate and track landed cost values at a line-item level.
This preference lets you track one or more landed cost categories for a specific line item. You can also automatically distribute the cost based on an attribute such as weight or value within a transaction.
When you use this preference, you can specify landed cost allocation amounts on a per-line basis on transactions and receipts. You do not have to distribute the cost based on an allocation method at a transaction level basis.
For every item received, a landed cost sub-record can store values which are reflected in inventory valuation reports. These sub-records let you account for landed costs in a manner that makes inventory valuations reflect the true economics of all costs related the item.