We can use the Landed Costs feature to track the expenses we incur when purchasing our inventory. Landed costs provide the ability to increase the asset value of inventory by including additional expenses associated with procuring stock, such as freight and duty fees.
Expenses that contribute to landed costs can include the following:
- shipping charges
- freight fees
- origin and destination charges
- import fees
- duty fees (excise and customs)
- taxes
- insurance
- handling charges
Any landed cost associated with an item is added to the actual asset value of an inventory item, allowing us to calculate profitability accurately.
To enable the Landed Cost feature go to Setup > Company > Setup Tasks > Enable Features, on the Items & Inventory subtab.
On the item record purchase/inventory tab we can see the track landed cost check box, tick off the same if we want the item to track landed cost.
To get started tracking landed cost, go to Setup > Accounting > Accounting > Lists > New and click Landed Cost Category to create a landed cost category that we can detail on purchase order receipts, bills, and item receipts.
On the item receipt page tick the landed cost per line check box if we want to track the landed cost per line basis.
Click the landed cost field in the line level
G/L impact of landed cost
