1. SCM (Supply Chain Management)
  2. Vendors, Purchasing, and Receiving
  3. Purchasing and Receiving
  4. Expenses
  5. Landed Cost
  6. Landed Cost Allocation per Line

Landed Cost Allocation per Line

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.

To use Landed Cost Allocation on individual lines, you must first enable the preference.

Note:

This preference is available only if the Landed Costs feature is enabled in your account.

To set the Landed Cost Allocation per Line Preference:

  1. Go to Setup > Accounting > Preferences > Accounting Preferences.

  2. Click the Order Management subtab.

  3. Check the Landed Cost Allocation per Line box.

    Note:

    When this preference is enabled, all new item receipts, credit card charges, vendor bills, and checks default to use landed cost per line.

    You can change this default option by clearing the Landed Cost Allocation per Line box when entering new transactions.

  4. Click Save.

Using Landed Cost Allocation Per Line on Transactions

After you set the Landed Cost Allocation per Line preference, you can allocate landed costs on individual transaction lines for the following transactions:

When you enable Landed Cost per Line on a transaction, the transaction no longer references the Landed Cost subtab on the transaction. This is because landed costs are no longer entered on a per-transaction basis. Landed costs are entered on a per-line basis and are defined solely by entries on each line.

To enter landed cost per line:

  1. Edit or enter a new item receipt, credit card charge, vendor bill, or check.

  2. Check the Landed Cost per Line box if it is not already checked.

    You see a Landed Cost icon for items that track landed cost.

  3. Click the Landed Cost icon (Screenshot of the Landed Cost icon) to open an entry window.

    Landed cost data you enter is saved as a sub-record of the transaction.

  4. Do one of the following:

    1. Enter a single cost category for the line:

      1. In the Cost Category field, select a cost category.

      2. Enter the amount for that category.

    2. Enter multiple cost categories for the line:

      1. Click Add Multiple.

      2. Click the green arrow to choose a cost category.

      3. Enter an amount for each category.

      4. Click Done.

  5. Click OK.

Additional Information

Vendor Bills
Receiving Orders

Related Topics

Related Topics

General Notices