Landed Cost Overview

The total cost of obtaining stock includes the material charge for an item. It also includes any charges associated with getting items into the warehouse and available for sale. These additional expenses contribute to the total cost of goods sold and affect inventory valuation.

Use the Landed Costs feature to track the expenses you incur when you purchase your inventory. Landed costs let you 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:

Any landed cost associated with an item is added to the asset value of an inventory item, letting you calculate profitability accurately.

For example, Bob buys Deluxe Widgets from his vendor, which he then resells to customers. To track profits, Bob needs to know the cost of each widget he buys and deduct it from the widget sales income. Bob must also pay a shipping charge for each widget order he receives. Therefore, the cost for shipping must also be deducted from the widget sales income to calculate profits accurately.


The inventory valuation report can be customized to include the Lot/Serial Numbers field. The landed cost charges show with the same transaction ID number, the landed cost category name in the description column and zero quantity.

For more information, see Inventory Valuation Report.

Additional Information

Related Topics

General Notices