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.
First, you need to activate the use of the landed costs. Go to. Check accounting option Include landed costs in product costing computation & Perpetual inventory valuation, then click on Apply to save changes.
Then go to the. Choose costing method Use a 'Fixed', 'Real' or 'Average' price costing method, 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 custom duties. Go to.
Landed costs are only possible for products configured in real time valuation with real price costing method. The costing method is configured on the product category.