Landed costs can comprise a significant portion of total product cost per item. The Landed Cost Allocation per Line preference enables the best insight for tighter tracking of location-specific costs of your purchases from suppliers and vendors globally.
When pricing items you sell, it is important to assess all costs related to acquiring the product and factor them into your selling price. This can include costs necessary to bring your product from suppliers in many locations to your warehouse door. Landed costs for things like duties, tariffs, freight and taxes can be difficult to manage and 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 gives the ability to 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 the Landed Cost Allocation per Line preference is enabled, you can specify landed cost allocation amounts on a per-line basis on transactions and receipts rather than distributing 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. Using these records, you have the flexibility to account for landed costs in a specific 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 enable the Landed Cost Allocation per Line Preference:
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Go to Setup > Accounting > Preferences > Accounting Preferences.
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Click the Order Management subtab.
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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 box to disable Landed Cost Allocation per Line when entering new transactions.
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Click Save.
Using Landed Cost Allocation Per Line on Transactions
After you have enabled the Landed Cost Allocation per Line preference, you can allocate landed costs on individual transaction lines for the following transactions:
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checks
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vendor bills
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credit card charges
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item receipts
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:
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Edit or enter a new item receipt, credit card charge, vendor bill, or check.
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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.
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Click the Landed Cost icon (
) to open an entry window.Landed cost data you enter is saved as a sub-record of the transaction.
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Do one of the following:
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Enter a single cost category for the line:
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In the Cost Category field, select a cost category.
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Enter the amount for that category.
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Enter multiple cost categories for the line:
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Click Add Multiple.
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Click the green arrow to choose a cost category.
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Enter an amount for each category.
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Click Done.
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Click OK.
Landed Cost per Line on Purchases
After you have enabled the Landed Cost Allocation per Line preference, you can check the Landed Cost per Line box on purchase orders.
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Check this box to enter a landed costs for individual lines.
When this preference is enabled, the landed cost subtab is disabled and allocation is not used.
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Clear this box if you are not entering landed costs for individual lines.
When this preference is disabled, the landed cost subtab is used.
Important
This setting cannot be changed after an item receipt is recorded against the purchase order.