What is Landed Cost?
Landed cost is the total price of a product or shipment once it has arrived at a buyer’s doorstep.
The landed cost includes the original price of the product, transportation fees (both inland and ocean), customs, duties, taxes, tariffs, insurance, currency conversion, crating, handling, and payment fees.
Commonly seen issues
NetSuite allows application of the landed cost on the Item Receipt. So the only options of applying landed cost is either to add a estimated cost on Item receipt or apply landed cost manually.
Many of our customers have complained of facing issues with NetSuite landed cost application to item . Most of the time the cost of freight, custom, tariffs, etc are only seen when the invoice from Vendor is received.
This invites to human error as sometimes users forget to apply landed cost to the receipt
Solution Created by Us
To Mitigate the human error, we have built an automation which will apply the landed cost from the Vendor Invoice automatically.
The best part is we can define how we want to segregate the landed cost between multiple items and not just stick with NetSuite standard of by quantity, value or weight.
The process starts when creating a vendor invoice you can select for which items you are applying the landed cost.
Once the invoice is saved, because of our automation NetSuite will look for the related receipt of this bill and apply the landed cost.