ANS-1829 · INVENTORY & ITEM MANAGEMENT
How Are Landed Costs Incorporated into Item Costing in NetSuite?
Understand how NetSuite automatically integrates landed costs with inventory item costs at the point of receipt, impacting overall valuation.
Short answer
In NetSuite, landed costs are automatically added to an item's cost. This integration happens at the point of receipt into inventory, ensuring that all associated expenses like freight and duties are accurately reflected in the item's valuation. This process is crucial for precise inventory accounting and calculating the true cost of goods sold.
Scenario
Organizations often seek clarity on how NetSuite manages the inclusion of landed costs in the overall valuation of inventory items. A common inquiry revolves around the specific timing and mechanism by which these additional expenses, such as shipping, customs, and insurance, are integrated into an item's cost within the system. This understanding is critical for accurate financial reporting and inventory valuation.
Solution
NetSuite automatically incorporates landed costs into the total cost of an item. This integration occurs precisely at the moment the item is received into inventory. Therefore, upon the successful receipt of an item into stock, its cost will reflect not only the vendor's purchase price but also any applicable landed costs, providing a comprehensive and accurate valuation.
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