Are you currently making the most of the Landed Costs feature and keen to specify Landed Cost Allocation amounts on a per-line basis in your transactions and receipts? Say goodbye to the hassle of distributing costs based on allocation methods at a transaction level. Landed costs can often form a significant chunk of the total expenses associated with your products. With the Landed Cost Allocation per Line feature, you can gain a more detailed insight into the location-specific expenses linked to your purchases from global suppliers and vendors.
Understanding Landed Costs: A Comprehensive Approach
When you're determining the pricing for the items you sell, it's imperative to take into account all the costs incurred during the product acquisition process and incorporate them into your selling price. This includes expenses associated with moving products from various supplier locations to your warehouse. Landed costs encompass a range of elements, from duties and tariffs to freight and taxes, which can be intricate to manage and are prone to fluctuations influenced by factors like fuel prices and exchange rates. Fortunately, NetSuite empowers cost accountants to allocate and track these landed costs at the level of individual line items.
This handy preference lets you monitor one or more categories of landed costs for each line item, with the added option to automatically distribute the cost based on attributes like weight or value within a transaction. This flexibility means you can precisely specify the allocation of landed cost amounts on a per-line basis within your transactions and receipts, eliminating the need to use an allocation method at the transaction level.
For each received item, a landed cost sub-record can store values, which are then reflected in inventory valuation reports. These sub-records enable you to account for landed costs in a way that accurately represents the full economic impact of all expenses associated with the item.
Making Use of Landed Cost Allocation Per Line
To start making use of Landed Cost Allocation on individual lines, follow these steps:
- Activate the preference by navigating to Setup > Accounting > Preferences > Accounting Preferences.
- Click on the Order Management subtab.
- Check the Landed Cost Allocation per Line box. You can change this default option by clearing the box when entering new transactions.
- Save your preferences.
Once this preference is enabled, all new item receipts, credit card charges, vendor bills, and checks will automatically default to using landed cost per line.
How to Enter Landed Costs Per Line
Now, let's delve into how to use Landed Cost Allocation Per Line on your transactions:
After enabling the Landed Cost Allocation per Line preference, you can allocate landed costs on individual transaction lines for the following transactions: checks, vendor bills, credit card charges, and item receipts. When Landed Cost per Line is enabled on a transaction, the transaction will no longer refer to the Landed Cost subtab since landed costs are now entered on a per-line basis and are solely defined by entries on each line.
To enter landed costs per line:
- Edit or enter a new item receipt, credit card charge, vendor bill, or check.
- Check the Landed Cost per Line box if it's not already checked.
- You'll notice a Landed Cost icon for items that track landed costs. Click the Landed Cost icon () to open an entry window.
- The landed cost data you enter is saved as a sub-record of the transaction.
- You have two options:
- Enter a single cost category for the line: Select a cost category in the Cost Category field and enter the amount for that category.
- Enter multiple cost categories for the line: Click "Add Multiple," then use the green arrow to choose a cost category, enter an amount for each category, and click "Done."
- Finally, click "OK."
Explore More about Landed Costs and NetSuite
If you're looking to expand your knowledge about landed costs or Landed Cost per Line on transactions, please don't hesitate to get in touch with Concentrus. Our team at Concentrus Cloud ERP Solutions is a leading provider of innovative cloud-based enterprise resource planning (ERP) solutions, including NetSuite. We have a dedicated team of NetSuite experts who offer a wide range of services, from NetSuite price analysis and NetSuite training to NetSuite integration services.
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Concentrus is a leading provider of innovative cloud-based enterprise resource planning (ERP) solutions, including NetSuite. Our team of NetSuite experts offers a range of services, including NetSuite price analysis, NetSuite training, and NetSuite integration services.
Our goal is to help businesses of all sizes maximize their investment in NetSuite by providing expert NetSuite cost optimization and implementation strategies. With years of experience as a NetSuite partner, our NetSuite administrators and NetSuite consultants are well equipped to help businesses of all sizes with their NetSuite consulting needs.
Whether you're looking for a NetSuite consultant to help with your NetSuite implementation or you need ongoing NetSuite support, Concentrus is here to help.
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