Landed Cost is an essential way to calculate the true cost of each product you purchase by determining the total cost for you to acquire that product from the factory floor to your warehouse.
Landed Cost could be calculated as follows:
Freight + Customs + Duties + Insurance = Landed Cost
Landed Cost per unit is where you allocate all of the landed costs back to each of the products you purchased based on a selected allocation method.
Allocations methods supported by Finale Inventory:
- Subtotal of the item
- Weight of the item
- Quantity of the item
- Volume (CBM) of the item
How to setup Landed cost or cost allocation:
- Go to Application Settings, Purchasing tab
- Click on the Discounts and Fees on the left
- Create a cost/fee Name for collecting the cost for a charge you incur on a purchase order
- Select an allocation method
- Use this cost/fee on a purchase order
To view your landed costs for your items on the purchase order, from the Purchase order detail screen, go to the Actions menu, choose the Customize this screen menu item, and scroll all the way to the bottom of the field list. Put a check in the visible box, save changes, and return to the Purchase order detail screen using the back button.
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