Landed Cost
The price on your supplier's bill is rarely the true cost of a product. By the time goods reach your shelf, you've also paid for freight, insurance, customs duty, and clearing or handling charges. Landed Cost adds those extra costs onto the value of the stock you received — so an item's recorded cost reflects what it really cost to land with you, not just what the supplier charged.
Get this right and every margin, valuation and cost-of-sales figure downstream is honest. Skip it, and your products look cheaper than they were.
Availability depends on your plan and your role.
When to use it
Use a Landed Cost after you've received goods, once the freight, duty or clearing bills come in — which is often a few days later than the goods themselves.
| The extra cost | Typical example |
|---|---|
| Freight | The transporter's charge to bring the shipment to you. |
| Insurance | Cover for the goods while in transit. |
| Customs duty | Import duty paid to clear the goods. |
| Clearing / handling | Agent fees, port handling, unloading. |
You pick the goods you received, enter these charges, and choose how to spread them across the items. Bizconnekt raises the item costs accordingly — you don't work out each item's share by hand.
How the extra cost gets shared out
A single freight bill usually covers many items in one shipment. Landed Cost splits that bill fairly across them using an allocation basis you choose:
| Basis | How it shares the cost | Good when… |
|---|---|---|
| By value | Pricier items absorb a bigger share. | Charges roughly track how valuable the goods are. |
| By quantity | Each unit takes an equal share. | Charges track how many units there are, like handling. |
For example, a freight bill spread by value puts more of the cost onto your high-value items and less onto the cheap ones — because that's closer to reality for shipping.
What it does to your numbers
Once you save a Landed Cost:
- The cost of each affected item goes up by its share of the charges.
- Your stock valuation now reflects the true landed cost.
- Every future margin and cost-of-sales figure uses the honest cost, not the supplier price alone.
You read the results in the inventory valuation reports, the same place you check what your stock is worth.
Getting started
| Task | Guide |
|---|---|
| Add freight, duty or handling to received stock | Add a Landed Cost |
| Review the extra costs you've applied | View Landed Costs |
Related guides
- Stores & Inventory — where stock lives and what it's worth
- Bills — record the supplier and charge bills a landed cost draws on
- Items — the items whose cost a landed cost raises
Need help? Contact support at support@bizconnekt.com