Supply Chain Management SuiteApp

Supply Chain Management SuiteApp

Estimated Landed Costs – How you can track the true costs of getting inventory to your warehouse.


This tip will show you how to extend NetSuite’s Landed Cost feature and automate the calculation of landed cost estimates to apply to transactions.


Why estimate and track landed costs?


Prerequisites for Estimated Landed Cost



How to use the Estimated Landed Cost Feature

  1. Create Landed Cost Templates – when a Landed Cost Template is applied to a transaction, landed costs are calculated based on the Cost Categories, allocation method and cost factor setup on the template.
    1. Name the template
    2. Enter a Description
    3. Select the Currency
    4. Select one or more Cost Categories
    5. For each Cost Category select the following:
      • Select the appropriate allocation method (Weight, Quantity, Flat Amount, % Value)
      • Enter the value of the Cost Factor
    6. Save the Cost Template




  1. Assign Landed Cost Templates to item records – After setting up landed cost templates, you can map items to the estimated landed cost templates.

NOTE: ensure that the ‘Track Landed Cost’ box is checked on the item record.



  1. Create a transaction:
    1. Purchase Orders or Standalone Vendor Bills:

Add items with a default Estimated Landed Cost template or select the Estimated Landed Cost to apply to the transaction.

  1. Item Receipt:

The cost calculation on the Item Receipt record is based on the Landed Cost Template inherited from the PO


  1. On the PO below a Landed Cost Template defaulted to the transaction from the Item Record:



Receive the PO




In the above example, the Inventory (Asset) account will be debited by ($77.33). This is the sum of the direct item costs plus the Estimated Landed Costs from the Purchase Order.  The offsets are as follows:


Total = $77.33



After receiving the actual charges for delivering your inventory, you can edit the Item Receipt to enter the actual Landed Costs. You can use only either estimated or actual landed cost. When both are set up in a line item, actual landed cost entries are overwritten when you save the record. If you want to switch from estimated to actual landed cost, verify that no landed cost template is selected for the line item.


Use Cases