Landed costs are a critical aspect of calculating the true cost of your inventory, including expenses beyond the unit cost, such as shipping, tariffs, and production fees. In Settle, managing and adding these costs is straightforward, ensuring that you can track all related expenses accurately.
Add landed costs
Adding landed costs in Settle is streamlined and simple. Here's how to do it:
Create a purchase order (PO)
Click here for a step-by-step guide on how to create a Purchase Order.
Link additional expenses
Note that before adding any additional expenses, landed costs = unit costs.
After creating your PO, you'll see an "Additional expenses" tab at the bottom of your PO.
Click this tab to link additional expenses related to the inventory purchase
If you don’t have the bill yet, you can add an estimated expense.
If you already have the bill uploaded to Settle, you can click “add from existing bill.”
You can also add an estimated expense and link it to an existing bill. Note that by doing so, the cost in the existing bill will overwrite the estimated expense cost.
Select expense type
Choose the type of expense you're adding (e.g., shipping, tariffs, surcharges, production costs, inventory, etc.).
Select an allocation model and add cost. There is a default quantity of 1 that you can update, if needed. Read more for a detailed explanation of how allocation models work.
Each expense type helps categorize and allocate costs accurately.
View landed costs
Access landed cost information in two places:
On the PO summary view: Get an overview of all landed costs for the order.
On individual items: To see a historical breakdown of landed costs for an individual item, go to the catalog, select the catalog item, and hover over the landed cost column.
FAQs
Are there any PO statuses in which you cannot add additional expenses?
No, you can add additional expenses regardless of the PO status. This flexibility allows you to account for all costs at any stage of the purchase order process.
When you duplicate a PO, do landed costs also get duplicated?
No, when you duplicate a PO, the additional expenses, including landed costs, are not carried over to the new PO. You’ll need to manually add any additional expenses to the duplicated PO if needed.
Do additional expenses also sync to QBO along with the PO?
It depends on the nature of the expenses. If they are estimated expenses, they will not sync to QBO. However, if a bill is linked to the PO, whether the expenses sync to QBO will depend on how the bill is configured in your system.
How does my Landed Cost calculation affect my accounting sync?
It doesn't. Landed costs numbers will not be synced back to your accounting platform.
How do I add my shipping box, fulfillment costs, or Amazon placement fees to my landed costs?
Landed costs serve the core of your Cost of Goods Sold (COGS) calculation. COGS generally encompasses all direct expenses related to manufacturing and selling a product, including materials, labor, and freight. Fulfillment expenses, such as packaging, shipping, and handling, are usually classified as part of overhead or selling costs.