Setting Up Landed Cost in QuickBooks Enterprise
Landed cost is the total price of a product once it has arrived at a buyer's doorstep. This cost includes the original price of the product, transportation fees, customs, duties, taxes, insurance, currency conversion, and other handling fees. QuickBooks Enterprise provides a robust way to track landed costs, giving businesses a comprehensive view of their profitability and inventory value. This guide will walk you through the steps to set up landed cost in QuickBooks Enterprise, best practices, common troubleshooting, and answers to frequently asked questions.
Does QuickBooks payroll have 24 hour support | How do I contact intuit QuickBooks Enterprise? | How DO I Contact QuickBooks Enterprise Support
How Do I Contact QuickBooks Payroll Support | How Do I Contact QuickBooks Payroll Error Support |How do I contact QuickBooks Intuit Desktop Support by phone | Does QuickBooks Payroll have 24 hour support
Why Use Landed Cost?
For businesses that import goods or frequently deal with additional costs beyond the purchase price, it’s essential to know the true cost of inventory. This helps in:
Accurate Profit Analysis: Understand your margins better.
Improved Inventory Management: Track true inventory value.
Better Pricing Strategy: Set prices that factor in all costs.
Decision Making: Make informed purchasing and sales decisions.
Step-by-Step Guide to Set Up Landed Cost in QuickBooks Enterprise
Enable the Landed Cost Feature
Open your QuickBooks Enterprise.
Go to the Edit menu and select Preferences.
Choose Items & Inventory from the left panel.
Click on the Company Preferences tab.
Check the box labeled Track Landed Cost.
Click OK to save your changes.
Set Up a Landed Cost Account
Go to the Lists menu and select Chart of Accounts.
Click on the Account drop-down menu and choose New.
Choose Other Current Asset and name the account “Landed Cost.”
Click Save & Close.
Create a Landed Cost Item
Go to the Items & Services list.
Click on the Item drop-down and choose New.
Select Other Charge as the item type.
Name the item “Landed Cost” or a specific landed cost such as “Freight Charges.”
Link the item to the Landed Cost account you created in the previous step.
Set the rate or leave it as zero if the cost varies.
Click Save & Close.
Create a Bill for Additional Costs
When you receive a bill for shipping, duties, or any other costs related to your inventory purchase, enter it into QuickBooks.
Go to Vendors and select Enter Bills.
Choose the vendor who sent the bill and enter the amount.
Use the Landed Cost item you created earlier.
Save the bill.
Apply Landed Cost to Inventory
Go to Vendors and select Receive Items.
Enter the purchase order and link it to the respective vendor.
Once you’ve received the items, go to Inventory > Landed Cost.
Select the bills that need landed costs applied.
Choose the item receipts or bills to which the landed costs should be allocated.
Click Allocate to spread the landed costs across your inventory items.
Review Landed Costs on Inventory Valuation Reports
Go to Reports and select Inventory.
Choose the Inventory Valuation Summary or Inventory Valuation Detail report.
Verify that your landed costs are correctly allocated, showing the true cost of your inventory items.
Best Practices for Using Landed Cost in QuickBooks Enterprise
Keep Separate Landed Cost Accounts: If you frequently incur different types of additional costs (e.g., freight, customs, insurance), create separate accounts for better tracking.
Regularly Update Costs: The landed cost feature in QuickBooks Enterprise will only be accurate if you consistently update the costs as bills come in. Delays in entering these bills can lead to discrepancies.
Double-Check Vendor Bills: Ensure that you correctly classify each landed cost to avoid errors in your financial reporting.
Review Inventory Reports Frequently: Regularly check your Inventory Valuation reports to ensure all landed costs have been properly allocated and inventory values are accurate.
how do i communicate with QuickBooks | how do i contact quickbooks payroll error support | how do i contact quickbooks intuit payroll support by phone | how do i contact quickbooks Enterprise Support Number | QuickBooks Enterprise support number | Quickbooks Payroll Support Phone Number | How to Contact QuickBooks Enterprise Support number | QuickBooks Enterprise support number
Troubleshooting Common Issues with Landed Cost in QuickBooks Enterprise
Landed Cost Not Showing Up in Reports
Go to the Chart of Accounts and ensure that your landed cost account is correctly set up as an Other Current Asset.
Check that the bills and item receipts have been correctly matched.
Incorrect Allocation of Landed Costs
Double-check the bills for any misclassifications or errors in the linked item.
Review the Landed Cost Allocation screen to ensure the costs have been distributed as expected.
Landed Cost Feature is Grayed Out
Ensure that you are using QuickBooks Enterprise 19.0 or higher. The landed cost feature is not available in older versions.
Verify that you have the Advanced Inventory module enabled.
Can’t Link Multiple Bills to a Single Receipt
Use the Landed Cost Allocation screen to handle multiple bills for the same item receipt. This tool is specifically designed to deal with complex scenarios.
Read More: How to fix QuickBooks payroll Error PS038 Quickly?
FAQs: Landed Cost in QuickBooks Enterprise
Q1: What is included in Landed Cost?
Landed cost can include shipping fees, customs duties, insurance costs, handling fees, and any other charges that are directly related to bringing the inventory to its destination.
Q2: Why can’t I see the Landed Cost feature in my QuickBooks?
The landed cost feature is only available in QuickBooks Enterprise versions 19.0 and higher with the Advanced Inventory module enabled. Ensure you’re using the correct version and that your subscription includes this feature.
Q3: How does QuickBooks allocate landed cost to inventory?
QuickBooks distributes landed costs proportionally based on the inventory items’ value. This ensures that more expensive items absorb a higher share of the landed cost compared to cheaper items.
QuickBooks enterprise desktop support | QuickBooks Desktop Payroll support | Contact QuickBooks Payroll Service | QuickBook Desktop Enterprise Support
Q4: Can I apply landed cost to partially received items?
No, landed cost can only be applied to fully received items. If you have partially received an order, wait until the remaining items arrive before applying landed cost.
Q5: How can I track separate landed cost categories?
Create separate Other Charge items and accounts for different cost categories, such as “Customs,” “Freight,” and “Handling Fees.” Use these items when entering bills to categorize and track costs individually.
Q6: Will landed cost affect my COGS (Cost of Goods Sold)?
Yes, landed cost directly impacts your inventory value. As a result, it affects the Cost of Goods Sold (COGS) when the inventory is sold. This helps provide a more accurate picture of profitability.
Q7: What happens if I forget to enter a landed cost bill?
If you forget to enter a bill, the landed cost will not be reflected in your inventory value, leading to inaccurate COGS calculations. Always ensure that all bills are entered and linked to inventory before closing the books for the period.
https://jamesklaus1402.wixsite.com/forhumanus/post/understanding-and-resolving-quickbooks-error-6210
https://quickbooks.alboompro.com/post/quickbooks-won-t-open-tips-for-immediate-solutions
https://www.ssplace.miami.edu/forum/quickbooks-bank-feeds-error
https://www.ssplace.miami.edu/forum/quickbooks-error-6000-832
https://www.ssplace.miami.edu/forum/quickbooks-error-15241-step-by-step-troubleshooting-guide
https://www.ssplace.miami.edu/forum/quickbooks-error-15241-step-by-step-troubleshooting-guide
https://jamesmiller.alboompro.com/post/ultimate-remedies-for-resolving-quickbooks-error-1904
https://aliajoseph275.hashnode.dev/how-to-fix-the-quickbooks-requires-that-you-reboot-loop
Q8: Can I allocate landed costs to non-inventory items?
No, landed costs can only be allocated to inventory items in QuickBooks. Other item types, such as service items, cannot have landed costs applied to them.
Q9: How do I correct a landed cost error?
If you’ve applied landed cost to the wrong item, open the Landed Cost Allocation screen, deselect the incorrect item, and choose the correct one. Save the changes and review your inventory valuation reports.
Q10: How do I include multiple vendors in the landed cost allocation?
When creating bills for different vendors (e.g., one for freight and another for customs), enter them separately and then go to the Landed Cost Allocation screen. You can allocate landed costs from multiple bills to the same inventory receipt.
Q11: Is it possible to automate the landed cost process?
Currently, QuickBooks does not offer automation for landed cost. You need to manually enter bills and allocate costs. However, you can streamline the process by setting up templates for frequently used vendors and items.
Q12: How can I see the impact of landed cost on profitability?
Run the Inventory Valuation Summary report and compare it with your Profit & Loss statement. The inclusion of landed costs will show a more accurate gross profit margin for inventory-related sales.
Additional Tips for Managing Landed Cost in QuickBooks Enterprise
Use Custom Fields: If you need more granular tracking, consider setting up custom fields for landed costs, such as “Import Charges” or “Freight Allocations.” This will give you a detailed breakdown when reviewing inventory reports.
Reconcile Regularly: Regular reconciliation of your landed cost accounts will prevent discrepancies in your financial statements.
Leverage the Advanced Inventory Module: This module not only supports landed cost but also provides additional features like Bin Location Tracking, Lot & Serial Number Tracking, and FIFO Costing for better inventory management.
By understanding and using the landed cost feature in QuickBooks Enterprise, you can ensure that your inventory values are accurate, your financial reports are reliable, and your business decisions are well-informed. With this guide, setting up and managing landed costs will become a seamless part of your inventory workflow.