How to set up landed cost in QuickBooks Desktop Enterprise

Learn how to set up landed cost in QuickBooks Desktop Enterprise with Advanced Inventory.

Landed cost helps you track your product costs more accurately. You can use it to factor in things like shipping, customs duties, insurance, and miscellaneous items.

Once you've set up landed cost, you can see it for any bill you add inventory and shipping items to. Here's how to set it up and get started.

Step 1: Set up the landed cost account

To set up landed cost, you’ll need to first turn on Advanced Inventory for QuickBooks Desktop Enterprise (Platinum and Diamond). You can create a new account or use an existing account to map shipping and handling items.

1. From the Edit menu, select Preferences.
2. Select Items and Inventory, then select Company Preferences.
3. Select Advanced Inventory Settings.
4. Select the Landed Cost tab, then select Setup landed cost account or Manage landed cost account.
5. Create new or use an existing Other Current Assets/Cost of Goods Sold account, then select Save & Continue.

Step 2: Map shipping and handling items to the landed cost account

Select the existing shipping and handling items, or add new items like shipping, customs, labour, etc.

1. Select the Shipping & Handling items ▼ dropdown. Note: To create new shipping and handling items, go to the next section.
2. Choose shipping and handling items to map.
3. Select Save & Close.

How to create new shipping and handling items for landed cost

To create new items for landed cost, you’ll need to create an item type of Other Charge then add it to the landed cost account.

To do this:

1. Go to Lists and select Item List.
2. Select Item, then select New.
3. Set it to Type Other Charge.
4. You can name this item something like Customs/Duties, as required.
5. If the This item is used in assemblies or is a reimbursable charge box is checked:
   • Set the Expense Account to the Landed Cost account and the Income Account as you need.
6. If the This item is used in assemblies or is a reimbursable charge box is unchecked:
   • Set the Account to the Landed Cost account.

You can also add the item to the landed cost account in the preferences.

1. From the Edit menu, select Preferences.
2. Select Items and Inventory, then select Company Preferences.
3. Select Advanced Inventory Settings.
4. Select the Landed costs tab, then select Manage landed cost account.
5. Select Save & Continue.
6. Select Add Item, then choose the item to add.
7. Select Save & Close.

Now that you’ve mapped shipping and handling items, you can calculate landed cost in QuickBooks Enterprise Services.