How to set up landed cost in QuickBooks Desktop Enterprise

Landed cost helps you track the total cost of your inventory, including additional expenses like freight, duties, and insurance. This provides a more accurate picture of your true product costs and profitability.

Prerequisites

To use this feature:

• Ensure you have an active QuickBooks Enterprise Platinum or Diamond subscription with Advanced Inventory.
• Ensure Advanced Inventory is enabled.
• Only users with Admin or External Accountant roles, or specific permissions for "Landed Cost" under "Inventory," can set up landed cost.

Step 1: Set up the landed cost account

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.
5. Create a new or use an existing Other current asset/Cost of goods sold account.
6. 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, and labor:

1. Select the Shipping & Handling items ▼ dropdown.
2. Choose shipping and handling items to map.
3. Select Save & Close.

Step 3: Create new items for landed cost

You’ll need to create an item type of Other Charge and then add it to the landed cost account:

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

Additional steps

Now that you’ve mapped shipping and handling items, you can:

• Calculate landed cost in QuickBooks Enterprise Services
• Find answers in our Landed cost FAQs.