Typically, “landed cost” refers to costs connected with international shipping, like taxes and fees. If your business ships to international customers regularly or imports or exports goods, then you’ll need to know the landed cost for each different type of product to achieve optimal pricing on your merchandise.

Landed cost is an important calculation for small business owners. The earlier you know your international shipping expenses, the earlier you can plan for how to cover them, make a profit, and maintain competitive prices.

There are two ways of Allocate Landed Cost in Localizebook:

1. Allocate landed cost on function Landed Cost Allocation.
2. Allocate Landed Cost by Vendor.

Before making a Landed Cost Allocation

Step 1: Create an item for any cost that needs to be allocated with the cost of your product. When you create an item, the item type you need to choose as a service and chart of account you choose as cost of sales.

Step 2: After creating an item ready, you can go to make a transaction as normally in the Purchase (Bill) function on the Landed Cost page.

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Landed Cost Allocation

Go to allocate landed cost on function Landed Cost Allocation in Localizebook:

1. Go to the Accounting menu.
2. Click on Landed Cost Allocation.
3. Click on button +Add in the top-right of the page:

1.Set your number reference.

2.Choose the allocation method “Manual, Qty, or Value”.

3.Enter the basic information of Landed Cost Bill “Vendor, Bill No., and Item”

4.Enter the basic information of Bill Inventory “Vendor and Bill No.”

5.Specify the value or Qty of items on the “Manual” column.

1. After filling all with your information:
2. Save: Save the landed cost allocation and close the window.
3. Close: Close window without saving the landed cost allocation.

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Landed Cost by Vendor

Go to allocate landed cost on Vendor in Localizebook:

1. Go to the Vendor menu.
2. Click on Vendor Center.
3. Select on Name Vendor.
4. Select on the Bill transaction that you want to include landed cost.
5. Click on button and select on Allocate Landed Cost:

1. You will be redirect to this below page:
2. Set your number reference.
3. Choose the allocation method “Manual, Qty, or Value”.
4. Enter the basic information of Landed Cost Bill “Vendor, Bill No., and Item”
5. Specify the value or Qty of items on the “Manual” column.

1. After filling all with your information:
2. Save: Save the landed cost allocation and close the window.
3. Close: Close window without saving the landed cost allocation.