Inventory Landed Costs in Odoo
What are Landed Costs?
The landed cost feature includes extra costs into the cost of the product. Extra costs like shipment, insurance, customs duties, purchase costs, transportation fees, shipping charges, tax, service charges, etc.
Also, Landed costs can only be applied to products with a FIFO or AVCO costing method and an automated inventory valuation.
Module
stock_landed_costs [WMS Landed Costs]
Configuration
Enable the landed costs to feature Inventory ➤ Configuration ➤ Settings
Landed Costs
Inventory ➤ Operations ➤ Landed Costs
You will create “Landed costs” from the Inventory module under the operations submenu.
Product Categories
Inventory ➤ Configuration ➤ Product
Open any one product category and set inventory valuation. Set as Automated, and the Costing Method should be either Average Cost (AVCO) or First In First Out (FIFO).
Product
Create New Product and set the product type as Service.
Also, Under the Purchase tab, enable “Is a Landed Cost”.
Landed Costs
Inventory ➤ Operations ➤ Landed Costs
Create New Landed Costs.
In the Additional costs tab, you can add a Product with description, Account, Split method, and Cost.
Valuation Adjustment
Landed Costs under the Valuation Adjustment tab, you can specify the Cost Line, Product, Weight, Volume, Quantity, Original Value, New Value, and Additional Landed Costs.
Landed Cost for Transfer
Additional Cost
Add additional cost for the product. Add product details with the charge to apply. Also, select the Apply On option for which order you want to apply extra cost. Add Receipt number and Vendor bill number. Add cost for how much you apply for the extra cost.
And to apply this cost, click on the compute button.
Valuation Adjustment
When you click on the compute button, Additional cost applies to the product in the valuation adjustment cost.
Landed Cost for Manufacturing
Additional Cost
Add additional cost for the product. Add product details with the charge to apply. Also, select the Apply On option for which order you want to apply extra cost. Add Manufacturing number. Add cost for how much you apply for an extra cost.
And to apply this cost, click on the compute button.
Valuation Adjustment
When you click on the compute button, Additional cost applies to the product in the valuation adjustment cost.
Splits Method
One option in the under tab of Additional cost is the Splits Method. And the Split Method has many options. For example, in the above screenshot, we show the equal splits method in transfer and manufacture orders.
In splits, the method has five options [Equal, By Quantity, By Current Cost, By weight, By volume]
Landed Cost - By Quantity
Landed Cost - By Current Cost
Landed Cost - By Weight
Landed Cost - By Volume
Note: As per the Transfer split method, you can also apply manufacturing.
Functionality for applied landed cost on sale order.
First, you can create a Purchase order. And applied for Purchase Order Receipt Number on Landed Cost.
Now create a Sale Order. And add product and cost, confirm the sale order and see the landed cost on the sale order.
After applying the landed cost, confirm the sale order.
View the Video Here
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