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.

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