Landed cost in Zoho Inventory captures all the additional expenses incurred to get goods from the vendor to your warehouse, beyond the purchase price. Common landed costs include freight charges, import duties, customs brokerage fees, and insurance.
You create a landed cost record against a goods received note and specify the total additional expense. Zoho Inventory distributes this cost across the received items proportionally, either by quantity, weight, or value, increasing each item’s per-unit cost.
Including landed costs in your inventory valuation ensures that your COGS reflects the true acquisition cost, not just the vendor invoice price. This prevents understating COGS and overstating gross margins, which is a common error in businesses that import goods.
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