{"id":4188,"date":"2026-05-29T20:44:43","date_gmt":"2026-05-29T20:44:43","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4188"},"modified":"2026-05-29T20:44:43","modified_gmt":"2026-05-29T20:44:43","slug":"landed-cost-books-zoho-books","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/landed-cost-books-zoho-books\/","title":{"rendered":"Landed Cost (Books)"},"content":{"rendered":"<style>.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Landed cost in Zoho Books is the total cost of bringing inventory into your warehouse, including the purchase price plus all ancillary charges such as freight, insurance, customs duty, and handling, allocated across the items in the purchase to show the true cost per unit.<\/div>\n<div class=\"gt-section\">\n<h2>Why Landed Cost Matters<\/h2>\n<p>If you record only the invoice price and ignore freight and customs, your inventory valuation will be understated and your profit margins will be overstated. For imported goods, customs duty alone can add 20% to 30% to the cost. For domestic purchases with significant freight charges, the landed cost per unit can be substantially higher than the purchase price. Accurate landed cost tracking in Zoho Books ensures your cost of goods sold figure on the P&#038;L reflects the true cost of inventory sold.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Adding Landed Cost in Zoho Books<\/h2>\n<p>Open the relevant purchase order or bill in Zoho Books. Click Add Landed Cost. Select or create a cost type (Freight, Customs Duty, Insurance, Handling Charges). Enter the total amount for that cost type. Choose the allocation method: by quantity (each unit absorbs an equal share), by value (each item absorbs a proportional share based on its value), or by weight (requires weight data on items). Zoho Books calculates the allocated cost per line item and adds it to the inventory value of each item received.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Landed Cost and GST in India<\/h2>\n<p>Customs duty paid on imported goods is not subject to GST (it is a customs levy, not a GST levy), so the customs duty amount is a pure cost to add to the inventory value. IGST on imports is paid as an import duty and is separately claimable as ITC under GST. Zoho Books handles IGST on imports through the &#8220;Import of Goods&#8221; tax treatment, recording the IGST as ITC while adding customs duty as a landed cost to the inventory value.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Industry:<\/strong> Electronics Import \u2014 A Pune electronics importer brings in mobile phone components from China. The purchase price is INR 20 lakhs, customs duty is INR 4 lakhs, and freight is INR 80,000. Zoho Books allocates INR 4.8 lakhs across the items proportionally by value, increasing the per-unit cost and ensuring the inventory is valued at its true acquisition cost.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/item-books-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Item<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/bill-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Bill<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/igst-zoho-books\/\" class=\"gt-related-pill sp-content-link\">IGST<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/purchase-order-books-zoho-books\/\" class=\"gt-related-pill sp-content-link\">Purchase Order<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is Landed Cost in Zoho Books?<\/strong><\/p>\n<p>Landed cost in Zoho Books is the total cost of acquiring inventory including purchase price plus freight, customs, insurance, and handling fees. Zoho Books lets you allocate these additional costs across items to reflect the true per-unit cost.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>How do I add a landed cost in Zoho Books?<\/strong><\/p>\n<p>Open a purchase order or bill and click Add Landed Cost. Enter the cost type, amount, and allocation method. Zoho Books distributes the cost across line items proportionally and updates inventory cost accordingly.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Landed cost in Zoho Books is the total cost of bringing inventory into your warehouse, including the purchase price plus all ancillary\u2026<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Landed Cost (Books) | Zoho Books Glossary","seo_description":"Landed cost in Zoho Books adds freight, customs, and import charges to the cost of purchased inventory. Learn how to allocate landed costs accurately.","seo_keyword":"landed cost books zoho books","seo_faqs":"[{\"q\": \"What is Landed Cost in Zoho Books?\", \"a\": \"Landed cost in Zoho Books is the total cost of acquiring and receiving inventory, including the purchase price plus all additional charges such as freight, customs duty, insurance, and handling fees. Zoho Books lets you allocate these additional costs across the items in a purchase to reflect the true cost of inventory.\"}, {\"q\": \"How do I add a landed cost in Zoho Books?\", \"a\": \"Open a purchase order or bill in Zoho Books and click Add Landed Cost. Enter the cost type (freight, customs, insurance, etc.), the amount, and the allocation method (quantity, value, or weight). Zoho Books distributes the additional cost across the line items proportionally and updates the inventory cost accordingly.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1246],"class_list":["post-4188","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-books"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4188","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4188"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}