Landed Cost
For many businesses, freight, duties, and taxes represent a significant portion of purchasing costs. That is why it is important for these expenses to be included in inventory valuation, without requiring manual calculations. With Tracelink’s Landed Cost feature, you can allocate freight and duty costs directly to your products. Costs are distributed according to predefined allocation methods that you choose, whether based on weight, value, volume, or quantity, ensuring a consistent and accurate inventory valuation. This saves time, provides more precise financial data, and allows you to focus on running your business instead of managing manual calculations.
What creates the need for landed cost allocation?
For some businesses, freight, duties, and taxes represent a significant part of the total purchasing cost. As a result, there is a need to allocate these costs across purchased products so they become part of the inventory value. This ensures a more accurate inventory valuation and provides a true picture of the actual cost of goods.
What is the challenge?
It can be challenging to allocate these costs manually without having to calculate and distribute them across each individual product line every time.
What is the solution?
The solution is Tracelink’s Landed Cost feature, which allows freight, duty, and tax costs to be allocated directly to purchased products. In practice, two additional fields or buttons are added to your purchase lines, making it easy to enter freight and duty/tax amounts. Tracelink then automatically distributes these costs across the relevant purchase lines based on your chosen allocation method.
Please note:Before getting started with Landed Cost, we recommend consulting with your accountant to ensure that the feature aligns with your financial processes in e-conomic and is set up in a way that supports your accounting requirements.
Would you like to learn more about Landed Cost or add the feature to your solution? Contact Tracelink Support, and we will be happy to assist you.
September 2025