Optimizing Landed Cost Management During Receiving in NetSuite 2026.1

In NetSuite 2026.1, the ability to manage landed costs during the receiving process has been enhanced with the introduction of the Set Landed Cost During Receiving system rule. This feature is designed for businesses that want greater control over how costs associated with inventory are accounted for, especially in a multi-currency and multi-supplier environment.

Understanding Landed Costs

Landed costs refer to the total cost of a product once it has arrived at the buyer’s doorstep. This not only includes the purchase price but also shipping charges, customs, duties, and any other associated costs. Properly managing these costs is critical for accurate accounting and pricing decisions.

Benefits of the Set Landed Cost During Receiving Feature

Accurate Financial Reporting: By capturing all the associated costs, organizations can ensure their financial reports reflect true product costs.
Improved Inventory Valuation: Accurate landed costs help maintain reliable inventory valuation, affecting profit margins and decision-making.
Efficiency in Operations: Automating the landed cost application during the receiving process reduces manual entry errors and saves time, which can be reallocated to more strategic tasks.

How to Activate the Set Landed Cost During Receiving System Rule

To get started with this feature, administrators can enable the Set Landed Cost During Receiving rule. Here’s a step-by-step guide:

Navigate to Setup: Go to Setup > Accounting > Accounting Preferences.
Find Landed Cost Settings: In the Landed Costs section, locate the Set Landed Cost During Receiving option.
Enable the Rule: Check the box to activate the feature for all purchase orders, transfer orders, and inbound shipments.
Save the Changes: Don’t forget to save your preferences to apply the changes.

Key Considerations

Compatibility: Ensure that all stakeholders are aware of this change and that it’s compatible with existing workflows.
Training: Provide training to warehouse and procurement teams to understand how to input and interpret landed costs efficiently.
Testing: Before rolling it out company-wide, consider testing the feature in a controlled environment to ensure it meets your operational needs without introducing any disruptions.

Real-World Application

Imagine a scenario where your company imports electronics from overseas. Previously, the costs associated with shipping, customs, and tariffs could be recorded as separate line items, complicating your financial analysis. With the Set Landed Cost During Receiving feature, you can enter these costs during the receiving process, ensuring all related expenses are collated into a single cost entry. This provides clearer insights into profit margins per unit sold and helps in making informed pricing strategies.

Conclusion

The ability to set landed costs during receiving not only streamlines processes but ensures businesses can effectively manage their inventory accounting with precision in NetSuite 2026.1. Leveraging this feature can lead to improved efficiency and more accurate financial reporting, allowing your business to thrive in today’s competitive landscape.

Key Takeaways:

The Set Landed Cost During Receiving feature streamlines the inclusion of all costs associated with inventory.
Activation is simple and can be done via Accounting Preferences in NetSuite.
Training and testing are crucial to ensure smooth implementation.
This feature enhances workflow efficiency and accuracy in financial reporting.
Accurate landed costs lead to better pricing decisions and inventory valuation.