Process landed costs /visma-net-erp/help/purchases/process-landed-costs section In Visma Net, you can design and maintain landed cost codes to be used to account for various types of additional costs that your company incurs when purchased goods are being shipped to your company warehouses, or when transfer of certain stock is performed between warehouses via an external carrier. 2026-02-19T17:09:06+01:00 # Process landed costs In Visma Net, you can design and maintain landed cost codes to be used to account for various types of additional costs that your company incurs when purchased goods are being shipped to your company warehouses, or when transfer of certain stock is performed between warehouses via an external carrier. Landed costs may depend on specific items, or on items' weight or volume. Some amounts of landed costs may be known in advance, while others become known only when the items are received at the destination warehouse. Process landed costs - overview /visma-net-erp/help/purchases/process-landed-costs/process-landed-costs-overview page In Visma Net, you can design and maintain landed cost codes to be used to account for various types of additional costs that your company incurs when purchased goods are being shipped to your company warehouses, or when transfer of certain stock is performed between warehouses via an external carrier. 2026-02-19T17:09:06+01:00 # Process landed costs - overview In Visma Net, you can design and maintain landed cost codes to be used to account for various types of additional costs that your company incurs when purchased goods are being shipped to your company warehouses, or when transfer of certain stock is performed between warehouses via an external carrier. Landed costs may depend on specific items, or on items' weight or volume. Some amounts of landed costs may be known in advance, while others become known only when the items are received at the destination warehouse. About landed cost codes /visma-net-erp/help/purchases/process-landed-costs/about-landed-cost-codes page The total cost of goods purchased generally includes the purchase price and additional charges, such as freight or other shipping costs and insurance; for an international shipment, it may also include customs duties and other taxes. 2026-02-19T17:09:06+01:00 # About landed cost codes The total cost of goods purchased generally includes the purchase price and additional charges, such as freight or other shipping costs and insurance; for an international shipment, it may also include customs duties and other taxes. The total cost of goods purchased generally includes the purchase price and additional charges, such as freight or other shipping costs and insurance; for an international shipment, it may also include customs duties and other taxes. All these charges, often referred to as **landed costs**, affect the total product cost. Landed costs are the costs incurred, beyond the purchase price the supplier charges for the goods, in the process of bringing the goods to one of your company's warehouses. To accurately calculate the total product cost, you must consider all landed costs. By accurately analysing total product cost statistics, your company can assign the most appropriate prices to the products you sell. ## Landed cost code definition In Visma Net, landed cost codes are used to capture various types of landed costs. For each type of landed costs your company may encounter, create a landed cost code to be used to enter and process that type of landed costs. Most landed costs are not fixed amounts associated with a specific stock item. Landed costs may be fees, such as for shipping and handling, whose amount depends on a shipment's weight, volume, or quantity of items. Accordingly, you need to define how to allocate the incurred amounts among all items in the shipment. The landed cost amounts are ultimately paid to a carrier or customs office (the landed cost supplier) rather than to the supplier that sells the goods. In Visma Net, you create and maintain landed cost codes by using the [Landed cost codes ( PO202000)](/visma-net-erp/help/purchases/purchases-windows/landed-cost-codes-po202000/) window. For each code, you specify the following information: + How the landed cost amount should be allocated among all goods in the shipment. Landed costs can be allocated to stock items based on their quantity, volume, cost, or weight. + What type of landed cost this is. + Which landed cost supplier provides the services. Only suppliers with the **Landed cost supplier** check box selected in the [Suppliers (AP303000)](/visma-net-erp/help/supplier-ledger/supplier-ledger-windows/suppliers-ap303000/) window can be associated with the code. + What account and subaccount is used to accrue landed cost amounts (the Landed cost accrual account and Landed cost accrual account subaccount). + What payment terms are used by the landed cost supplier. + How the landed cost is applied in the Purchases workspace, in the Supplier ledger workspace, or in both workspaces. Some of the landed costs, such as freight, are typically known when the goods are received, and can always be specified directly on purchase or transfer receipts in the Purchases workspace. Landed costs of other types may become known later, and can be entered in the Supplier ledger workspace, on an invoice associated with the original receipt. Some landed costs can be applied in either the Supplier ledger workspace or the Purchases workspace. For details, see [About landed cost application scenarios](/visma-net-erp/help/purchases/process-landed-costs/about-landed-cost-application-scenarios/). + What VAT category is used if the landed costs are service charges subject to taxes. A landed cost code is not associated with any specific currency, so if multi-currency support has been enabled in the system, landed costs are considered as specified in the currency of the document. ## Landed cost allocation method The allocation method of a landed cost defines how the landed cost is distributed among stock items (line items) specified in the document. When you are creating a landed cost code for specific type of landed cost, you can select one of the following allocation methods: By quantity : The landed cost amount is distributed among the line items in proportion to their quantities. This adds a greater percentage of the landed cost to the goods purchased in the largest quantities. If units of measure (UoMs) other than the base UoMs are specified for items, item quantities are calculated with respect to the base UoMs. CAUTION: Use this option for only purchase orders that include similar items with the same base UoM or similar base UoMs. Do not use this option for purchase orders that include disparate items with base units that cannot be compared, such as pallets and tons, or meters and pounds. By cost : The landed cost amount is distributed among the line items in proportion to their extended cost. The extended cost is calculated based on the item's valuation method. This adds a greater percentage of the landed cost amount to more expensive goods. By weight : The landed cost amount is distributed among the stock items proportionally to their weights. This adds a greater percentage of the landed cost to the goods that weigh the most. The weight of the base unit of the stock item is specified on the **Packaging** tab in the [Stock items (IN202500)](/visma-net-erp/help/inventory/inventory-windows/stock-items-in202500/) window. By volume : The landed cost amount is distributed among the applicable items proportionally to their volumes. This adds a greater percentage of the landed cost to goods with more bulk. The volume of the base unit of the stock item is specified on the **Packaging** tab in the [Stock items (IN202500)](/visma-net-erp/help/inventory/inventory-windows/stock-items-in202500/) window. When you add the landed costs to a purchase or transfer receipt or to an invoice with multiple receipts, you can always select specific items whose costs must be updated by the landed costs. On release of the landed cost document, the system generates an inventory adjustment for the stock items listed in the landed cost document. The amount of landed cost to be added to the cost of a particular stock item listed on the adjustment is calculated according to the allocation method.

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 About landed cost application scenarios /visma-net-erp/help/purchases/process-landed-costs/about-landed-cost-application-scenarios page With Visma Net, your company can track landed costs incurred for purchased or transferred stock items, to accurately calculate the total costs of the items. 2026-02-19T17:09:06+01:00 # About landed cost application scenarios With Visma Net, your company can track landed costs incurred for purchased or transferred stock items, to accurately calculate the total costs of the items. ## Typical scenarios of adding landed costs Some of the landed costs, such as freight, are typically known when the goods are received and can be applied to purchase or transfer receipts in the Purchases workspace. Other types of landed costs may become known later, when an invoice from the service provider is received; these landed costs must be specified on an invoice in the Supplier ledger workspace that is linked to the appropriate purchase or transfer receipts. Also, there may be landed costs that can be applied in either of these ways: on a receipt or on an invoice. The way the landed costs of a particular type must be applied to item costs is defined by the application method selected for the appropriate landed cost code. There are two typical scenarios, then, of users tracking landed costs associated with the received items. The scenarios that are possible for the landed costs of specific type are defined by the option selected in the **Application method** field in the [Landed cost codes ( PO202000)](/visma-net-erp/help/purchases/purchases-windows/landed-cost-codes-po202000/) window: + I. **From purchase order**: The landed costs are added directly to a purchase or transfer receipt. + II. **From supplier** The landed costs are added to an invoice that can be associated with an existing purchase or transfer receipt. If the **From both** option is selected the **Application method** field, either of scenarios can be applied. This topic describes how the landed costs can be specified for purchase receipts. ## Scenario I: Landed costs added to purchase or transfer receipt With this scenario, while you are entering a receipt in the [Purchase receipts (PO302000)](/visma-net-erp/help/purchases/purchases-windows/purchase-receipts-po302000/) window, you also enter the landed costs whose codes specify that they are applicable in the Purchases workspace or in both the Purchases and Supplier ledger workspaces. On the **Landed costs** tab of the window, select the landed cost code and specify the landed cost amount. When you release a receipt with landed costs specified, the following documents are generated: + An invoice to be paid to the supplier of the goods + One invoice or multiple invoices to be paid to each landed cost supplier (such as a carrier or customs office) with the landed cost code that was specified on the receipt + A receipt in the Inventory workspace for the goods received into inventory at a specific warehouse + Inventory adjustments that update stock item costs in accordance with the allocation method of the landed cost code, with as many adjustments for each item as there are different landed cost codes. If you configure landed cost codes that allow landed costs to be added directly to a purchase order receipt, you can select the **Release inventory documents automatically** option in the [Purchase order preferences (PO101000)](/visma-net-erp/help/purchases/purchases-windows/purchase-order-preferences-po101000/) window to make sure that the item costs will be promptly updated. If the inventory adjustments were not created, which can happen if some of the accounts and subaccounts required for landed cost processing were not specified for stock items mentioned in the receipt, you use the [Release landed costs (AP506500)](/visma-net-erp/help/supplier-ledger/supplier-ledger-windows/release-landed-costs-from-purchase-invoices-ap506500/) window to generate these adjustments. The receipt is visible on one window, the other, or both, depending on the application method (**From purchase order**, or **From both** method) selected for the landed cost code. When you need to enter the landed costs of a specific type on the purchase receipt, if the exact amount of the landed costs is not known, you can enter the estimated amount under this landed cost code. Later, when the exact amount becomes known, on the purchase invoice generated for the receipt, you can manually adjust the amount of the landed costs. The difference between the previous amount and the adjusted amount is automatically added to the **Landed cost variance** account specified in the [Landed cost codes ( PO202000)](/visma-net-erp/help/purchases/purchases-windows/landed-cost-codes-po202000/) window for the landed cost used on the original receipt. ## Scenario II: Landed costs added to an invoice With this scenario, you can enter an invoice from the landed cost supplier responsible for additional charges by using the [Purchase invoices (AP301000)](/visma-net-erp/help/supplier-ledger/supplier-ledger-windows/purchase-invoices-ap301000/) window. Such an invoice should be associated with the original purchase receipt or receipts. In this window, you can specify only landed costs with codes that allow application in the Suppliers workspace or both the Suppliers and Purchases workspaces. These costs, even though they are entered after the purchase, should also update inventory costs. Before you create an invoice for landed costs, make sure that the original purchase receipt and the inventory receipt are released. On release of such a landed cost invoice, inventory adjustments (for all stock items mentioned in the associated receipts) are generated to update the product costs. If an inventory adjustment was not generated automatically because some of the accounts were not specified, use the [Release landed costs (AP506500)](/visma-net-erp/help/supplier-ledger/supplier-ledger-windows/release-landed-costs-from-purchase-invoices-ap506500/) window to manually generate these adjustments for each invoice. ## Cost updating Upon release, an inventory adjustment updates the inventory costs of items differently depending on the valuation method of the item: + For stock items with the **FIFO** or **Specific** valuation method, the cost on the particular cost layer (created by the receipt) is updated as follows: + If the layer still has the original quantity, the cost of all items on the layer is updated, and the landed cost amount from the landed cost accrual account is transferred to the inventory account assigned to the item. + If the current quantity on the layer is less than the original quantity, the landed cost amount is moved from the landed cost accrual account to update the Landed cost variance account and the Inventory account in proportion with the sold and unsold quantities, respectively. (If you need to adjust the sales account on release of the inventory adjustment, you can use the same account for the COGS account and the landed cost variance account.) + For items with the **Average** valuation method, the landed cost amount from the landed cost accrual account is transferred to the inventory account assigned to the item and updates the average cost of the unit. At the moment of inventory adjustment release, if some of the units (listed on the purchase receipt) were sold, the landed cost amount updates both the landed cost variance account and the inventory account of the item proportionally to the unsold and sold quantities (as on the original purchase receipt), respectively. + For the **Standard cost** valuation method, the amount from the landed cost accrual account is moved to the landed cost variance account. [../so-landed-cost-transfers-con.html](/visma-net-erp/help/sales/process-transfer-orders/about-landed-costs-for-transfers/)