What Landed Cost Means in Odoo
Landed cost is the total cost of acquiring inventory, including not just the purchase price but also extra costs such as:
- Freight / shipping
- Customs duties
- Insurance
- Port handling charges
- Other import/logistics fees
These extra costs are allocated to the stock valuation of the received products
How to Apply Landed Costs
Create a Landed Cost Product
Go to Inventory → Products → Products → New and:
- Name: e.g., International Freight
- Product Type: Service
- Purchase tab: tick Is a Landed Cost
-
Set a default Split Method (how the cost is shared across products) such as:
- Equal
- By Quantity
- By Current Cost
- By Weight
- By Volume
Example
| Item | Cost |
|---|---|
| Product cost | $1,000 |
| Freight | $200 |
| Custom duties | $100 |
| Insurance | $50 |
| Total landed cost | $1,350 |
After landed cost allocation, the inventory value of the product will include the extra $350 proportionately based on split method
How the Cost is Split
Odoo lets you choose how to distribute landed costs:
| Split Method | What it Means |
|---|---|
| Equal | Same amount to each unit |
| By Quantity | Split based on number of units |
| By Current Cost | More cost to higher-value items |
| By Weight | Based on weight |
| By Volume | Based on volume |
Why choose Kmgl Consulting for Odoo implementation?
KMGL combines process expertise, technical depth, and industry insight. That blend ensures automation delivers measurable business value, not just system changes.
How to manage Landed Cost in Trading Industry