In the dynamic world of business operations, understanding and managing inventory costs is a pivotal aspect of maintaining profitability and competitiveness. Oracle NetSuite, a leading cloud-based ERP system, offers robust solutions for managing landed costs – a critical component in calculating the total cost of inventory.

As an experienced partner, GURUS Solutions offers expert solutions in optimizing these processes for businesses across various industries. Continue reading to learn more about the intricacies of landed cost allocation, its significance, and a use case that demonstrates the functionality within NetSuite and its benefits for your company.

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What is NetSuite Landed Cost?

At its core, landed cost encompasses all expenses incurred in bringing goods to their final destination. This includes the cost of the product, transportation fees, customs duties, taxes, and any other charges that arise during the shipping process.

Understanding landed costs is not just about knowing these expenses; it’s about grasping the true cost of products. This insight is crucial for businesses to price their products accurately, manage profitability effectively, and make informed decisions about purchasing and shipping.

Why Landed Cost in NetSuite Matters

Accurately calculating landed costs provides a comprehensive view of a product’s total expenditure. This understanding is fundamental for businesses to:

Set Realistic Pricing

In the competitive marketplace, accurate pricing is not just a factor of profit margins but also market positioning. Without a comprehensive understanding of the total cost—including purchase price, shipping, duties, and taxes—businesses risk underpricing, which erodes profits, or overpricing, which can diminish market share.

Maintain Profitability

Proper allocation of landed costs ensures that all expenses are accounted for. This level of precision safeguards against the erosion of profits through unaccounted costs, ensuring financial health and sustainability.

Make Informed Decisions

The ability to view the full cost spectrum of products empowers decision-makers. Whether it's choosing between suppliers, deciding on shipping methods, or managing inventory levels, accurate cost data provides a foundation for strategic decision-making.

NetSuite’s functionality, particularly in instances with Advanced Receiving enabled, automates the inventory costing process at the item receipt level. NetSuite offers multiple approaches:

Manual Allocation

Users can manually attribute landed costs per category or source them from vendor bills.

Automated Templates

NetSuite allows using estimated landed cost templates for automation.


A notable limitation is that a vendor bill can only be allocated to one item receipt.

Use-Case: Enhancing NetSuite’s Landed Cost


Despite NetSuite’s robust features, challenges can arise, especially for companies dealing with high volumes of item receipts or those requiring precise cost allocation methods. Manual methods can be time-consuming and prone to errors, while estimated costing might not suffice for businesses operating on smaller margins.


Recognizing these challenges, GURUS Solutions, an award-winning NetSuite partner, developed a comprehensive solution that automates the allocation of landed costs from vendor bills to multiple item receipts.

Leveraging NetSuite’s native capabilities, our solution offers cost calculation based on weight, value, or quantity. This approach not only simplifies the process but also ensures precision in costing, allowing businesses to scale efficiently and reduce manual data entry or dependency on estimations.


  •  Efficiency in Operations
    The automation of landed cost allocation within NetSuite significantly streamlines operational processes, marking a departure from traditional, manual methods that are often time-consuming and error-prone.
  •  Precise Costing
    NetSuite Landed Cost solution enhances the accuracy of inventory cost management by allocating expenses directly related to the procurement and transportation of goods in a precise manner.
  •  Scalability
    One of the standout features of NetSuite Landed Cost functionality is its scalability. As businesses grow and transaction volumes increase, the need for a robust system that can handle this growth without a drop in performance becomes paramount.
  •  Industry Adaptability
    Whether it's wholesale distribution, manufacturing, retail, or any other sector that deals with the importation and distribution of goods, NetSuite Landed Cost functionality can be tailored to meet the unique needs and challenges of each industry.

Looking for other solutions?

As an award-winning NetSuite Alliance and Solution Partner, GURUS has been offering custom solutions to NetSuite users across North America. If you’re interested in learning more about our selection of custom solutions, visit our customizations page. Or, fill out the form below and speak to a solution specialist.

Why Choose GURUS to Enhance Your Landed Cost

Understanding and managing landed costs is a key element in maintaining a competitive edge in today's market. GURUS Solutions enhances NetSuite’s capabilities, providing a tailored, efficient, and precise method for landed cost allocation.

Whether your business is struggling with pricing strategies, looking to maintain profitability, or seeking to improve inventory costing visibility, our custom solution offers significant advantages.

Don’t let complex inventory costing hinder your business’s potential. Contact GURUS Solutions to start toward a streamlined, efficient, and accurate inventory management through landed costs with Oracle NetSuite.

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About Reda Zniber

With over 20 years of experience in consulting, management, business analysis, and finance, Réda is a seasoned expert specialized in Oracle NetSuite implementations.

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