Import management and landed cost tracking

What are landed costs?

Landed costs are those costs that are typically in addition to purchase price and freight. Particularly for companies that import products from overseas, managing and tracking landed costs at a detailed level is important to obtain a more accurate view of product costs and sales margins.

Building landed costs within E21 ERP

With the E21 ERP system’s landed cost software functionality, manufacturers and distributors can define their own landed cost elements. These landed costs can be based on a fixed amount per unit or as a percentage of the item’s value and are tied to default GL accounts. The costs are then linked to specific products. In the event that a given item can be purchased from two different suppliers (possibly with different countries of origin), landed costs can be further defined at the vendor-product level or even at the level of departure port, arrival port, and container size, allowing for exceptionally granular landed cost tracking.