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Dean Hoover
October 7, 2024
Question

landed costs over multiple sites

  • October 7, 2024
  • 1 reply
  • 0 views

We are using landed costs with our inventoried items.  We have multiple inventory sites (2).  We sell the same items at both locations.  The freight on the products we buy is different depending on which inventory site the products are going to.  However, when looking at inventory valuations for each site, it looks that the landed costs on items are the same at both sites.  How can we have different landed costs for each site?

1 reply

JoesemM
JoesemM
October 8, 2024

Good day, Dean. Allow me to provide some information regarding landed cost for each site to ensure you can track your items correctly in QuickBooks.

 

You'll want to ensure that the items are categorized accordingly to the correct site when creating a bill. I have attached some screenshots for your reference on how to do this.

Then, recalculate the landed cost. In the Split by drop-down ensure that you split them accordingly so the landed cost will be added to the bill correctly.


The new selling price will be shown, you can update it based on the landed cost or just skip.

Once done, run the Inventory Valuation Detail report to verify the landed costs items and sites. For more details, open this link: Multiple Inventory Sites


In order to provide guidance on how QuickBooks calculates landed cost and tracking your inventories, refer to these resources:
 

If you require additional assistance about inventory management or any concerns with QuickBooks Desktop, feel free to leave a comment . I am always available and ready to help. Take good care.

D
Dean HooverAuthor
October 8, 2024

We are trying to track each items landed cost by site. When we receive a bill from the vendor the whole bill is always for one site or the other. I am understanding your instructions to show how to show separate landed cost to two different sites on the same bill. Since both of our sites use the same item numbers and the freight charges are different for each site the landed cost and average ends up being an average between both sites.

 

When we run a P&L for each site, we are seeing the landed cost for the product to be the same for each site when in fact it is not. This is causing one site to overstate profit and the other site to understate profit.

 

In order to fix this do we need to have each site to have their own item codes? Currently they are using the same item codes.

A
Anonymous
October 8, 2024

Nice to see you again posting your queries in the Community forum, Dean. I'll be glad to share more details about how the landed cost works for each site in QuickBooks Desktop, (QBDT).

 

Yes, creating separate items (sub-items or assemblies) for each site in QuickBooks Desktop is necessary to resolve the issue of the landed cost for products being the same for each site and causing profit discrepancies. Using the same item codes for multiple sites can cause inaccuracies in the profit and loss report.

 

Nevertheless, here's an article to help you understand how Landed cost works in QuickBooks Desktop Enterprise. It addresses common questions about Landed cost: Landed cost FAQs.

 

I'll be around if you have additional questions about managing your inventory in QBDT. Just leave them in the comments section below. Have a wonderful day.

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