BizAutomation’s Landed Cost feature automatically calculates the true cost of your inventory by rolling freight, insurance, and import duties directly into your item valuation. This provides product-based businesses with GAAP-compliant margins and real-time visibility into actual profitability.
For manufacturers and distributors, simply tracking the purchase price of goods is not enough; hidden supply chain costs can silently erode your profits. BizAutomation eliminates this blind spot by intelligently distributing all associated inbound expenses—like shipping, customs, and handling—across your received inventory items based on weight, quantity, or value. This ensures your balance sheet reflects the true asset value and your sales teams aren't quoting unprofitable deals. Stop guessing your margins and gain the precise operational intelligence needed to price competitively and scale profitably.
Landed cost is the total price of a product once it has arrived at the buyer's door. It includes the original cost of the item plus all associated inbound expenses like freight, insurance, tariffs, and customs duties. By knowing the true, fully loaded cost of every item in your warehouse, your sales team can set accurate pricing minimums.
By accurately rolling all acquisition costs into the inventory asset value on your balance sheet, rather than expensing them immediately, you ensure strict adherence to GAAP and accurate financial reporting. This prevents sales teams from accidentally selling products at a loss due to hidden supply chain expenses.
Direct answers on calculating the true cost of inventory acquisition.
Landed cost is the total price of a product once it has arrived at the buyer's door. It includes the original cost of the item plus all associated inbound expenses like freight, insurance, tariffs, and customs duties.
The system allows you to automatically distribute these overhead costs across your received inventory items using specific allocation methods, such as by item quantity, total weight, or total value, ensuring precise unit valuation.
Yes. By accurately rolling all acquisition costs into the inventory asset value on your balance sheet, rather than expensing them immediately, you ensure strict adherence to GAAP and accurate financial reporting.
By knowing the true, fully loaded cost of every item in your warehouse, your sales team can set accurate pricing minimums. This prevents them from accidentally selling products at a loss due to hidden supply chain expenses.