INVENTORY

Landed Costs

The landed cost of a product is the total price you charge the buyer after considering all the related expenses, which include the product’s cost, shipping cost, delivery charges, etc. This cost determines the original selling price of the product. Since the Landed Cost of a product fluctuates depending on the company policies and operations, two companies might not have the same Landed Cost for the same product.

You can activate ‘Landed Costs’ under the Valuation section in the Settings window.

Now, you will get the Landed Costs menu in the dropdown list of the Operations tab. Click on it to view the Landed Costs window.

Here, you can see all Landed Costs added to the module. The window displays all the details in a List view by default, which you can shift to a Kanban view by clicking on the corresponding icons in the window's top right corner. Use the Filters and Group By options to identify, sort, and categorize the records quickly. If you have a most used filter or criteria, add it to ‘Favorites.’

Before creating a new Landed Cost, go to ‘Product Categories’ from the Configuration tab. Select any category from the list that appears.

Set ‘Costing Method’ as ‘Standard Price,’ ‘First In First Out (FIFO),’ or ‘Average Cost (AVCO).’ Standard Price allows you to fix an estimated expense as the cost since it is difficult for the manufacturers to predict the actual cost in advance. If the goods produced first are also sold first, choose FIFO as the costing method. Average Costing is where the cost assigned to the products is the cost of all the materials required divided by the total number of items.

Now, go to the Products window and click on ‘Create’ to get its form view. Set ‘Product Type’ as ‘Service.’ to configure a service defining Landed Costs.

Activate the ‘Is a Landed Cost’ option under the Purchase tab to allocate costing methods to this service. In the Default Split Method field, you can indicate how you want to split the cost.

To create a new Landed Cost, click on the Create button in the Landed Costs window.

Specify the fields like Date, Transfers, Journal, Company, and Vendor Bill. The ‘Apply On’ attribute has two options – Transfers and Manufacturing Orders. It determines the domains in which you want to apply Landed Costs.

Under ‘Additional Costs,’ click on the Add a Line button. You can select the product from the dropdown list in the Product field. Add the details like Description, Account, Split Method (how Landed Costs are split), and Cost.

When you click ‘Compute,’ you can see different values under the Valuation Adjustments tab.

Here, you can see the info like Cost Line, Product (name), Quantity, Original Value, New value, and Additional Landed Cost. Click on ‘validate’ to post the Landed Cost.

Run Scheduler

You can effectively employ the Odoo schedulers to mechanize your firm’s purchasing and manufacturing transactions. The scheduler allows you to customize intervals to trigger these operations automatically or manually. To access this feature, click on ‘Run Scheduler’ from the Operations menu. You will get the following pop-up window.

Click on the Run Scheduler button to activate this operation.