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Landed Costs

Calculate costs incurred in getting the product to your shelf.

The Landed Cost module is an optional enhancement to the purchasing process of inventory items within the EBMS software. This module adjusts the purchase cost of an inventory item to reflect the true landed cost. The goal of this module is to record an accurate cost used to calculate profit reports and salesperson commissions.  

True Landed Costs

The total cost of a landed shipment may not equal the price listed on the purchase order because of freight, insurance, rebates, or other costs or adjustments. Landed Costs, or the "all in" costs of materials and inventory on the shelf, are very important for understanding true cost of product and margins.  Essentially, a landed cost is a product cost that is inclusive of not just the cost of the material that is paid to the vendor, but all of the costs incurred in getting it to your shelf. Typical landed costs include inbound ocean freight, duties and fees paid, internal processing, hauling charges, or even guaranteed rebates from a vendor.

Track Vendor & Purchasing History

Internal Handling and Receiving Costs

Some buyers even include their own internal material handling or receiving inspection charges to get inventory onto the shelf, or into a state where the inventory is ready for sale or use in a manufacturing process. Such costs can be considerable, especially if there are significant freight costs due to weight or ocean freight. 

Pay Bills


  • Add freight costs: This option is required if the freight costs are invoiced on another expense invoice.
  • Add other costs: Add costs such as insurance, handling, or any other miscellaneous costs to the original purchase cost.
  • Add handling or processing adjustments: Add any internal costs such as handling, packaging, or processing that does not include other inventory items.
  • Reduce cost based on guaranteed rebates: Reduce the purchase cost to reflect guaranteed rebates.

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