Learn NetSuite Landed Costs Fundamentals

This article is relevant if you are seeking an orientation to the meaning and relevance of NetSuite’s Landed Costs application.

Background

For a client seeking specialized NetSuite algorithms to automate the application of estimated Landed Costs driven from purchase orders, I had worked on an enhancement to our license-free Prolecto Landed Cost Applications accelerator bundle.

In preparation for the work, I had a meeting with one of our technical staff members. This staff member only had familiarity with the Landed Costs topic; thus to produce better outcomes, it is important for individuals producing software to become grounded and centered in the meaning and relevance of the topic they will be working within.

I have written about NetSuite Landed Costs in the past. Readers may be interested in these articles:

1. 2016: Offer: Superior NetSuite Landed Cost Practice with Late Vendor Bills
2. 2017: Track NetSuite Inventory In-Transit with Freight Containers and Automated Landed Costs
3. 2017: Global Logistics Practices for NetSuite Driven Distribution Companies
4. 2017: Finally: Capitalize NetSuite Inventory Costs with Item Consumption Landed Costs
5. 2021: Best Practice on Shipping Charge Handling in NetSuite Dropships
6. 2021: Learn How To Automatically Apply NetSuite Landed Costs from Purchased Freight

Addendum, related articles after this article:

1. 2021: Drive Automated Estimated NetSuite Landed Costs from Purchase Orders

During the meeting, the staff member asked “can you turn on the recording as I believe this is going to be valuable for me to listen to again?”.  As such, I recognized the value of the discussion for others that may seek a fundamental understanding of Landed Costs.

NetSuite Fundamental Landed Costs Concepts

During the talk, I brought forth the following concepts:

1. Property Rights: how to understand the meaning of the transfer of ownership to the model.
2. Inventory: what is inventory and why is it tracked on the balance sheet?
3. Capitalization: why consolidate expenses into an asset?
4. Cost Categories: what are typical types of costs that are capitalized into inventory?
5. Business Events: which events are tracked for measuring costs to capitalize?
6. Estimated Methods: why use estimates when tracking landed costs?
7. Header versus Line: differences between landed costs that are tracked at the item receipt header versus the line.

Watch and Listen to the NetSuite Landed Cost Talk (8:28)

Here is the video of our conversation.

Alternative, you can listen to the audio here:

Work with a Talented NetSuite Team

A key duty within our NetSuite Systems Integration Practice is to help grow our team’s competency. Indeed, we call ourselves a “Practice” because we must hone our craft to develop ourselves into experts on the NetSuite platform so that we can produce superior situations for our clients.

One of the great things about the NetSuite ERP system is that it is well modeled as a general business platform. Thus, the better one understands business-based coordination, the more meaningful the NetSuite architecture makes sense. Likewise, by being curious why NetSuite invented its database and processing logic in a particular way, the greater one will learn about business flows.

Perhaps you are the type of individual that wants to be working with a configuration of professionals that are dedicated to deepening their craft? Yet, you want to work with individuals who have a commitment to high standards of care. If so, then our firm represents an opportunity.

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