--- title: Using Landed Cost. description: Landed Cost can be entered using the Purchase Order if the cost is from the same vendor, or by the Landed Cost function if from a separate vendor. --- [Skip to content](https://hub.acctivate.com/articles/how-to-use-landed-cost#main-content) ![Acctivate - A CAI Solution](https://hub.acctivate.com/hubfs/Images/Logos/acctivate-cai-logo-svg.svg) - [Knowledge Base](https://hub.acctivate.com/articles) Open main navigation Close main navigation - [Knowledge Base](https://hub.acctivate.com/articles) - [Support Resources / Create Ticket](https://acctivate.com/support) [Support Resources / Create Ticket](https://acctivate.com/support) Hello. How can we help you? - There are no suggestions because the search field is empty. 1. [Knowledge Base](https://hub.acctivate.com/articles?hsLang=en) 2. [Inventory](https://hub.acctivate.com/articles/inventory?hsLang=en) 3. [Landed Cost](https://hub.acctivate.com/articles/inventory?hsLang=en#landed-cost) April 10, 2025 # Using Landed Cost. ## Landed Cost can be entered using the Purchase Order if the cost is from the same vendor, or by the Landed Cost function if from a separate vendor. [Landed Cost](https://hub.acctivate.com/articles/learn/product/what-is-landed-cost?hsLang=en) can be entered using the Purchase Order if the cost is from the same vendor, or by the Landed Cost function if from a separate vendor. **Option A) Landed Cost from original PO vendor** Additional fees on the vendor bill for the original purchase order for the inventoried items can be converted to Landed Cost.  This approach will increase the Inventory value and ultimately the Cost of Goods Sold for the items on the PO, as opposed to a regular expense. 1. Open the **Purchase Order** window 2. Click **Invoice** on toolbar 3. Select **Other Amounts** tab 4. Enter **Description** for Landed Cost (e.g., Insurance) and **Amount** 5. Click the **Landed Cost** box Note: You will be prompted to save changes before displaying the Landed Cost pop-up window. 6. Follow the instructions below to **Allocate Landed Cost** amount 7. You can create the Purchase Invoice once the Landed Cost has been posted ![](https://hub.acctivate.com/hs-fs/hubfs/image-png-Feb-14-2025-05-53-26-0956-PM.png?width=1437&height=349&name=image-png-Feb-14-2025-05-53-26-0956-PM.png) **Option B) Landed Cost from another vendor** The Landed Cost function also allows you to load items from Inventory Receipts, Transfers and/or all Receipts for one or more Purchase Order(s). For example, you may receive a bill from one vendor for freight charges for a load that need to be allocated over multiple receipts and/or transfers. 1. Choose **Landed Cost** from the main **Inventory** menu 2. Click **New** on toolbar to create a new Landed Cost session 3. Select the **Vendor** and enter the **Landed Cost** amount from the bill 4. Click **Load Items** to select the associated inventory transactions to link the new Landed Cost.  Users can load items by **Receipt(s), Receipt(s) from PO, Inventory Transfer,** and **Inventory Assembly** sessions. ![](https://hub.acctivate.com/hs-fs/hubfs/image-png-Feb-14-2025-05-55-21-7345-PM.png?width=1434&height=851&name=image-png-Feb-14-2025-05-55-21-7345-PM.png)   1. Use the instructions below to **Allocate Landed Cost**. 2. You can create the **Vendor Bill** by checking the “Create Bill” box.  The bill will be created when the Landed Cost is posted. **Allocating Landed Cost** 1. Load the Landed Cost window using option A or B (above) 2. Click **Allocate By** to spread the Landed Cost amount by **Quantity, Value, Weight,** or **Volume**. 3. Adjust the **Allocation %** or **Amount** for each item.  The [Landed Cost Factor](https://hub.acctivate.com/articles/learn/product/what-is-the-landed-cost-factor?hsLang=en)can be used to change the way cost is allocated to a specific item. ![](https://hub.acctivate.com/hs-fs/hubfs/image-png-Feb-14-2025-05-56-24-8195-PM.png?width=1434&height=851&name=image-png-Feb-14-2025-05-56-24-8195-PM.png)   1. Click **Post** once you have balanced your Landed Cost entry and are ready to update inventory. 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