landed cost means Product Price + Extra Price (customs, duties, taxes, insurance,..) and from this calculation we can see the actual stock valuation of product.
Lets teke example for this :
I did 2 purchases of the same product with different landed costs:
1st purchase:
Units: 50
Product cost per unit: 200
Landed costs: 400
2nd purchase:
Units 40
Product cost per unit: 300
Landed costs: 200
Now I need to get the Average Cost price of the product + landed costs:
[(50 x 200 + 400) + (40 x 300 + 200)] / (50 + 40)
10,400 + 12,200 / 90 = 251.111
In odoo Landed cost price configuration:
Configuration > Settings:
Go to Setting–>Configuration–>Warehouse
Tick “Generate accounting entries per stock movement” & “Calculate Landed Costs”
Go to Setting–>Configuration–>Purchases
Tick “Use Real Price or Average costing methods”
Configuration > Product
Start by creating products which indicates your landed costs such as freight charges, Insurance , Custom Duties etc. You can Create the product directly from warehouse. Go to Warehouse–>Configuration–>Landed Cost Type–>Click Create. Make sure that “can constitute landed cost” option is ticked , if not then tick that option. Choose Split Method according to your landed cost type. Make sure to also set “Inventory Valuation” under Accounting Tab.
Now, Calculate Landed Cost:
Go to Warehouse > Landed Cost > Landed Cost > Click Create. Select the pickings to which you want to calculate landed costs. Select the account journal in which to post the landed costs. Once you select the pickings, the product lines will be added automatically to Valuation Adjustment Block. In “Cost Lines” block , select the product indicates landed cost and you want to apply on the selected picking. Click “Compute”.Click “Validate” to confirm the landed costs attribution.
To see updated cost price of your stock :
Go to Inventory > Reports > Stock Valuation and in Inventory Value you can see the updated cost price.
Here, you can see original inventory value of your business.
Note: Landed cost type have different split methods,
Equal : Equally allocate the landed cost to products
By Quantity : Allocate cost based on the quantity of each products
By current cost : Allocate landed cost based on current cost of each products(after multiplying qty)
By weight : Allocate landed cost based on weight of each products
By Volume : Allocate landed cost based on value of each products
You can also check here how to calculate landed cost :
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