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By: Evin Davis

How to Integrate Landed Cost in Odoo 14

Functional Odoo 14 Manufacturing

The ultimate aim of any business organization is to attain profit whole fusion in a producing and reliable manner of operations. In the business operations, the shipping aspects for the purchase as well as the sales are to be managed efficiently. The operations may sometimes become costlier and the companies will have to charge it for the customer and the vendors or reach for a mutually beneficial settlement. Without charging for the products on the shipment the company will have to face a huge amount of money loss than profits being attained.

The user of landed cost terminology in business operations is the way to solve the issue. The landed cost is defined on the product being purchased where the shipment charge on the purchase is added to the purchase cost on the product. The Odoo platform which is the most widely used enterprise and resource planning software across the world helps the user to manage this problem. In the platform, the user can avail of the option to use landed cost which can be integrated with the cost price on the products available.

This blog will provide insight into 

What is landed costs in Odoo

How to configure landed cost options in Odoo 14

Landed cost in Odoo

The landed cost feature of Odoo 14 allows the users to reduce the unwanted losses arising in the company's operations. The landed cost is described on the purchased product which requires additional charges which are liable to be paid by the company or not to get a hand of the product. In most of the cease operations the cost is for the delivery or the specialized customization requirement needed on the product.

Implement landed cost in Odoo

The users of Odoo can implement their own customized landed costs in the operations of the platform in the company. Upon enabling the landed cost option available in the inventory module their can implements it in the platform upon enabling the option the user should also configure the journal associated with the indeed cost operations in the platform.


As the land cost option, as well as the journal entries, are configured the user can now function accordingly with the landed cost being used. However, initially, the user should configure the inventory valuation options of the platform. From the product category window select the respective one and the costing method under the inventory valuation should be set as Average cost.


The Odoo platform promotes three main default costing methods such as standard price, First-in first-out (FIFO) and Average cost (AVCO).


As the configuration options for the landed cost operations have been set up the user should create a serviceable product in the platform to be described as the landed cost. In the product creation window, the description details can be provided as per the user terminologies and the product type should be set as serviceable under the general information tab.


The product can be assigned as a landed cost service charge by enabling them is landed cost options under the purchase tab of the product description.


The split method for the landed cost operations can also be configured under the respective menu. Here the default split method can be assigned as equal, by quantity, by current cost, by weight by volume


The product landed cost has been described and to showcase how the operation works on the platform let's create a purchase order and confirm it. Under the purchase module select, the creative options available and assign the vendor details along with the product.  Under the product description, the respective landed coast created can be assigned and the cost can be configured as per the user's objective.


Once the purchase order has been saved and validated the user can confirm it to create a bill. While creating the bill on enabling the landed cost option for the respective product in the product description the option creates landed cost will be depicted.


On Selecting the option the associated landed cost will be assigned with the purchase order as well as for in the product cost description the platform too.


The integrated landed cost option of Odoo will enable the user of the platform to charge for the delivery operations as well as the associated changes while purchasing from the product which can be expensed from the customer. Furthermore, the operation will nullify the losses caused due to the delivery operations while purchasing the product since it can be obtained from the customer while sold.

Landed cost is the total price of a product once it has arrived at the buyers’ hands. This includes the transportation fee, duty, handling fees, etc. Learn How to Configure Landed Cost in Odoo

If you need any assistance in odoo, we are online, please chat with us.

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