> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Average Landed Cost per Unit, Microsoft Dynamics 365

> Mean landed cost across SKUs (purchase + duty + freight + handling). Rising trend indicates margin compression upstream. How to read it, why it matters, an...

**Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained)  •  **Category:** [Ecommerce Platform](/nerve-centre/connectors#connectors-by-type)

> Mean landed cost across SKUs (purchase + duty + freight + handling). Rising trend indicates margin compression upstream.

## At a glance

> Mean Item Unit Cost (purchase + Item Charges for duty/freight/handling). Rising trend = margin compression upstream.

|                    |                                                                                                                                                          |
| ------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **What it counts** | Weighted-average `Item.Unit Cost` across active SKUs received in window. Includes Item Charges (Freight, Duty, Handling) allocated via Purchase Invoice. |
| **Currency**       | Reporting Currency.                                                                                                                                      |
| **Time window**    | `30D vsP`                                                                                                                                                |
| **Alert trigger**  | `up >10% vsP`                                                                                                                                            |
| **Sentiment key**  | `landed_cost`                                                                                                                                            |
| **Roles**          | owner, finance, operations                                                                                                                               |

## Calculation

Calculated automatically from your Microsoft Dynamics 365 data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

US distributor on BC. Avg Unit Cost moved from $14.20 to $15.40 over 30D = +8.5%. Just below 10% alert threshold. Vendor cost rising on Asian-sourced electronics due to currency + shipping rates. Action: pricing review.

## Sibling cards merchants should reference together

| Card                                                                                                | Why pair                        |
| --------------------------------------------------------------------------------------------------- | ------------------------------- |
| [Landed Cost Variance](/nerve-centre/kpi-cards/microsoft-dynamics/landed-cost-variance-vs-standard) | Vs Standard Cost.               |
| [Margin Erosion Alerts](/nerve-centre/kpi-cards/microsoft-dynamics/margin-erosion-alerts)           | Cost-driven margin compression. |
| [Total COGS](/nerve-centre/kpi-cards/microsoft-dynamics/msd-cogs-total)                             | COGS feed.                      |

## Reconciling against the vendor's own dashboard

**Where to look in Business Central:**

> **Item List > Statistics > Unit Cost trend**
> **Reports > Inventory > Item Cost Trend**

**Why may differ:**

| Reason                       | Direction | Why                                              |
| ---------------------------- | --------- | ------------------------------------------------ |
| **Adjust Cost batch timing** | Small     | Pre-batch values approximate                     |
| **FX cadence on imports**    | Small     | Vendor invoice in USD; converted at posting rate |

**Cross-connector reconciliation:**

No commerce-side counterpart.

## Known limitations / merchant FAQs

**Item Charges allocation method?**
By value or quantity (BC's standard options). Configure on the Item Charge Assignment page.

**FIFO vs Average effect?**
FIFO uses layer-specific cost; Average smooths.

**Manufacturing variants?**
Standard Costing items show Standard Cost variance separately on [Landed Cost Variance](/nerve-centre/kpi-cards/microsoft-dynamics/landed-cost-variance-vs-standard).

***

### Tracked live in Vortex IQ Nerve Centre

*Average Landed Cost per Unit* is one of hundreds of KPI pulses Vortex IQ tracks across Microsoft Dynamics 365 and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English.

[Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.