Mean landed cost across SKUs (purchase + duty + freight + handling). Rising trend indicates margin compression upstream.
At a glance
Mean landed cost across SKUs received in the period: purchase price + duty + freight + handling. Rising trend = upstream margin pressure.
| What it counts | AVG(ItemReceipt.LandedCost) across all Item Receipts in the period. NetSuite Landed Cost feature aggregates inbound freight, duty, customs, and handling allocated proportionally to received units. |
| Cost components | Purchase price (vendor invoice) + Duty/customs + Inbound freight + Handling + Storage-to-receipt + Insurance. Each is a separate Landed Cost Category in NetSuite. |
| Tax treatment | n/a (cost basis). |
| Currency | OneWorld: reporting currency at receipt-date FX. Vendor invoices commonly in USD/EUR/CNY. |
| Subsidiary scope | Respects dashboard filter. |
| Time window | 30D vsP |
| Alert trigger | up >10% vsP, sentiment landed_cost |
| Roles | owner, finance, operations |
| Only-when gate | Landed Cost feature enabled. Most NetSuite mid-market accounts have it. |
Calculation
Calculated automatically from your NetSuite data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.Worked example
A US wholesale apparel distributor importing from Asia. 30-day window 14 Mar 26 to 12 Apr 26.| Cost Component | This period (USD per unit) | Prior period | vsP |
|---|---|---|---|
| Purchase price | $11.20 | $10.80 | +3.7% |
| Inbound ocean freight | $2.40 | $1.90 | +26.3% |
| Duty (textile, US 16.5%) | $1.85 | $1.78 | +3.9% |
| Customs / brokerage | $0.45 | $0.42 | +7.1% |
| Handling | $0.30 | $0.28 | +7.1% |
| Avg Landed Cost (this card) | $16.20 | $15.18 | +6.7% |
- Total +6.7% vsP is below the 10% alert but trending. Within 2-3 months it could trip.
- Ocean freight +26% is the elephant. Container rates spiked during the period (port congestion, supplier surcharge). The Controller flags for the merchandising team; retail price needs to follow.
- Purchase price +3.7% reflects Asia supplier inflation. Sustainable; not a panic.
- Duty rate is structural (US textile 16.5%); the 3.9% reflects the underlying purchase-price increase.
- Standard cost variance check. If standard cost in NetSuite is 1 variance per unit posts to a Cost Variance account. Pair with Landed Cost Variance to see the dollar impact.
Sibling cards merchants should reference together
| Card | Why pair it with Landed Cost Avg |
|---|---|
| Landed Cost Variance | Dollar variance against standard cost. |
| Margin Erosion Alerts | Where rising landed cost hits margin first. |
| Gross Margin % | The downstream impact. |
| COGS Total | The flow side. |
| Total Inventory Value | New stock at higher cost lifts total. |
Reconciling against the vendor’s own dashboard
Where to look in NetSuite:Reports → Inventory → Item Receipt Detail with Landed Cost columns Setup → Accounting → Landed Cost Categories for component breakdownWhy our number may legitimately differ:
| Reason | Direction | Why |
|---|---|---|
| Allocation method | Either | NetSuite Landed Cost allocates by weight, volume, or cost. Different methods give different per-unit results. Card respects Item Receipt’s allocated value. |
| Subsequent adjustments | Either | Bills posted after Item Receipt (e.g. customs invoice arriving later) adjust the landed cost retroactively. Card respects current state. |
| FX cadence | Small | Receipt-date FX. |