8Q Estimated Landed Cost
What the 8Q ELC Application Does
Gain complete visibility
over landed costs for accurate profit margins
Avoid surprises
by posting estimated costs when inventory is received
Eliminate guesswork
in calculating true product costs
8Q ELC Key Features
- Automated Landed Cost Estimation: Using customizable native NetSuite Landed Cost Templates and Cost Categories, it estimates charges like freight, duties, and other shipping costs to integrate into inventory valuation.
- GL Accounts and Landed Cost Categories Setup: Allows users to set specific GL accounts and create landed cost categories that align with their financial and operational needs.
- Item and Cost Tracking: Keeps item receipts, vendor bills, and landed costs cross-linked within NetSuite for seamless reference and auditing.
- Template-Based Allocation: Enables custom allocation methods (e.g., by quantity, weight, volume) and multiple landed cost templates for items to reflect specific shipping scenarios.
- Variance Reconciliation: Once actual landed cost bills are received, it compares estimates to actuals, letting users reconcile variances and adjust inventory or cost of goods sold (COGS) as necessary. Journal Entries are created for estimated costs and variances.
- Estimates/Quotes: Suggested Retail Price is calculated based on an editable Desired Retail % Margin. Estimated Landed Cost is taken into consideration. On Estimates, the Sales Rep can change the Retail % Margin and/or change the Landed Cost template, with the Retail Price shown being automatically adjusted.
- Tracks container location and status for both ship and air freight.
- Includes estimated and actual dates (and times for air freight) of events such as: Loaded, Left Port, Arrived at Destination, Offloaded. Purchase Orders' “Available” dates are updated when dates become actual. A real-time map shows the location of the freight.
- Shows container utilization by calculating fill percentages based on item dimensions and volume, allowing users to monitor and optimize space efficiency. If containers are underfilled, users can adjust their packing methods, minimizing costs associated with unused space.
Benefits for Clients
By automatically updating inventory values with estimated landed costs upon receipt, the application improves cost transparency and inventory valuation accuracy
Centralizes and links all records associated with a transaction, making it easier for finance teams to track expenses, reconcile accounts, and prepare for audits
Offers an efficient method to manage and reconcile differences between estimated and actual costs, with options to clear variances directly to COGS or revalue inventory, depending on business needs
Automates routine processes, such as estimating and allocating costs, to minimize manual data entry errors and the time required to handle landed cost accounting
With the ability to define custom landed cost categories, templates, and automation settings, the application can be tailored to fit each business’s unique import processes and cost allocation preferences
By calculating container fill percentages, the Container Tracking feature allows businesses to monitor space utilization. This visibility helps users reduce costs associated with shipping underfilled containers
Why are landed costs so crucial?
Think of them as the iceberg lurking beneath the water’s surface. The visible price tag is just the tip, while the hidden costs – freight, customs duties, taxes, and more – form the bulk of the iceberg. Ignoring them can lead to underpriced products, eroded profits, and inventory chaos.
Imagine this: you’ve sourced the perfect product overseas, negotiated a fantastic price, and eagerly await its arrival. But then, a surprise awaits at the doorstep – a hefty bill for hidden fees and charges you never saw coming. Landed costs, those sneaky expenses beyond the product price itself, can wreak havoc on your profit margins and budget.
Don’t let hidden costs sink your business. 8Quanta is your lifeboat to navigate the landed cost labyrinth with confidence. Contact us today and discover how we can help you streamline your operations, optimize your finances, and unlock a world of profitability.
Understanding Landed Costs
Ever felt like that rock-bottom price you snagged online somehow vanished by the time it reached your doorstep? The culprit might be lurking in the shadows of international shipping: landed costs. Don’t let this mystery charge leave you scrambling. Let’s shed some light on what it is and why it matters.
Imagine your dream gadget, imported from across the globe. The price tag seems sweet, but there’s more to the story than meets the eye. Landed cost is like the iceberg: the visible price is just the tip, while hidden beneath lie a multitude of expenses that inflate the true cost of getting your treasure to your door. Think freight charges, customs duties, import taxes, sneaky handling fees, and even insurance. Ouch!
These hidden costs can be the silent assassins of your profit margins and budget. But fear not, intrepid shopper! By understanding the components of landed cost, you can become a master negotiator, a budgeting ninja, and ultimately, a happier customer. So, stay tuned, as we delve deeper into the world of landed costs and equip you with the knowledge to conquer them!
The Challenges of Landed Cost Calculation
Conquering landed costs requires more than just basic arithmetic. It’s like navigating a labyrinth blindfolded, where every twist and turn holds the potential for costly missteps. Here’s where even the most seasoned business whizzes can get tripped up:
Imagine juggling a dozen ping pong balls, each representing a different cost factor - freight, insurance, customs fees, fluctuating exchange rates...the list goes on. Manually tracking them all is a recipe for errors and omissions. One missed ball (cost) and your entire landed cost calculation goes wonky, leading to underpriced products, eroded profits, and inventory chaos
The foreign exchange market is a fickle beast, its fluctuations adding another layer of complexity. Imagine your meticulously calculated landed cost suddenly morphing into something unrecognizable thanks to a currency swing. Pricing strategies become muddled, profitability takes a nosedive, and forecasting becomes a dart-throwing exercise
Some sneaky costs lurk in the shadows, waiting to pounce. Think storage fees, inland transportation, and obscure handling charges. Without proper visibility into these hidden expenses, businesses end up footing the bill for surprises, throwing their budgets and inventory management into disarray
The stakes are high, my friend. Inaccuracies in landed cost calculations can lead to a domino effect of negative consequences. Pricing becomes inaccurate, profitability suffers, and inventory management becomes a guessing game. But fear not, for in the next chapter, we’ll unveil the secret weapons to conquer the landed cost labyrinth and emerge victorious (and profitable!).
If your business is involved in international trade, the cost of freight and duty on items purchased overseas can be quite high.
In developing a fully realized product cost to maintain profit margins, you must capture every cost of doing business associated with each product.
Why 8Q ELC is Right for Your Business
Optimize your cost-tracking processes, increase inventory efficiency, and maximize profits with a single solution. Built natively on NetSuite, 8Q ELC+ integrates effortlessly into your dashboard and empowers you to manage landed costs with confidence. With a partner like 8Quanta, you gain access to innovative technology, complete customization, and dedicated support every step of the way.
Still have questions? Our friendly team is here to help. Contact us today and let's discuss how 8Quanta can work for you.
Ready to Conquer Your Business Labyrinth?
Ready to unlock the full potential of your landed costs? — Schedule your demo and start your journey towards enhanced profitability and strategic agility.
- Simplify your landed cost calculations. Eliminate manual errors and gain real-time insights with our automated platform.
- Uncover hidden cost traps. Identify opportunities for negotiation, optimized sourcing, and even modal shifts.
- Make strategic decisions with confidence. Base your pricing, sourcing, and supply chain strategies on accurate data.
See the power of 8Quanta in action!
For People Who Have Never Seen 8Q ELC
8Q ELC is a NetSuite app that helps businesses calculate and manage Estimated Landed Costs (ELC)
Landed cost includes all expenses (e.g., freight, customs duties) associated with importing goods, ensuring accurate inventory valuation and pricing.
It cross-links item receipts, vendor bills, and landed costs, providing seamless auditing and reconciliation.
The app includes setup tools for creating GL accounts, cost categories, and templates, tailored to your business needs.
It compares estimated costs to actual bills, providing options to reconcile variances through inventory adjustments or COGS.
Yes, it supports quantity, weight, volume, and other allocation methods, including container-based calculations.
Any business dealing with imports and logistics, especially those requiring accurate landed cost management.
Yes, it operates entirely within NetSuite, complementing and enhancing its native
functionalities.
For New Users of 8Q ELC
Go to Setup -> Custom -> 8Q Estimated landed cost. Click Edit to make any changes in setup.
Use landed cost templates assigned to items, which calculate costs at item receipt based on predefined categories.
Yes, you can create custom categories like freight, duties, and tariffs, mapped to specific GL accounts.
8Q ELC lets you reconcile these variances by adjusting inventory or COGS, with detailed records for auditing. You can find “Reconcile” button on Vendor bills.
Yes, you can adjust templates directly from vendor bills, incorporating real-world data to improve future estimates.
8Q ELC centralizes transaction records, providing insights into cost components, container usage, and reconciliations.
It ensures required data, such as item dimensions, is entered before saving transactions and highlights discrepancies for review.
8Q ELC offers optional automations, like auto-approving journal entries or always reconciling variances to COGS.
Extra charges can be added to vendor bills with appropriate cost categories, ensuring comprehensive cost tracking.
Initial setup includes training, and the intuitive design allows users to quickly become proficient in using the app.
