Landed Cost Calculation in Odoo

ERP software like Odoo has been convenient to companies to revive the demand and supply fluctuations. One of many such applications behind the Odoo software is Landed cost calculation.   

Landed cost happens when a product land in a company’s inventory by spending various shipping charges, like shipping duties, customs, transportation charges, etc. apart from the products’ cost.

In addition to the product cost, the total cost of delivering a product to the buyer’s warehouse is known as the “landed cost of the product.” That indicates that this is the complete amount of the product after all necessary steps to obtain the product have been taken. It involves the incorporation of extra expenditures into items. You may use the capability in the Odoo platform to incorporate any additional expenses associated with purchases, including the purchase price, the cost of the item, shipping, insurance, customs taxes, service fees, currency conversions, transportation costs, and many other factors.   

Let’s see how Odoo help us to calculate products costs with Landed cost  


  • For the landed cost to work, we need to set these two values in settings:   
  1. > costing method to FIFO or Average cost.   

  2. >inventory valuation to automated.  

  • As the product receipt is validated, our inventory shows the products and their details.   
  • Now we create another product from the all-product category, called Transport. Transport is created as a ‘service’ product, and we input the landed cost specifications (e.g.: to split the bill equally by number, weight etc) in this form.   
  • From the purchase order of the item, select the product ‘transport’ and attach it along with the product bill.  After validating this landed cost form, the cost will be automatically updated and the inventory will show the increased valuation including the landed cost for each product.   

This is how you can add the landed cost in Odoo so that you have the exact valuation of your inventory and know how much the landed cost is for every product. 

Target Integration is an Odoo Partner and we have been helping businesses in the supply chain sector for over 14 years. Please contact our expert for Odoo implementation, Odoo integration, or Odoo training,   

See the related article on SAP Business One 

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