How to calculate the landed cost of inventory in QBO
Can you suggest how to add freight and brokerage expenses to the inventory items?
Normally, the landed cost of inventory will include the following types of direct costs:
a) actual product cost that you pay directly pay to the supplier for purchasing the items
b) freight that you pay for items to the vendor
c) brokerage fees that you pay to the vendor
Combine all three above items (product + freight + brokerage = landed cost).
In QBO, Inventory program is not that sophisticated. So there isn’t a way to be able to move these third-party costs over to the product cost to compute landed cost per item. It’s easier just expensing these other direct costs (freight and brokerage) since these costs may even come at later dates.