Key Takeaways
- Landed cost captures the true acquisition cost by adding freight, duties, and handling to the purchase price.
- Without landed cost allocation, product margins are overstated and pricing decisions are based on incomplete data.
- Odoo allocates landed costs by quantity, weight, volume, or value depending on how additional costs correlate with products.
Allocation Methods for Landed Costs
| Method | Best For | Example |
|---|---|---|
| By Value | Customs duties (often percentage-based) | $10K duty on $100K shipment: allocated proportionally by product value |
| By Quantity | Per-unit handling or inspection fees | $500 inspection cost across 1,000 units = $0.50/unit |
| By Weight | Freight charges (weight-based pricing) | Shipping cost distributed by kg |
| By Volume | Container shipping (space-based) | Costs allocated by cubic meters occupied |
In practice, a single shipment may use multiple allocation methods: freight by weight, duties by value, and handling by quantity. Odoo supports applying different methods for each cost type within the same landed cost record.
Frequently Asked Questions
Need Help With Implementation?
Our team specializes in implementing the solutions described in this glossary.
Get in Touch