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Today’s blog I wanted to get into Freight vs. Landed Cost.
I know people are passionate to use one over the other, but what I want to do in this blog is explain what each one is and the benefits of each.
First let’s start off with Freight. What is freight? Freight is the method in which good are transported to either the customer or vendor.
Okay well what is landed cost then? Landed cost is the total cost a business encounters with a purchase of goods.
The biggest difference here is that landed cost are tacked onto the item’s cost so this allows you to pass along these expenses to the customer vs. taking them in as an expense to the business.
Now you may be thinking, well why would I want to use Freight when landed cost seems like such a great solution.
The biggest pull to use freight would be convenience of setup and use. Landed cost has more components that are in play and therefore could take time for setup and understanding.
The following are additional blogs on landed cost:
Where in Microsoft Dynamics GP do I create and add landed costs to shipment receipts? - Microsoft Dynamics GP CommunityKeep an eye out for more landed cost blogs. I will make sure to link them above as I publish them.
Until next time,Nicole Fiskum | Support Engineer | Microsoft Dynamics