Landed Costs QuickBooks enterprise 2020 | The #1 Amazon and Quickbooks Integration.

Introduction

This tutorial provides a step-by-step guide on how to utilize the landed cost feature in QuickBooks Enterprise 2020, specifically for Amazon sellers. Landed costing helps you accurately reflect the total cost of products by including shipping and other associated costs. This method is crucial for calculating profit margins and managing inventory effectively.

Step 1: Enable Landed Cost Feature

1. Open QuickBooks Enterprise 2020.
2. Navigate to the Inventory section.
3. Find and select Calculate Landed Cost.
4. If prompted, enable the landed cost feature. You may need to set up a new asset account typically named "Shipping."

Step 2: Set Up a Separate Product for Landed Costs

1. Go to Preferences in QuickBooks.
2. Click on Items and Inventory.
3. Under Company Preferences, select Advanced.
4. Set up a new product linked to the shipping asset account.
5. Ensure this product is designated for tracking shipping costs associated with inventory.

Step 3: Create a Bill for Products

1. Under the Vendors menu, select Enter Bills.
2. Input the relevant details such as the vendor name and date.
3. Make sure to include the shipping costs in the bill entry.

Step 4: Allocate Landed Costs to Products

1. Open the bill you created.
2. Click on Calculate under the cost section.
3. Select the bill to allocate costs.
4. Choose how much of the total bill you want to allocate to the products.
5. Decide on the allocation method:
   • By Quantity: Distribute costs based on the number of items.
   • By Percentage: Allocate based on a percentage of each product.
   • Manual Entry: Enter specific amounts for each product.
6. Confirm the allocation and review the updated costs.

Step 5: Review and Post the Bill

1. After allocating costs, review the new costs displayed.
2. If satisfied, click on Post Bill.
3. You may need to set a new selling price if the cost has changed.
4. Save and close the bill entry.

Step 6: Monitor and Adjust Landed Costs

1. Regularly check your bills and the allocated landed costs.
2. If you need to remove or adjust a landed cost, open the bill and select Remove Landed Cost.
3. Review your inventory and ensure it accurately reflects the latest costs.

Conclusion

Using the landed cost feature in QuickBooks Enterprise 2020 can significantly enhance your inventory management and financial reporting. By accurately tracking all costs associated with your products, you ensure a clearer understanding of profit margins. Consider upgrading to the latest version of QuickBooks Enterprise if you are using an older version, as it may provide additional benefits and features.