Landed Cost- Advanced Inventory- QuickBooks Desktop Enterprise 2023/2024 in Somali Language.

Introduction

This tutorial provides a step-by-step guide to understanding and utilizing the Landed Cost feature in QuickBooks Desktop Enterprise 2023/2024. This feature is essential for businesses that manage inventory and want to accurately track the total cost of products, including shipping and handling. By following these steps, you'll learn how to effectively implement and manage landed costs in your inventory system.

Step 1: Accessing Advanced Inventory Settings

• Open QuickBooks Desktop Enterprise.
• Navigate to the "Edit" menu.
• Select "Preferences" from the dropdown.
• In the Preferences window, locate "Items & Inventory."
• Click on the "Advanced Inventory Settings" button.
• Enable "Track landed costs" by checking the box.

Practical Tip: Ensure that you have the necessary permissions to change these settings, as it may be restricted based on user roles.

Step 2: Setting Up Landed Cost Accounts

• Go to the "Lists" menu and select "Chart of Accounts."
• Click on "Account" at the bottom and choose "New."
• Select "Expense" as the account type.
• Name the account (e.g., "Landed Costs") and provide a description if needed.
• Save the new account.

Common Pitfall: Avoid creating multiple accounts for landed costs, as this can lead to confusion in financial reporting.

Step 3: Adding Landed Costs to Inventory Items

• Navigate to the "Lists" menu and select "Item List."
• Choose the inventory item you want to edit and click "Edit."
• In the item editing window, find the "Landed Cost" section.
• Enter the landed cost amount and select the appropriate account from the dropdown menu.
• Save your changes.

Real-World Application: This step ensures that when you purchase inventory, all associated costs are accurately recorded, providing a true picture of your expenses.

Step 4: Recording a Purchase Order with Landed Costs

• Go to the "Vendors" menu and select "Create Purchase Orders."
• Select the vendor and add the inventory items you are ordering.
• In the "Landed Cost" field, enter the total landed cost for the order.
• Save the purchase order.

Practical Tip: Always double-check the landed cost calculations to avoid discrepancies in your financial records.

Step 5: Reviewing Landed Costs in Reports

• Navigate to the "Reports" menu.
• Select "Inventory" and then "Inventory Valuation Summary."
• Customize the report to include "Landed Costs" in the filters.
• Generate the report to view the total landed costs associated with your inventory.

Common Pitfall: Ensure that the report settings are correctly configured to include all relevant data to avoid missing important insights.

Conclusion

Understanding and implementing the Landed Cost feature in QuickBooks Desktop Enterprise can significantly enhance your inventory management and financial accuracy. By following these steps, you can ensure that all costs associated with your inventory are accounted for, leading to better decision-making and financial health for your business. As a next step, consider exploring additional inventory management features in QuickBooks to further optimize your operations.