> ## Documentation Index > Fetch the complete documentation index at: https://www.adorabl.info/llms.txt > Use this file to discover all available pages before exploring further. # Landed cost > Absorb freight, duties, handling, and insurance into inventory cost — estimate at receipt, true up when the carrier or broker invoice arrives. Landed cost adds the freight, duty, handling, insurance, and other charges you pay to get goods to your warehouse onto the inventory cost of those goods. Allocate an **estimate** against one or more posted receipts, then **true up** to the actual charge when the carrier or broker invoice arrives. Preview is always free of GL impact; only confirming posts. ## Prerequisites * Posted [receipts](https://www.adorabl.info/purchasing/purchase-orders-and-receipts.md#receive-goods) to allocate against. * **Landed cost accrual** and **Landed cost true-up** mapped under [System accounts](https://www.adorabl.info/books/setup/system-accounts.md#landed-cost-accounts). Posting is blocked until both are assigned. * [Landed cost components](https://www.adorabl.info/purchasing/setup/landed-cost-components.md) reviewed — Freight, Duty, Handling, Insurance, and Other are seeded with an allocation basis. * For weight- or volume-based allocation, **Landed cost factors** on the items (unit weight and volume). See [Items](https://www.adorabl.info/products/items.md#landed-cost-factors). ## How costs land | Item costing method | On-hand units | Units already sold | | - | - | - | | **Average (weighted)** | Absorbed into inventory and the running average | Posted to **Landed cost true-up** so prior cost of goods sold is never restated | | **Standard** | Posted to purchase price variance; the standard cost is not changed | Posted to purchase price variance | Every allocation posts a balanced journal entry dated today into the open period — adorabl never backdates into the receipt's period. The credit side is **Landed cost accrual** until the actual charge is billed. ## Allocation statuses The **Landed cost** list under **Purchasing** shows one row per receipt or allocation event: | Status | Meaning | | - | - | | **Open** | A posted receipt with no landed cost allocated yet, or an allocation still in draft | | **Awaiting actual** | An estimate is posted; the actual charge has not been entered | | **Partially allocated** | The receipt carries posted landed cost, but not every event on it has reached its actual | | **Fully allocated** | Every component has an actual and the true-up has posted | Search matches the document number, receipts, source document reference, and status. Use the **Status** column filter to work one queue at a time. ## Allocate an estimate **1. Start from the receipt** Open a posted receipt and click **Add landed cost** — or open **Purchasing → Landed cost** and click **New allocation**. The receipt you started from is pre-checked under **Receipts**. Tick additional posted receipts when one freight or broker invoice covers several deliveries. Filter by receipt number, supplier, or PO. **2. Enter the components** Under **Cost components (estimate)**, enter an amount for each charge you expect — Freight, Duty, Handling, Insurance, Other. Each component shows its allocation basis (for example, **Freight · by weight**). If the purchase order carried **Quoted freight**, **Quoted duty**, or other quotes, those amounts default here. Edit them freely. Record the carrier or broker reference under **Source document** so the allocation has an audit trail. **3. Check allocation factors** When a component allocates by **weight**, **Line allocation factors** lists each receipt line. **Line weight** is the item's unit weight times the quantity received, in the item's weight unit. A line with no unit weight, or a zero weight, shows **Unit weight required**. Enter **Unit weight** and the weight unit. **Also save as this item's unit weight** writes that weight back to the item. **Confirm & post estimate** stays off until every line has a weight. Volume-based components use the same panel with unit volume. Override a factor when the shipment differs from the catalog. Components allocated by **value** or **quantity** need no factors. **4. Preview** Click **Preview allocation**. The preview table shows how each component spreads across receipts and SKUs, with the item's costing method and the amount allocated. Nothing posts. **5. Confirm** Click **Confirm & post estimate**. adorabl posts the journal entry, assigns the `LC-` document number, and marks the receipt **Awaiting actual**. The receipt's **Landed costs** tab and relationship map show the new event. > [!TIP] > > Already have the carrier invoice? Enter the invoiced amounts as the estimate and confirm, then open the event and confirm the same amounts as actuals. The delta is zero, so the true-up posts nothing new and the receipt reads **Fully allocated**. ## Enter actuals and true up **1. Open the event** From the **Landed cost** list, open the **Awaiting actual** row — or open the receipt's **Landed costs** tab and click **Enter actuals**. **2. Enter the actual charge** Under **Cost components — estimate vs actual**, the estimate is read-only. Type the **Actual** for every component from the carrier or broker invoice — enter the estimate amount again for a component that did not change. The **Delta (posts)** column shows actual minus estimate. **3. Preview the true-up** Click **Preview true-up**. The table shows how the delta spreads across the same receipt lines — again with no GL impact. **4. Confirm** Click **Confirm & post actual**. The delta posts: on-hand units absorb their share, units already sold post to **Landed cost true-up**, and the accrual is adjusted to the actual charge. The event becomes **Fully allocated**. ## Where landed cost shows up * **Receipt → Landed costs tab** — every allocation event for that receipt with number, reference, date, status, and total. The receipt's **Relationships** map includes landed cost events as child nodes. * **Item → Costing tab** — a **Landed cost buildup** table listing each component applied to the item, the per-unit and total amounts, the source document, and whether it was an estimate or actual. See [Items](https://www.adorabl.info/products/items.md#costing-stock-items-only). * **Purchase order header** — **Quoted freight**, **Quoted duty**, **Quoted handling**, **Quoted insurance**, and **Quoted other** fields that seed estimates on later receipts. See [Purchase orders & receipts](https://www.adorabl.info/purchasing/purchase-orders-and-receipts.md). ## Example: Trail Ridge Outfitters Trail Ridge receives 200 daypacks on **RCPT-1188** and 100 rain covers on **RCPT-1189** from the same overseas shipment. The forwarder quoted \$1,200 freight and \$450 duty. 1. From **RCPT-1188**, the buyer clicks **Add landed cost**, ticks **RCPT-1189** as well, and sees **Freight** `1200.00` and **Duty** `450.00` defaulted from the PO quotes. 2. Freight allocates by weight. Daypacks weigh 1.1 lb each and rain covers 0.3 lb, so the preview puts about \$1,058 of freight on the daypacks and \$142 on the covers. Duty allocates by value. 3. **Confirm & post estimate** creates **LC-00007**, dated today, crediting **2150 · Landed cost accrual**. Both receipts show **Awaiting actual**. 4. The forwarder's invoice arrives at \$1,310 freight. The buyer opens **LC-00007**, enters the actual, previews the \$110 delta, and clicks **Confirm & post actual**. The 160 daypacks still on hand absorb their share into the running average; the 40 already sold post \$19.40 to **Landed cost true-up**. ## Related guides > **[Landed cost components](https://www.adorabl.info/purchasing/setup/landed-cost-components.md)** > > Allocation basis and accrual account per component. > **[Purchase orders & receipts](https://www.adorabl.info/purchasing/purchase-orders-and-receipts.md)** > > Quoted charges on the PO and the receipt's Landed costs tab. > **[Items](https://www.adorabl.info/products/items.md)** > > Landed cost factors and the costing buildup. > **[System accounts](https://www.adorabl.info/books/setup/system-accounts.md)** > > Map the accrual and true-up accounts before posting. ## Troubleshooting > **Confirm fails — landed cost account is not mapped** > > Assign **Landed cost accrual** and **Landed cost true-up** under [System accounts](https://www.adorabl.info/books/setup/system-accounts.md#landed-cost-accounts), then confirm again. Preview works without them; posting does not. > **A weight or volume factor is required** > > The component allocates by weight or volume and the item has no unit weight or volume. Enter the factor on the **Line allocation factors** panel for this allocation, or add **Landed cost factors** to the item so future allocations default. See [Items](https://www.adorabl.info/products/items.md#landed-cost-factors). > **The receipt I need is not in the picker** > > Only **posted** receipts can carry landed cost. Post the draft receipt first. > **The standard cost did not change after allocating** > > Expected. On **Standard** items, landed cost posts to purchase price variance and leaves the standard cost alone. Update the standard cost on the item if you want future postings to reflect the landed amount. > **The journal entry is dated today, not the receipt date** > > Expected. Landed cost always posts into the current open period so it never reopens a closed month. > **Confirm & post estimate did nothing the second time** > > An event posts once. If you clicked twice, the second click returns the already-posted event. Enter actuals from the event page instead of posting another estimate. This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.