Landed cost & additional costs

Landed cost is what a unit of stock truly costs once freight and other charges are folded in. Ashicore can allocate additional costs across material lines by line value or ordered purchase quantity, so inventory is valued at its real delivered cost — not just the sticker price.

What “landed” means

The raw line cost is order quantity × unit cost. Landed cost adds each line’s share of the distributed additional costs, then divides by the stocking quantity to get the landed cost per stock unit — the number inventory, tracked lots, and recipes are valued at.

The formula

1

Material subtotal

The sum of (order quantity × unit cost) across all lines.

2

Distributed cost pools

Costs set to By value and By quantity are grouped separately. Not distributed costs are excluded.

3

Allocate each pool

For By value, a line gets its share of the material subtotal. For By quantity, it gets its share of the total ordered purchase units. If the order uses both, the two shares are added.

4

Landed per stock unit

(line subtotal + allocated) ÷ stocking quantity. This becomes the line’s landed cost per stock unit and, for lot-tracked items, the lot cost at receipt.

Choose an allocation method

Method	Hits inventory valuation?	Use it for
By value	yes — allocated to lines	Freight, customs, duties — anything that’s truly part of the unit’s delivered cost.
By quantity	yes — allocated to lines	Per-case, per-pallet, or similar costs that track how many purchase units you ordered rather than their price.
Not distributed	no — order total only	Deposits, one-off fees you want on the bill but not in stock cost.

Quantity means the purchase unit

By quantity uses the quantity shown on each purchase-order line. Twelve bags and eight bags split a cost 60% / 40%, even if the bags convert to different stocking quantities.

Worked example

PO-1045: two lines, $480 freight set by value, a $60 pallet deposit set not distributed.

Line	Subtotal	Share	+ Freight	Stock qty	Landed / unit
Huila Green	$3,720.00	55.56%	$266.67	828 kg	$4.81
Yirgacheffe Green	$2,976.00	44.44%	$213.33	480 kg	$6.64

The $60 deposit doesn't appear above

It’s not distributed, so it never touches landed cost. The order total is material subtotal + all additional costs = $6,696 + $480 + $60 = $7,236, but inventory is valued only on the $7,176 that landed.

Editing costs after receipt

Landed cost isn’t frozen at receipt. Change a distributed cost or a line price on a received order and Ashicore appends a revaluation that rebases on-hand tracked lots from this order to the new cost, and recomputes the item’s running cost.

Tracked lots revalue; untracked is deferred

Revaluation rebases lot-tracked items per location they sit in. Untracked, shared-bucket materials save the edit but aren’t rebased in v1.