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​How do I apply and use Landed Costs in the Metro ERP?

In Metro, the Landed Costs feature in the Inventory module allows you to incorporate additional expenses (like shipping, customs duties, insurance, etc.) into the cost of products. This is especially important for accurate inventory valuation and real profitability analysis.

Here’s a step-by-step guide to using Landed Costs in Metro ERP:

1) Navigate to the Inventory Module.


Enable Landed Costs - Click Here

2) Configure Product Categories.

Go to Inventory > Configuration > Product Categories.


Set Product Category to a category with:

    • Inventory Valuation: Automated

    • Costing Method: FIFO or Average Cost

Click on the Save Button.



3) Configure Your Products.

Go to Inventory > Master Data > Products.


Choose a product (or create a new one).



    4) Create a Purchase Order

    Go to Purchases > Orders > Purchase Orders.


    Create and confirm a Purchase Order for products that will receive landed costs.


    5) Receive the products (Validate the incoming shipment in Inventory).

    6) Now, Click on Create and Confirmed Bill.


    7) Create a Landed Cost

    Go to Inventory > Operations > Landed Costs.

    8) Click Create.

      Enter all fields data:

      • Description (e.g., “Shipment from China”)
      • Vendor Bill (optional, if based on a vendor invoice)
      • Date
      • Transfers: Add the Incoming Shipment you validated earlier.
      • Under Cost Lines, add each landed cost item:
      • Product (like Freight, Insurance, Duty)
      • Split Method:
      • By Quantity – if cost depends on number of units
      • By Current Cost – if proportionally based on product cost
      • Equal – evenly across products
      • By Volume / By Weight – useful for freight costs
      • Amount

      9) Click on the Compute Button, Now, View the Valuation Adjustments data.

      10) Validate the Landed Cost

      • Once done, click Validate.


        The system will:

        • Adjust the inventory valuation of the related products.
        • Create journal entries (if accounting is enabled) for cost revaluation.

        11) Check Product Cost

        • Go to Inventory > Products.
        • Open the product and check the updated Cost field.

        It will now reflect the original purchase cost + proportion of the landed cost.



        To get more details on ​how do I apply and use Landed Costs in the Metro ERP, please do contact us at  support@metrogroup.solutions