Purchase Order - Landed Cost

This article will help you understand what Landed cost is and how it can be used while adding a new purchase order in Orderhive.

In simple words Landed cost is an essential way to represent the total cost of a product on its journey from the supplier’s door to your warehouse. It may include the price of goods, shipment costs, insurance fees, customs duties, and any other charges incurred along the way. In Orderhive it can be calculated by quantity, cost, percentage, and also can be input manually as well.

  • While adding a new PO in Orderhive click on the Landed Cost button and choose any options available from the drop-down menu.

  •  By selecting an option from the drop-down menu you can see the actual landed cost of the product while adding a new PO.


  • Let’s say if you select the first option as “Quantity” from the drop-down menu and add the shipping & handling charges then the total landed cost will be divided by the total number of quantities available in the PO.

  • If you select the “Cost” option from the drop-down menu then landed cost will be divided by product cost. Refer to the below screenshot for the same.

  • And by selecting the percentage option you’ll need to put the percentage number to each product and it can/cannot be equal to 100%

  • When you select the “Manual” option you can put any custom landed cost you want to add in PO.

  • Afterward, click the Raise button and generate the PO.

Note: At the moment we do not display landed cost on any documents such as PO templates or reports.


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