This article will guide you through the process of understanding, updating, and managing landed costs in Genie. By using this feature effectively, you can gain better insights into product costs over time and maintain accurate cost tracking for your inventory.
Understanding Landed Costs in Genie
Landed costs represent the total cost of getting a product to your location, including shipping, duties, and other associated fees. In Genie, the landed cost feature helps you track costs over time, ensuring accurate financial reporting and inventory valuation.
While this feature provides a detailed cost breakdown, it is important to note that landed costs in Genie currently cannot be directly added to purchase orders or as unit costs. However, future updates will allow for deeper integration with Shopify and purchase order functionality.
How Landed Costs are Calculated
Landed costs are dynamically calculated based on:
On-hand inventory: The cost of products already in stock.
Incoming shipments: Costs associated with products in transit.
Averaging methodology: When multiple shipments of the same product arrive at different costs, Genie calculates an average cost to provide a clear and consistent value.
For those of you more mathematically inclined, here is the formula we use:
Currently, landed costs in Genie are primarily used for tracking purposes. Users looking to apply these costs to financial records must manually enter them where needed.
Viewing Landed Costs in Your Inventory
To check landed costs for your products:
Navigate to the Inventory Table in Genie.
Locate the Landed Cost column.
Click on any value to see a detailed breakdown, including:
The shipment source of the landed cost.
The number of units received.
The receipt date and related shipment details.
This allows you to track how costs are assigned and ensure they align with your expectations.
Updating Landed Costs in Genie
There are two ways to update landed costs:
1. Manual Update from the Inventory Table
Click on the landed cost value next to any product variant.
Enter a new cost manually.
Click Save to confirm the update.
If needed, use the Revert button to undo changes and restore the previous cost.
2. Updating Landed Costs When Receiving a Shipment
Landed costs can also be updated when marking a shipment as received. This ensures that your product costs reflect real-world expenses at the time of inventory intake.
Step 1: Navigate to the Purchase Orders section and select the relevant purchase order. Make necessary adjustments to the order.
Step 2: Under the Shipping section, click Manage to review product and shipping costs.
Step 3: Mark the shipment as Received to activate the bulk update option for landed costs.
Step 4: Confirm the shipment details, select the receiving location, and click "Received." When you return to the inventory table, you'll see the updated landed cost.
Visibility of Shipment Data
To ensure accurate landed cost tracking, Genie provides a designated window within the landed cost selector where users can:
View all received shipments and their corresponding landed costs.
Check shipment dates and associated product costs.
Make necessary adjustments based on the latest cost data.
This feature simplifies cost management and helps you maintain a clear understanding of financials.
Future Enhancements to Landed Costs in Genie
While the current version of the landed cost feature is designed for tracking purposes, future updates will introduce additional functionality, including:
The ability to apply landed costs directly to purchase orders.
Automatic integration of landed costs into unit pricing.
Enhanced compatibility with Shopify, allowing for better synchronization across platforms.
These improvements will further streamline cost tracking and inventory valuation for businesses using Genie.
Managing landed costs effectively ensures accurate product pricing and profitability analysis. With Genie’s landed cost feature, you can track shipment costs, adjust values as needed, and anticipate upcoming improvements that will make this tool even more powerful.
Thank you for reading this Help Center article! Our goal is to help you become an inventory pro. If you have any other questions, feel free to reach out to our team, book a meeting, or explore more of our Help Center for more guides on navigating and configuring Genie.
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