This article will provide you with a quick overview of how we calculate landed costs in Genie.
Landed costs calculations
Within the product, we have a tool tip that explains how we calculate landed costs. Below, I will break down that calculation and provide you with an example of how it is applied.
Currently, the calculation looks like this:
This may seem complicated but the math is very simple once you know what you are entering in each variable.
Landed cost = The previous avg. landed cost displayed for the product.
This does not mean the current landed cost for the product you have just received. This refers to the avg. landed cost that was displayed in this column before the shipment was received and the landed cost was updated.
On Hand = The current quantity located in your warehouses (the on hand metric)
Shipment landed cost = The landed cost for this product that appears in the shipment you have just received.
This will be the landed cost you have chosen to update after receiving the order. If you aren’t sure what that landed cost was, you can refer to the shipment you received, or by clicking the landed cost value, you can see it on the table (it will be on the top of the list)
Shipment Received Quantity/Received Quantity = The number of units you received for a given variant.
This will be another variable you can find from the landed cost table (See above).
All of these variables combine to provide you with the “Weighted” landed cost calculation you see on the inventory table. The reason it is weighted is that it accounts for all of the variants you have, not just the ones you have received.
Example:
Now, if we received a shipment where:
Shipment Landed Cost = 10
Shipment Received Quantity = 5
Landed Cost = 15
On Hand = 20
We should be able to plug these values in and see that the new landed cost is 14. This would be the new average displayed on your inventory table.
I hope this helps to resolve any lingering confusion around the landed cost value. As we iterate on this feature moving forward, you will be able to add the to POs, replace them in Shopify, and apply them to the greater cost value of your inventory. But for now, it is a great way to track and understand your costs.
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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