# How to Set Up and Use Landed Cost in QuickBooks Desktop Enterprise

> Set up landed cost in QuickBooks Desktop Enterprise, map freight and duty items, and split those bills across inventory by quantity, amount or percent.

- URL: https://logistify.ai/guides/quickbooks-desktop/landed-cost-enterprise/
- Section: QuickBooks Desktop Guides, Inventory
- Applies to: QuickBooks Desktop Enterprise
- Steps checked against: Intuit's QuickBooks Desktop help articles, updated August and September 2026
- Updated: 2026-10-19

**Short answer:** To use landed cost in QuickBooks Desktop Enterprise, set up a landed cost account on the Landed Cost tab, then allocate charges at Inventory > Calculate Landed Cost. The tab is under Edit > Preferences > Items & Inventory > Company Preferences > Advanced Inventory Settings. Intuit says you need an active Platinum or Diamond subscription with Advanced Inventory turned on. Map your freight and duty items to the account. Then add the inventory bill and the charge bills to the calculator, choose a split, and select Post to bill.

## Before you start

- You need an active QuickBooks Desktop Enterprise Platinum or Diamond subscription with Advanced Inventory, and Advanced Inventory has to be turned on.
- Setting it up needs the Admin or External Accountant role, or a role with the Landed Cost permission under Inventory.
- Set up landed cost before you enter the freight and duty bills. Bills entered before the landed cost account existed can't be selected later.
- Intuit says landed cost doesn't convert currencies. Bills in a second currency will leave the totals off.
- Ask your accountant whether the landed cost account should be an Other Current Asset or a Cost of Goods Sold account.

For what each subscription includes, see [QuickBooks Desktop Enterprise pricing](https://logistify.ai/compare/quickbooks-desktop-enterprise-pricing/) and [What Advanced Inventory adds in QuickBooks Desktop Enterprise](https://logistify.ai/guides/quickbooks-desktop/advanced-inventory-quickbooks-enterprise/).

## Step 1: Set up the landed cost account

1. Go to Edit > Preferences.
2. Select Items & Inventory, then the Company Preferences tab.
3. Select Advanced Inventory Settings, then the Landed Cost tab.
4. Select Setup landed cost account.
5. Create a new account, or choose an existing Other Current Asset or Cost of Goods Sold account.
6. Select Save & Continue.

## Step 2: Map your shipping and handling items

1. On the Landed Cost tab, open the Shipping & Handling items drop-down.
2. Choose the items you already use for freight, shipping and similar charges.
3. Select Save & Close.

Once an item is mapped to the landed cost account, you can't remove it. If you stop using it, make it inactive instead.

## Step 3: Create items for duties and other charges

1. Go to Lists > Item List.
2. Select Item, then New.
3. Set Type to Other Charge and give it a clear name, such as Customs/Duties.
4. If This item is used in assemblies or is a reimbursable charge is checked, set Expense Account to the landed cost account. Choose the Income Account you need.
5. If that box is clear, set Account to the landed cost account.
6. Select OK. Repeat for each kind of charge, such as insurance.

If a bill with one of these items can't be selected later, check that the item is mapped in Step 2.

## Step 4: Enter the inventory bill and the charge bills

1. Go to Vendors > Enter Bills and enter the supplier's bill for the inventory items.
2. Select New and enter a separate bill for the freight or duty, using the charge item from Step 2 or Step 3.
3. Enter one bill for each other charge, for example one from the freight carrier and one from the customs broker.

Bill entry itself is covered in [how to enter and pay bills](https://logistify.ai/guides/quickbooks-desktop/enter-and-pay-bills/). If the goods came in on an item receipt first, see [How to receive inventory against a purchase order](https://logistify.ai/guides/quickbooks-desktop/receive-inventory-against-purchase-order/).

## Step 5: Calculate and post the landed cost

1. Go to Inventory > Calculate Landed Cost.
2. In the Inventory and assembly items section, select Add bill. Choose the inventory bill, then select Add bill again.
3. In the Shipping and handling costs section, select Add bills. Choose the charge bills, then select Add bills again.
4. Open the Split by drop-down and choose quantity, amount, percentage or S&H cost.
5. Select Post to bill.
6. QuickBooks offers new selling prices based on your original markup and the landed cost. To change one, select the item, enter the price and select Update & proceed.
7. To keep current prices, select Skip & proceed. Select OK when you're done.

Intuit's release notes list an improved Landed Cost Calculator in the November 2024 update to QuickBooks Desktop Enterprise 24.0. Older releases may look different. Intuit's article also shows the price buttons as Update and Skip.

## If a bill won't show up in the calculator

- The inventory bill won't calculate: it has no inventory or assembly items, or it's open on someone's screen.
- A charge bill can't be selected: it was entered before the landed cost account was set up, or its item isn't mapped to that account.
- A charge bill also can't be selected while another user is working in it, or once it's allocated to another inventory bill.
- You use Enhanced Inventory Receiving, which keeps item receipts apart from bills: landed cost still works. Every bill shows in the shipping and handling list, and Intuit recommends following the Enhanced Inventory Receiving steps.
- The charges are in a foreign currency: landed cost doesn't convert currencies, so handle those bills with your accountant.

For how QuickBooks values the inventory these costs land in, see [average cost vs FIFO in QuickBooks Desktop](https://logistify.ai/guides/quickbooks-desktop/average-cost-vs-fifo/).

## Where QuickBooks Desktop leaves the work to you

- Someone has to enter every freight, duty and broker bill and match it to the right inventory bill.
- Charges that arrive weeks after the goods still need to be matched back to the original bill.
- You pick the split method each time you calculate.
- Selling prices only change if someone accepts or edits the suggested price.
- Foreign currency charges need handling outside the calculator.

## Frequently Asked Questions

### Which QuickBooks Desktop Enterprise subscription includes landed cost?

Intuit's setup article says you need an active Enterprise Platinum or Diamond subscription with Advanced Inventory, and Advanced Inventory turned on.

### How do I split freight across several items in QuickBooks Desktop?

In Inventory > Calculate Landed Cost, add the inventory bill and the freight bill. Then choose Split by quantity, amount, percentage or S&H cost and select Post to bill.

### Why can't I select my freight bill in Calculate Landed Cost?

Usually the bill was entered before the landed cost account was set up, its item isn't mapped, or it's already allocated. It's also blocked while another user has it open.

### Does landed cost work with bills in a foreign currency?

No. Intuit says landed cost doesn't convert currencies, so bills in another currency throw off the totals.

## Sources

- [Intuit: How to set up landed cost in QuickBooks Desktop Enterprise](https://quickbooks.intuit.com/learn-support/en-us/help-article/set-inventory-lists/set-landed-cost-quickbooks-enterprise-services/L64AiQG6p_US_en_US)
- [Intuit: Calculate landed costs in QuickBooks Desktop Enterprise](https://quickbooks.intuit.com/learn-support/en-us/help-article/set-inventory-lists/calculate-landed-cost-quickbooks-enterprise/L4D21nWRC_US_en_US)
- [Intuit: Landed cost FAQs](https://quickbooks.intuit.com/learn-support/en-us/help-article/set-inventory-lists/landed-cost-faqs/L2JMpbLbo_US_en_US)
- [Intuit: Manage Enhanced Inventory Receiving](https://quickbooks.intuit.com/learn-support/en-us/help-article/product-preferences/turn-enhanced-inventory-receiving-eir/L9VnCgFvY_US_en_US)
- [Intuit: What's new in QuickBooks Desktop 2024](https://quickbooks.intuit.com/learn-support/en-us/help-article/inventory-management/whats-new-quickbooks-desktop-2024/L381Krc4A_US_en_US)