which is more efficient - estimated landed cost method or actual landed cost method?

AI generated answer (using internal Slack threads):

****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ****** The efficiency of the Estimated Landed Cost (ELC) method versus the Actual Landed Cost (ALC) method in NetSuite largely depends on the specific needs and circumstances of your business. The ELC method allows you to estimate the additional costs associated with getting an inventory item into your warehouse. This can be beneficial for businesses that need to account for these costs before the actual costs are known, such as when setting sales prices or estimating profitability. However, this method may not be as accurate as the ALC method, as it is based on estimates rather than actual costs. On the other hand, the ALC method allows you to allocate the actual costs associated with getting an inventory item into your warehouse. This method is typically more accurate than the ELC method, as it is based on actual costs rather than estimates. However, this method may be more time-consuming and complex to implement, as it requires you to track and allocate actual costs. In terms of reporting, it seems like the native gross profit field is based on the purchase order rate. To get accurate reporting based on landed cost, you could set the cost estimate type on all items to average cost rather than purchase order rate. This would then bring in the average cost of the item (incorporating landed costs) when determining extended cost and thereby Gross Profit. For landed cost allocation, NetSuite allows allocation based on Units, weight, or cost. However, if you need to allocate based on volume, you might need to consider third-party integrations or manually calculate the landed cost and use the Landed Cost by Line feature on the item receipt. In terms of handling landed costs in NetSuite, you can use the Landed Costs subtab on Item Receipts/Bills to allocate freight/duties by quantity/weight/value. This auto-adjusts the inventory value via Journal Entry. For reporting, the Inventory Valuation report (which can be customized for Lot/Serial Numbers) shows breakdowns. There is no native per-lot total unit price display, but you can back into it via a saved search on GL Impact (Debit to Inventory - Rate = Landed). In conclusion, the choice between ELC and ALC depends on your business needs and the level of accuracy you require.