NSC | Landed Cost > Variance Account GL Impact

Scenario

User is managing a standard cost inventory item in NetSuite. When they allocate landed costs (e.g., shipping, customs duties) to this item through item receipts or vendor bills, they observe that these costs are posted to the price variance GL account rather than being added to the inventory asset account. They are wondering why this happens and how they can adjust the process to capitalize these landed costs into the inventory asset value.

Solution

Why Landed Costs Are Charged to the Price Variance Account

In NetSuite, standard cost inventory items follow a specific costing methodology. By design:

• Landed costs are