Landed cost management software that prevents silent margin loss
Margin erosion usually comes from delayed or incomplete cost capture. Landed cost software must close that gap quickly and audibly.
Allocation logic must match physical and commercial reality
Costs should allocate by value, quantity, weight, volume, or equal split depending on the charge type.
Using one default strategy for all costs distorts profitability at item level.
Cost recording should include estimate-to-actual transitions
Teams need visibility before final invoices arrive. Software must support estimated lines, then reconcile as actuals are posted.
This keeps deal decisions timely while preserving auditability.
FX normalization is non-negotiable
Every landed-cost line should retain original currency and converted base amount using value-date rates.
- Consistent margin card outputs
- Cross-deal comparability
- Cleaner month-end performance analysis
Frequently asked questions
Can landed costs be tracked before all invoices are received?
Yes. Estimated-to-actual workflows are essential for operational decision speed.
Why is allocation strategy important?
Incorrect allocation changes unit economics and can lead to wrong pricing or procurement decisions.
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