The quick answer
To allocate freight on a NetSuite inbound shipment, add a Freight row on Landed Cost, enter the charge, choose an allocation method, and select the intended shipment lines in Associated Items. Save, receive the goods, then check the generated item receipts and their GL Impact.
A correct charge total can still be allocated to the wrong lines. This example follows USD 300 of freight across two purchase orders, through receiving, to the resulting inventory postings. Screenshots come from a simulated walkthrough and use fictional person and operating-company names.
Before you start
Use an In Transit shipment whose goods have not yet been received. Your account needs the landed-cost feature, an active landed-cost category for freight with the intended expense or clearing account, eligible items, and permission to edit shipments and receive inventory. Check the receiving location and an open posting period.
The example uses two non-standard-cost inventory items with Track Landed Cost enabled: 12 Each of BR-482 and 8 Each of SV-716. Both lines are selected and fully received. The charge, purchase orders, receipts and subsidiary use USD, with an applicable exchange rate of 1.00. Different currencies, units, partial receipts or costing methods need their own reconciliation. Serialized and lot-numbered items can require inventory detail.
01. Confirm the shipment and quantities
Open shipment 7101, External Document Number HRC-2048, and confirm In Transit status.
Check the linked purchase orders and items: PO6401 / BR-482 and PO6402 / SV-716. Confirm the receiving location, units and quantities. Quantity Received is zero on both lines; Quantity Expected is 12 and 8. The 20 Each total is the denominator for this example's Quantity allocation.
02. Enter freight and select both lines
If Associated Items is empty, stop and check item eligibility, shipment lines, features and permissions. The available lines depend on the account and record.
Choose Edit, then open the Landed Cost subtab. Select Freight as the Cost Category and enter 300.00. Choose US Dollar, verify Exchange Rate 1.00, and enter the appropriate Effective Date. The example uses October 8, 2026; use the date required by your accounting policy.
Choose Quantity under Allocation Method. In Associated Items, select both PO6401 BR-482 and PO6402 SV-716. Check the purchase-order identities as well as the item names. Commit the row using Add Row.
03. Verify the saved charge
Save the shipment and reopen Landed Cost. Check the saved category, amount, currency, rate, date, allocation method and associated lines. You should have one USD 300 Freight row covering both intended lines.
Saving records the charge. It does not create a vendor bill, pay a supplier, or prove the receipt's inventory posting.
04. Receive the goods
Choose Receive. Verify the date, posting period, receiving locations, selected lines and Quantity to be Received. The example uses Reno Warehouse and receives all 12 Each and 8 Each. Don't copy these quantities if fewer goods arrived.
Choose Save. If a processing-status page appears, wait for completion and inspect its errors before proceeding. In the recorded example, processing reaches Complete, 100%, with 0 Errors. Open the processed records and follow the resulting item-receipt links. This example returns IR9201 and IR9202; inspect your actual results rather than assuming a fixed receipt count.
05. Reconcile the receipts and GL
Open each receipt and inspect its line's landed-cost breakdown. BR-482 receives USD 180 of freight: 300 × 12 ÷ 20. SV-716 receives USD 120: 300 × 8 ÷ 20. The two amounts add back to the original USD 300 charge.
Open GL Impact on each resulting receipt and verify its actual goods and freight postings. In the example, the first receipt has USD 540 of goods and a separate USD 180 freight allocation. In the recorded configuration, freight debits 1250 Inventory and credits 5260 Freight Clearing. The second receipt has USD 640 of goods and USD 120 of freight. Use the accounts configured for your items and cost category; these account numbers and names are example data.
06. Verify the unit cost
Return to the shipment. The recorded example shows Received. Check the status and received quantities in your account. The example shows Unit Landed Cost 15.00 on each line. That is the freight component: 300 ÷ 20. Total Unit Cost is 60.00 for BR-482 and 95.00 for SV-716, including their purchase prices of 45.00 and 80.00.
If the result differs, check the associated lines, item eligibility, quantities, units, exchange rate and category setup. For partial receipts, reconcile each receipt to the quantity actually received. Currency conversion and rounding can also affect line amounts. Don't assume a saved shipment charge remains editable after receipt; corrections can depend on the related receipt, period, ownership transfers and later transactions.
Common questions
Why is Associated Items empty?
Check that the intended lines belong to the shipment and that each item is eligible for landed cost, including its Track Landed Cost setting and costing method. Features, permissions and record status can also affect availability. An empty list needs investigation before you proceed; it is not evidence that the charge covers every line.
Is USD 15 the item's full inventory cost?
No. It is freight per unit in this full-receipt example. The purchase prices are USD 45 and USD 80, producing total unit costs of USD 60 and USD 95 after freight. Check the receipt and GL Impact against your account's costing setup.
Does entering freight create or pay a vendor bill?
No. This walkthrough records a charge on the inbound shipment. It does not create a vendor bill or make a payment. Handle the supplier bill and its reconciliation through your accounting process.
Can I use the same calculation for a partial receipt?
Don't assume the full-receipt calculation applies unchanged. Reconcile the freight assigned to each actual receipt with its received quantities and the remaining shipment. Different units, converted currencies and rounding can also affect the amounts. Partial receipt allocation is outside this walkthrough.
Can I change the charge after receiving?
Don't assume the shipment row remains editable. Review the related item receipt and your account's correction process first. Ownership transfers, closed periods, later costing activity, dependent transactions and permissions can restrict changes.