Intelligent Inventory Valuation at Scale
GIR Software Services has been a strategic technology partner to a global inventory-driven organization, helping the team accurately track landed costs across inbound shipments and link them to purchase orders inside NetSuite. Landed costs fluctuate based on logistics and shipping variables, arrive incrementally as goods move through the supply chain, and must be reflected in inventory that spans both on-hand and in-transit quantities across multiple locations, a combination that traditional cost accounting struggles to keep up with.
Using NetSuite’s MCP (Model Context Protocol) connection with Claude AI, GIR designed and deployed an intelligent reporting solution that aggregates landed costs from inbound shipments, calculates per-unit valuations, and presents inventory position with transaction-level clarity, tracking thousands of SKUs across hundreds of shipment lines and multi-million dollar inventory valuation with full cost transparency.
The Challenge: Landed Costs That Arrive in Waves
Traditional inventory accounting struggles when costs arrive in stages rather than all at once:
- Purchase orders are created with estimated costs, but actual landed costs, including shipping, logistics, duties, and other variable charges, are unknown until shipment time.
- Inbound shipments move through several stages (in transit, partially received, fully received, closed), each capturing cost at a different point.
- Multiple inbound shipments may reference the same purchase order, and vice versa, requiring complex aggregation logic to avoid double-counting or missing costs.
- On-hand inventory valuation must account for average cost where available, or fall back to purchase price per unit, then layer in per-unit landed cost components.
- Traditional methods pulled data from purchase order line items instead of the authoritative source: inbound shipments, where actual costs reside.
Real-world impact
A single purchase order can be fulfilled across several inbound shipments, each capturing a different slice of freight, duty, and logistics cost as goods move through customs and receiving. Without a purpose-built reporting approach, it becomes easy to double-count costs across shipments, miss cost components entirely, or end up valuing inventory against outdated PO estimates rather than what actually landed.
The Challenge: Landed Costs That Arrive in Waves
Traditional inventory accounting struggles when costs arrive in stages rather than all at once:
- Purchase orders are created with estimated costs, but actual landed costs, including shipping, logistics, duties, and other variable charges, are unknown until shipment time.
- Inbound shipments move through several stages (in transit, partially received, fully received, closed), each capturing cost at a different point.
- Multiple inbound shipments may reference the same purchase order, and vice versa, requiring complex aggregation logic to avoid double-counting or missing costs.
- On-hand inventory valuation must account for average cost where available, or fall back to purchase price per unit, then layer in per-unit landed cost components.
- Traditional methods pulled data from purchase order line items instead of the authoritative source: inbound shipments, where actual costs reside.
Real-world impact
A single purchase order can be fulfilled across several inbound shipments, each capturing a different slice of freight, duty, and logistics cost as goods move through customs and receiving. Without a purpose-built reporting approach, it becomes easy to double-count costs across shipments, miss cost components entirely, or end up valuing inventory against outdated PO estimates rather than what actually landed.
The Solution: NetSuite Plus Claude MCP
GIR used Claude’s MCP integration with NetSuite to design a query-driven approach that reasons through the complex, linked-record schema behind landed cost accounting.
Schema Analysis
Claude analyzed NetSuite’s Inbound Shipment, Purchase Order, Item Receipt, and Item record types to map relationships and identify the authoritative source for each data element, eliminating confusion about where landed costs truly live and how to safely aggregate them.
Iterative Query Design
Claude generated SuiteQL queries that:
- Aggregated landed cost line items from inbound shipments, not purchase orders, and calculated per-unit costs across all cost categories without double-counting.
- Linked each shipment to its associated purchase order, handling one-to-one and one-to-many relationships with join logic that ensured accuracy.
- Pulled current on-hand inventory quantities and location status (in transit, partially received, received, closed) to distinguish where product actually was in the supply chain.
- Calculated inventory value using average cost where available, falling back to PO price, then layering in per-unit landed costs.
Reporting Framework
The resulting report was delivered as a structured data set containing item SKU, purchase order number, inbound shipment ID, shipment status, on-hand quantities by location, received quantities, total landed cost, and cost breakdowns by category. This granular structure enabled multiple views and analyses without re-querying the source system.
The Solution: NetSuite Plus Claude MCP
GIR used Claude’s MCP integration with NetSuite to design a query-driven approach that reasons through the complex, linked-record schema behind landed cost accounting.
Schema Analysis
Claude analyzed NetSuite’s Inbound Shipment, Purchase Order, Item Receipt, and Item record types to map relationships and identify the authoritative source for each data element, eliminating confusion about where landed costs truly live and how to safely aggregate them.
Iterative Query Design
Claude generated SuiteQL queries that:
- Aggregated landed cost line items from inbound shipments, not purchase orders, and calculated per-unit costs across all cost categories without double-counting.
- Linked each shipment to its associated purchase order, handling one-to-one and one-to-many relationships with join logic that ensured accuracy.
- Pulled current on-hand inventory quantities and location status (in transit, partially received, received, closed) to distinguish where product actually was in the supply chain.
- Calculated inventory value using average cost where available, falling back to PO price, then layering in per-unit landed costs.
Reporting Framework
The resulting report was delivered as a structured data set containing item SKU, purchase order number, inbound shipment ID, shipment status, on-hand quantities by location, received quantities, total landed cost, and cost breakdowns by category. This granular structure enabled multiple views and analyses without re-querying the source system.
How the Reporting Solution Works
The report is built around a repeatable, query-driven process:
| 1 | Map the schema. Claude analyzes NetSuite’s Inbound Shipment, Purchase Order, Item Receipt, and Item record types to identify the authoritative source for every data element before any query is written. |
| 2 | Aggregate landed costs by shipment. Landed cost line items are pulled from inbound shipments, the true source of actual cost, and grouped so every cost category is counted exactly once. |
| 3 | Link shipments to purchase orders. Join logic connects each shipment to its associated PO, correctly handling both one-to-one and one-to-many relationships. |
| 4 | Pull inventory position and status. The query retrieves on-hand quantities by location alongside shipment status (in transit, partially received, received, closed) for full supply chain visibility. |
| 5 | Calculate per-unit value. Inventory value is calculated using average cost where available, with a fallback to PO price, then layered with per-unit landed cost components. |
| 6 | Deliver a structured, drillable report. Results are organized as item, purchase order, shipment, and cost breakdown, so the data can be viewed and re-sliced without re-querying the source system. |
How the Reporting Solution Works
The report is built around a repeatable, query-driven process:
| 1 | Map the schema. Claude analyzes NetSuite’s Inbound Shipment, Purchase Order, Item Receipt, and Item record types to identify the authoritative source for every data element before any query is written. |
| 2 | Aggregate landed costs by shipment. Landed cost line items are pulled from inbound shipments, the true source of actual cost, and grouped so every cost category is counted exactly once. |
| 3 | Link shipments to purchase orders. Join logic connects each shipment to its associated PO, correctly handling both one-to-one and one-to-many relationships. |
| 4 | Pull inventory position and status. The query retrieves on-hand quantities by location alongside shipment status (in transit, partially received, received, closed) for full supply chain visibility. |
| 5 | Calculate per-unit value. Inventory value is calculated using average cost where available, with a fallback to PO price, then layered with per-unit landed cost components. |
| 6 | Deliver a structured, drillable report. Results are organized as item, purchase order, shipment, and cost breakdown, so the data can be viewed and re-sliced without re-querying the source system. |
Built to Evolve: Responding to Business Feedback
Successful reporting is never final. After initial deployment, the business team reviewed the data and requested structural refinements to better fit their analysis workflow, moving from an inbound-shipment-first structure with a PO breakdown to an item-first structure with a PO breakdown and consolidated location data. That pivot required reorganizing aggregation to roll up on-hand quantities across all locations per SKU, adjusting cost-per-unit logic so every landed cost category is expressed per single unit with proper fallback handling, and re-pivoting the aggregation axes without losing granularity at the shipment line level.
Why this matters
Because the underlying data model is explicit and query-driven, restructuring the report layout and aggregation logic was a matter of adjusting join and group-by logic rather than rebuilding the report from scratch.
Built to Evolve: Responding to Business Feedback
Successful reporting is never final. After initial deployment, the business team reviewed the data and requested structural refinements to better fit their analysis workflow, moving from an inbound-shipment-first structure with a PO breakdown to an item-first structure with a PO breakdown and consolidated location data. That pivot required reorganizing aggregation to roll up on-hand quantities across all locations per SKU, adjusting cost-per-unit logic so every landed cost category is expressed per single unit with proper fallback handling, and re-pivoting the aggregation axes without losing granularity at the shipment line level.
Why this matters
Because the underlying data model is explicit and query-driven, restructuring the report layout and aggregation logic was a matter of adjusting join and group-by logic rather than rebuilding the report from scratch.
Key Features
- Complex multi-table joins across Inbound Shipment, PO, Item, Item Receipt, and Ledger, validated against schema to prevent data loss.
- Landed cost aggregation grouped by shipment line, then rolled up per item with distinct cost-type sums to avoid double-counting.
- Fallback costing logic: conditional expressions use average cost where it exists, otherwise PO price, with correct precedence and null-handling.
- Status-aware filtering on shipment status (in transit, received, and more), with separate on-hand vs. incoming quantity columns.
- Query-driven architecture that supports reorganizing from shipment-centric to item-centric reporting at the metadata level, without re-extracting data.
- Thousands of SKUs tracked with full cost visibility.
- Hundreds of inbound shipment lines aggregated and linked to purchase orders without duplication.
- Multi-million dollar inventory valuation with transparent cost-per-unit breakdown.
- Location-aware inventory status (in transit vs. received) for supply chain visibility.
Key Features
- Complex multi-table joins across Inbound Shipment, PO, Item, Item Receipt, and Ledger, validated against schema to prevent data loss.
- Landed cost aggregation grouped by shipment line, then rolled up per item with distinct cost-type sums to avoid double-counting.
- Fallback costing logic: conditional expressions use average cost where it exists, otherwise PO price, with correct precedence and null-handling.
- Status-aware filtering on shipment status (in transit, received, and more), with separate on-hand vs. incoming quantity columns.
- Query-driven architecture that supports reorganizing from shipment-centric to item-centric reporting at the metadata level, without re-extracting data.
- Thousands of SKUs tracked with full cost visibility.
- Hundreds of inbound shipment lines aggregated and linked to purchase orders without duplication.
- Multi-million dollar inventory valuation with transparent cost-per-unit breakdown.
- Location-aware inventory status (in transit vs. received) for supply chain visibility.
Business Benefits: Before vs. After
| Before | After |
|---|---|
| Landed costs estimated from PO data, prone to discrepancies | Landed costs derived from authoritative shipment data, fully traceable |
| Risk of double-counting or missing costs across multiple shipments per PO | Aggregation logic ensures every cost category is counted exactly once |
| No clear view of in-transit vs. received inventory | Status-aware reporting distinguishes in-transit from received in real time |
| Structural changes required rebuilding reports from scratch | Report structure adjusts through query reorganization, no redesign needed |
| Difficult to audit cost components back to their source | Item, PO, shipment, and cost breakdown structure supports full drill-down |
| Inventory valuation relied on outdated PO-level estimates | Valuation reflects average cost with PO price fallback, layered with actual landed costs |
Business Benefits: Before vs. After
| Before | After |
|---|---|
| Landed costs estimated from PO data, prone to discrepancies | Landed costs derived from authoritative shipment data, fully traceable |
| Risk of double-counting or missing costs across multiple shipments per PO | Aggregation logic ensures every cost category is counted exactly once |
| No clear view of in-transit vs. received inventory | Status-aware reporting distinguishes in-transit from received in real time |
| Structural changes required rebuilding reports from scratch | Report structure adjusts through query reorganization, no redesign needed |
| Difficult to audit cost components back to their source | Item, PO, shipment, and cost breakdown structure supports full drill-down |
| Inventory valuation relied on outdated PO-level estimates | Valuation reflects average cost with PO price fallback, layered with actual landed costs |
Outcome
The landed cost reporting solution replaced fragmented, PO-level cost estimates with a single, authoritative view of inventory value sourced directly from inbound shipments.
- Accuracy: landed costs now derive from authoritative shipment data, eliminating discrepancies between PO-level estimates and actual landed values, with every cost component tagged by type and traced to its source shipment.
- Auditability: the structured Item to PO to Shipment to Cost Breakdown format makes it easy to drill down and verify any valuation, so finance and operations teams can trace inventory value back to its component shipments and cost categories.
- Agility: business-driven changes to report structure are handled through query reorganization rather than backend rework, so future enhancements, such as filtering by supplier, region, or time window, are straightforward additions.
- Supply chain visibility: status-aware reporting gives operations a real-time view of what’s moving through the network, how much value is in flight, and when it’s expected to land.
Summary
Project type: Inventory Valuation and Landed Cost Reporting. Technology: NetSuite plus Claude MCP. Impact: a multi-million dollar inventory portfolio with full cost transparency, built on a query-driven architecture that adapts to new business questions without a system redesign.
Outcome
The landed cost reporting solution replaced fragmented, PO-level cost estimates with a single, authoritative view of inventory value sourced directly from inbound shipments.
- Accuracy: landed costs now derive from authoritative shipment data, eliminating discrepancies between PO-level estimates and actual landed values, with every cost component tagged by type and traced to its source shipment.
- Auditability: the structured Item to PO to Shipment to Cost Breakdown format makes it easy to drill down and verify any valuation, so finance and operations teams can trace inventory value back to its component shipments and cost categories.
- Agility: business-driven changes to report structure are handled through query reorganization rather than backend rework, so future enhancements, such as filtering by supplier, region, or time window, are straightforward additions.
- Supply chain visibility: status-aware reporting gives operations a real-time view of what’s moving through the network, how much value is in flight, and when it’s expected to land.
Summary
Project type: Inventory Valuation and Landed Cost Reporting. Technology: NetSuite plus Claude MCP. Impact: a multi-million dollar inventory portfolio with full cost transparency, built on a query-driven architecture that adapts to new business questions without a system redesign.
Why Partner With GIR Software Services?
GIR Software Services pairs deep NetSuite expertise with AI-assisted reasoning to solve reporting problems that traditional approaches struggle with, from multi-table cost aggregation to reports that can be restructured as your business questions change.
If your organization is managing complex supply chains, inventory valuations, or landed cost accounting, contact us today.
We’ll discuss how an AI-assisted, query-driven approach to NetSuite reporting can bring the same clarity to your inventory data.
We’ll discuss how an AI-assisted, query-driven approach to NetSuite reporting can bring the same clarity to your inventory data.
Why Partner With GIR Software Services?
GIR Software Services pairs deep NetSuite expertise with AI-assisted reasoning to solve reporting problems that traditional approaches struggle with, from multi-table cost aggregation to reports that can be restructured as your business questions change.
If your organization is managing complex supply chains, inventory valuations, or landed cost accounting, contact us today.
We’ll discuss how an AI-assisted, query-driven approach to NetSuite reporting can bring the same clarity to your inventory data.
We’ll discuss how an AI-assisted, query-driven approach to NetSuite reporting can bring the same clarity to your inventory data.