Initializing BC Inventory Balances with Landed Costs

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Posted on by ME-31032107-0

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We are in the process of migrating from Dynamics GP to BC. As part of the migration, we are bringing over current OnHand Inventory Qtys and Costs from GP by creating Item Journals in BC. This works well if all we wanted was the Qty & Cost by Item/Location & Bin Code.

But we also want to break down the costs between Product (PO) and Landed Costs (Tariffs, Freight, etc.). In GP, we can break down the costs this way.

I imagine we will be able to do the same in BC when we start receiving new POs, and enter the Landed Costs as Item Charges on Purchase Invoices.

But I don't see a way to breakdown our initial inventory balances between Product and Landed costs.

Is there a way to do this with Item Journals? Or is there another way? We can't use POs or Purchase Invoices, the number of items is far too great.

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Dynamics 365 Business Central

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Valentin Castravet 29,090 Super User 2025 Season 2 on at

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Initializing BC Inventory Balances with Landed Costs

I understand why you want this, but this approach isn’t really common for opening balances because the amount of effort outweighs the benefit. Most of the time opening balances contain the sum of the product and landed costs.

In Business Central, landed costs are handled with Item Charges, and those only work on sales/purchase documents, so purchase orders are the only way to split base cost from landed cost at opening.

If you wanted to, you can load initial quantities and product cost on a purchase order, then apply the landed cost on the same or a separate purchase order. You can import either purchase orders or item journals via configuration packages so for this reason POs are only slightly slower.

You’ll need to align posting groups so Item Charges post to the same G/L as Inventory. After posting the product and landed costs via POs, you’ll have balances in Inventory and A/P. You can post a journal entry to offset them to clear those accounts so only the Inventory subledger remains with a balance.

Valentin Castravet
Work: Zander ERP Services
Blog: Dynamics 365 Business Central Insights
LinkedIn: www.linkedin.com/in/valentin-c-0500a247/

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