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Finance | Project Operations, Human Resources, ...
Unanswered

Landed cost and standard cost

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Posted on by 65

Hi All,

I would like to ask question about landed cost and standard cost module.

The scenario is the following

  • Setup: auto cost with apportionment = pcs on Item level
  • Cost Estimate is correct: if we use the cost estimate function running it for a qty 1000 the system calculates the breakdown correctly i.e. 20,50 based on the freight auto cost per pcs with a cost value of 0,0205.
  • Now, when updating standard cost from the estimate, the item price is saved per unit and rounded to €0.02 (actual would be €0.0205)
  • Up to the vendor invoice it’s fine (uses auto cost).
  • At freight invoice posting, the variance reads the item price breakdown:
    If kept “per 1,000,” system multiplies variance ×1,000
    If €0.02/unit, you lose precision and variance is understated

Questions

  1. Is this expected behavior?
  2. Can we keep somehow Price unit = 1,000 on the item price to avoid rounding? 
  3. Can someone explain the variance posting calculation done by the system
Categories:
I have the same question (0)
  • André Arnaud de Calavon Profile Picture
    304,774 Super User 2026 Season 1 on at
    Hi Zuk,
     
    Can you share the variance posted in your environment? What is the activated standard cost for your item?
  • Zuk Profile Picture
    65 on at
    Hi André,
     
    I had to create it again as per below:
    • Item price x1000qty 5,814.65 landed cost breckdown freight 20.50
    • PO 18,480.00qty unit price 5,814.65  line amount 107,454.73
      • estimated voyage cost  378.84 (item auto-cost 0,0205xpcs)
    PO invoice posting
     
    Vendor invoice posting assuming the voyage cost is 0,0250 x 18480= 462
     
    this is the audit trail
     
     
     
  • Zuk Profile Picture
    65 on at
    Does anyone have experience with landed cost and standard cost?

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