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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Landed cost accounting
Supply chain | Supply Chain Management, Commerce
Answered

Landed cost accounting

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Posted on by PT-01100339-0 362

Dear Experts,

 

I'm encountering an issue with the Landed Cost module in D365FO when tracking costs, particularly in cases where the PO isn't closed immediately after partial receipt. Here's a breakdown of the scenario:

 

Case : PO Left Open After Partial Receipt, Then Closed Later

  1. A purchase order is created for 100 units of item A at $2 each.

  2. Estimated landed cost is entered as $50.

  3. Product receipt is done for 95 units, but the PO remains open (5 units still pending). This could be due to oversight or uncertainty about when to close the PO.

  4. Invoice is posted for the 95 units received.

  5. Actual landed cost invoice is $60. When posted, only $57 is absorbed into inventory, which is acceptable since 5 units are still open.

  6. Later, I decide to close the PO. I expect the remaining $3 to be absorbed into inventory, but it isn’t. It disappears, and there’s no variance line in the voucher. I have to manually clear the $3 from the landed cost clearing account.



    7.  
  7.  

Question:

 

Is there a workaround or functionality that ensures the remaining ALC amount ($3) is properly absorbed into inventory when the PO is closed late or after forgetting to cancel the remaining quantity?

 

Thanks in advance. Regards,

P.

 
Categories:
Dynamics 365 Supply Chain Management
I have the same question (0)
  • Suggested answer
    CA Neeraj Kumar Profile Picture
    CA Neeraj Kumar 4,936 on at
    D365F&O | Landed cost accounting
     
    Have you tried the functionality of over/under transactions available for Landed costs module? 
     
    To absorb the inventory costs of remaining $3, you can create a charges code with credit side = Ledger (Landed cost clearing).
    And from the posted invoice journal, you can load it as charges like we do for third party charges at later stages after invoicing.
     
    It will increase the inventory amount on posted inventory (if inventory is available), and also nullify the Landed cost clearing GL.
     
    If you need any further assistance on how to perform the above steps, please let us know.. i will explain with more details and screenshots.

    Regards,
    Neeraj Kumar
  • PT-01100339-0 Profile Picture
    PT-01100339-0 362 on at
    D365F&O | Landed cost accounting
     
    Thanks for your reply.
     
    I believe that over/under transactions are only applicable for goods in transit orders. In my case, I receive products using normal receiving process.
    About adding charges code after PO is invoiced, as far as I know, it is not applicable for item using moving average costing method.
     
  • Suggested answer
    CA Neeraj Kumar Profile Picture
    CA Neeraj Kumar 4,936 on at
    D365F&O | Landed cost accounting
    Hi ,
     
    In the article, it is explained in detail. You will be able to load the charges value on the inventory transactions and nullify Landed cost clearing account.
     
    Regards,
    Neeraj Kumar
  • PT-01100339-0 Profile Picture
    PT-01100339-0 362 on at
    D365F&O | Landed cost accounting
     
    From my understading, you are saying that we can add charges:
    - Credit: Ledger account (Landed cost clearing)
    - Debit: Item.
     
    However, because of moving average, the charges that are added after PO is invoiced, can not be directly added to the inventory. SO, we may use function "Revaluation for moving average" to allocate that charges to the inventory value.
     
     
  • Verified answer
    CA Neeraj Kumar Profile Picture
    CA Neeraj Kumar 4,936 on at
    D365F&O | Landed cost accounting
    Hi, 
     
    In this case, you just need to perform "Revaluation of moving average", no need to load charges from posted invoices.. 
     
    Loading would have worked in other valuation method. In moving average valuation, this revaluation will serve the purpose, system will post the adjustments in posting type " cost revaluation for moving average ", here you can use the GL that you want to nullify. 
     
    Regards, 
    Neeraj

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