Dynamics Community Forum Thread Details

Landed cost apportionment method

Hi Experts,

I'm currently working on the Landed cost module and encountered these problems.

I use the Cost category "Volumetric" and Cost apportionment method "Volumetric" at different cost area. And realize that there are different results of cost estimation.

Transfer order line level: the result shows exactly what we know about the volumetric method.
- If Total weight > Volumetric weight --> Cost calculation based on Total weight.
- If Total weight < Volumetric weight --> Cost calculation based on Volumetric weight.

Unit cost per KG	1,500.00	VND
Volumetric divisor (X)	3,334.00


Transfer order						*106,790.71*
Item	Quantity	Inventory unit	Total volume	Total weight	Volumetric weight	Estimated costs
100000748	10	Kg	31,920.00	10.7000	9.5741	16,050.00
100002290	10	Bag	50,094.00	12.0000	15.0252	22,537.79
100002293	10	Bottle	16,675.00	10.4000	5.0015	15,600.00
100002313	10	Bag	31,920.00	10.7000	9.5741	16,050.00
100002315	10	Can	12,865.00	10.0000	3.8587	15,000.00
100002316	10	Can	8,000.00	5.4000	2.3995	8,100.00
100002322	10	Set	25,200.00	0.1000	7.5585	11,337.73
100002326	10	Pack	1,637.44	0.2000	0.4911	736.70
100002327	10	Pack	1,633.92	0.2000	0.4901	735.12
100002341	10	Bag	1,430.00	0.2000	0.4289	643.37

Voyage level: I cannot find the rules to calculate the estimated cost.

Unit cost per KG	1,500.00	VND
Volumetric divisor (X)	3,334.00


Transfer order				*59.9*	*54.40172765*	*Auto cost estimation*	*89,850.00*
Item	Quantity	Inventory unit	Total volume	Total weight	Volumetric weight	Volumetric	Estimated costs
100000748	10	Kg	31,920.00	10.7000	9.5741	10.7000	15,813.00
100002290	10	Bag	50,094.00	12.0000	15.0252	15.0252	24,816.00
100002293	10	Bottle	16,675.00	10.4000	5.0015	10.4000	8,260.00
100002313	10	Bag	31,920.00	10.7000	9.5741	10.7000	15,813.00
100002315	10	Can	12,865.00	10.0000	3.8587	10.0000	6,373.00
100002316	10	Can	8,000.00	5.4000	2.3995	5.4000	3,963.00
100002322	10	Set	25,200.00	0.1000	7.5585	7.5585	12,484.00
100002326	10	Pack	1,637.44	0.2000	0.4911	0.4911	811.00
100002327	10	Pack	1,633.92	0.2000	0.4901	0.4901	809.00
100002341	10	Bag	1,430.00	0.2000	0.4289	0.4289	708.00

2/ I use the Cost category "Fixed" and Cost apportionment method "Volumetric". And realize that there is no different between allocate the cost based on Volume or Volumetric. In my mind, when using volumetric, it must be the same rule:

If Total weight > Volumetric weight --> Allocate based on Total weight.
If Total weight < Volumetric weight --> Allocate based on Volumetric weight.

However, it only uses the Volume or the volumetric weight to calculate the cost allocation.

Unit cost per KG	-
Volumetric divisor (X)	3334


Transfer order					*54.40172765*	*2,000,000.00*
Item	Quantity	Inventory unit	Total volume	Total weight	Volumetric weight	Estimated costs
100000748	10	Kg	31920	10.7000	9.5741	351,977.25
100002290	10	Bag	50094	12.0000	15.0252	552,379.33
100002293	10	Bottle	16675	10.4000	5.0015	183,872.83
100002313	10	Bag	31920	10.7000	9.5741	351,977.25
100002315	10	Can	12865	10.0000	3.8587	141,860.50
100002316	10	Can	8000	5.4000	2.3995	88,214.85
100002322	10	Set	25200	0.1000	7.5585	277,876.77
100002326	10	Pack	1637.44	0.2000	0.4911	18,055.82
100002327	10	Pack	1633.92	0.2000	0.4901	18,017.00
100002341	10	Bag	1430	0.2000	0.4289	15,768.40

Please help me this topic.

Regards,

Categories:

Dynamics 365 Supply Chain Management

Hi PT-01100339-0,

1) Issue
- Different results are observed when using Cost category = “Volumetric” with Cost apportionment method = “Volumetric” at:
- Transfer order line level
- Voyage level

At transfer order level, calculation behaves as expected:
- If Total weight > Volumetric weight → cost based on Total weight
- If Total weight < Volumetric weight → cost based on Volumetric weight

However, at voyage level (as shown in screenshots), the logic appears different and not clearly aligned with the above rule
- Additionally, when using Cost category = “Fixed” with apportionment = “Volumetric”:
- No difference is observed between Volume-based and Volumetric allocation
- Expected “max(weight vs volumetric)” logic is not applied

2) Reason
- The key point is that Cost category and Cost apportionment method behave differently depending on the level (Transfer vs Voyage) and calculation phase

For Cost category = “Volumetric”:
--> At transfer order line level, the system performs a per-line decision and it compares:
- Total weight
- Volumetric weight (Volume / divisor)
- Then selects the greater value per line
- This matches logistics practice (chargeable weight per shipment line)

--> At voyage level (as seen in second screenshot), the system does not apply the rule per line, instead:
- It aggregates total values first (e.g., total weight vs total volumetric weight ≈ 59.9 vs 54.4 in your example)
- Then distributes cost proportionally to each line
--> At line level, allocation basis is taken from:
- Either actual weight or volumetric weight (based on system’s evaluation logic) and this explains why:
- Some lines use weight
- Some lines use volumetric weight
- And results differ from transfer-level calculation

For Cost category = “Fixed”:
- The system behavior is fundamentally different:
- Fixed amount is already determined (e.g., 2,000,000 VND)
- Apportionment method only defines distribution ratio, not calculation logic, and therefore “Volumetric” method here behaves like:
- Distribution based purely on volume or volumetric weight proportion
- It does not apply:
- “max(weight vs volumetric)” logic
- That rule applies only in Volumetric cost category, not Fixed

In short:
- Volumetric category → determines chargeable weight logic (max rule)
- Fixed category → only distributes cost → no weight comparison logic

3) Resolution
Understanding correct usage:
--> Use Cost category = “Volumetric” when:
- Cost depends on chargeable weight (max of weight vs volumetric)
- Typical use: freight cost per kg/m³
- Expect:
- Different behavior between transfer level vs voyage level due to aggregation logic

--> Use Cost category = “Fixed” when:
- Total cost is fixed (e.g., 2,000,000 VND)
- Apportionment method only defines how cost is split
- Do not expect max(weight vs volumetric) behavior here

To align results with expectations:
--> If per-line logistics calculation is required, apply cost at:
- Transfer order / container level
- Avoid heavy reliance on voyage-level allocation
--> If voyage-level must be used, understand:
- Allocation is based on aggregated totals, not per-line max logic

For consistency:
- Use same cost category across all levels
- Avoid mixing: Volumetric logic at one level and Fixed distribution at another level

Debugging approach:
- Compare:
- Total weight vs total volumetric weight at voyage level
- Then check:
- Allocation base per line in cost inquiry (as shown in screenshots)

Conclusion
- The behavior is standard and by design
- The apparent inconsistency comes from: Different calculation logic at transfer vs voyage level and different semantics of:
- Cost category (calculation logic)
- Apportionment method (distribution logic)
- Once this distinction is clear, the results in all screenshots are consistent with standard D365 Landed Cost behavior

For a more detailed answer, please provide more information.

Rg,

Alexander

*Due to the complex and different possibilities of deploying Dynamics 365 I highly recommend not to setup the application without some expert/partner or support. (For more information contact me under anassl@inno-solutions.info or visit www.inno-solutions.de)

*The Information comes directly from the manufacturer or provider and are validated (not guaranteed) up to date of creation of the posting.

References: