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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Managing Freight - Lan...
Microsoft Dynamics GP (Archived)

Managing Freight - Landed Cost???

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Posted on by Beth Hodge 65

We're struggling with managing our freight costs - making sure we capture those costs appropriately and we bill those costs back to our customers.  We use both SOP (for our distribution operation) and Project Accounting (for our professional services which include some inventory and noninventory items).  The large majority of the items we purchase and sell are noninventory and a large percentage of both noninventory and inventory items are purchased as dropship.  We use POP for all of our purchases and do not allow receiving without a PO.

We've been handling our freight via a line item (FREIGHT is set up as a Misc Charge type item) on both the PO and the Sales Order/Project Bill.  This works FAIRLY well in most cases for the INcoming freight costs and dropship freight costs, though it's cumbersome and it causes problems like POs left open because the Freight item has not been "received".  However, we still have our biggest struggle with our OUTgoing freight cost - making sure it gets recorded against the SOP invoice as cost and billed to the customer.

 So my questions are these:

1.  Does anyone else have a better way to handle freight?  It just seems like it's something that should be more "built in" in the system...

2.  Is anyone familiar with Landed Cost and how it might or might not work for this scenerio?  I've looked into Landed Cost and frankly am having trouble finding much documentation on how it is set up and what it does and does not do for you.  My biggest question is does it work with noninventory and/or dropship items??

Thanks!

*This post is locked for comments

  • Ron Wilson Profile Picture
    Ron Wilson 6,010 on at
    Re: Re: Managing Freight - Landed Cost???

    So I think the capturing of freight and passing along to the customer on drop ship purchase orders is ok right?  Your POP and SOP should be linked, so you should be able to run a quick report to see freight that needs to be applied to the linked SOP.  As far as inbound purchase orders that will be turned around and shipped back out, we have this same issue.  Are the POP and SOP still linked?  If so, the same report should be able to show you the extra inboud freight on non drop ship POP linked to SOP.  Then you would have to manually add the POP freight to the SOP.  Would something like this work for you?  If so, I could explain in more detail.

  • Austin Strickland Profile Picture
    Austin Strickland 20 on at
    Re: Managing Freight - Landed Cost???

    I agree with you. It’s easier now than ever to locate products you need from around the world.  But just because you’ve found a lower price for a product doesn’t mean it’s less expensive once you’ve paid to import it into your own country.  In addition to the price of a product, you must factor in transportation costs, insurance charges, and all the duties, VAT and excise taxes, and other fees that Customs may asses on the goods.

    Do give a a chance to Allegro Freight for your air, sea or ocean freight needs.

    Austin

  • ABC Profile Picture
    ABC 285 on at
    Re: Managing Freight - Landed Cost???

    Hi Cristina,

     Thank you so much for the detailed information on Landed Cost, Freight and Misc. Charges.

     I do have one question though.  How do these charges treat Returns (/with Credit) Transaction in POP?

     

    Thanks in advance!

    Abby

  • Mike Culbertson Profile Picture
    Mike Culbertson 10 on at
    Re: Managing Freight - Landed Cost???

    Hi,

       Does anyone have a report for landed costs for bids? 

     

  • Braam Koekemoer Profile Picture
    Braam Koekemoer 500 on at
    Re: Managing Freight - Landed Cost???

    Hi

     Bluemoon Industries have a Freight Matrix product for GP. www.bluemoonind.com

    Do you need any help with landed cost? 

     

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    Re: Managing Freight - Landed Cost???

    Hi Beth--

     

    Landed cost may help you on the purchasing side, but it would not pass directly through to sales order.  What landed cost does is include an additional cost in the item itself (so it gets posted to the inventory layer with a greater cost, that includes the landed portion).  So it rolls the landed cost in to the inventory cost.  It will not work with drop ship items.  However (and I did not test it all the way out) it does look like you could use it with non inventory items.

     Landed cost is set up in three parts...Cards>>Inventory>>Landed Cost, set up the individual costs you want to attribute (mark match to invoice if you want to match the cost to the actual freight invoice or whatever).  Cards>>Inventory>>Landed Cost Groups, to establish common groups of landed costs that are applied to purchase orders.  Cards>>Inventory>>Quantities/Sites to specify a specific landed cost group for a certain item/site combination.


    Then when you enter a purchase order, you can click on the line item and use the item number expansion to view the detail, and there will be a landed cost group id (defaulted from quantities/sites) and you can change it if desired (or manually enter the landed cost group if there was no default).

     Then when you receive, you can also see/change the landed cost group ID by using the expansion arrow next to the Item Number field again.  Or to see the individual landed costs calculated on the line (and modify the individual landed costs, even adding others) you can use the expansion next to unit cost.    You can also use the landed costs button at the bottom of the receivings window to apportion landed cost across the entire document (for example, take one landed cost for a total amount and apportion it to the line items based on weight, quantity, extended cost, etc).

     If you have chose to match to invoice for the landed cost, you can then later enter an invoice from the freight company using Transactions>>Purchasing>>Enter/Match Invoice (even though you have no PO from the freight company) and on the line item mark the LC checkbox (which means match to landed cost).  The system will then display any prior received landed costs that can be matched to for that vendor.

     I know this is a bit much to absorb, so post back if you need more explanation.  I find that the help screens in GP itself are more helpful than the manual in understanding it.


    Take care,

    Christina

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