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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Landed Cost
Microsoft Dynamics GP (Archived)

Landed Cost

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Posted on by Junaid Idrees

Dear All,

Can i apply Landed cost on each Line item  of PO while receiving shipment. I know that it is applying on EXTENDED COST but i want to see the report that show Exact cost of an item i will bear so that i can put my margin on it and send quotation to my Customer. I am repeating again that i want to distribute LANDED COST on each item mentioned in PO.

 Junaid-

 

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  • Sagi88 Profile Picture
    Sagi88 2,250 on at
    Re: Landed Cost

    Hi Junaid.

    Yes you can..

    When entering a PO receipt click the expansion button next to Unit Cost in the Row Headers and this will open the Landed Cost Detail Entry screen for the Item.

    If you use the global landed costs you can split the landed costs  by weight or quantity also not just extension

    You can also determine which landed costs you expect to have by entering the landed cost group at the PO line when entering the Purchase order.

    Hope this helps.

  • Junaid Idrees Profile Picture
    Junaid Idrees on at
    Re: Re: Landed Cost

    Thanks for your detail reply.

    Your reponse cleared my points :) . Need some more clarification.

    Purchase Order window:
    I selected LC group id option for each line item but my question is, will It include this Landed Cost total amount with PO cost or not? Because right now it is not adding with PO Total so logically it should include or not?

    PO Receipt:
    Secondly, while entering PO Receipt i applied different LC cost with each line item. It is showing Landed Cost functional Total but it is not including with receipt total? Will it generate separate invoice for LC or what? How it will work?

    I do not find GLOBAL LC option which you mentioned above? where is that exactly?

    You earliest reply will be appreciated :)

    Thx.

  • Sagi88 Profile Picture
    Sagi88 2,250 on at
    Re: Re: Re: Landed Cost

    Purchase Order Window:

    No these costs are not reflected on the purchase order. The PO is reflective only of the Purchase Cost with the supplier - The landed costs will apply to the inhouse product cost once received. (Quite normal because many times the landed costs are for other suppliers such as transport companies or brokers)

    PO Receipt.

    The landed costs are treated separately. The PO Receipt is in regards to the purchase with the supplier.

    When you initially set up the landed costs you are asked if you want to invoice match the landed cost.

    If selected a separate accrual is setup for the landed cost invoice for matching.

    If any variance is recorded it will be reflected to the original receipt (example - Freight costs higher than expected)

    When invoices are received using the Enter/Match Invoice window you will see LC checkbox on the line. By clicking this box GP will know you want to match landed costs and not product receipts.

    For the Global LC costs, (Example the total Freight Charges or insurance for the shipment), on the Receivings Entry window you will see a Landed Costs Button.

    Click this button and you can enter Landed Costs for the shipment that will get distributed and added to all items received based on the meethod you select (Value, Quantity or Weight)

     

  • Junaid Idrees Profile Picture
    Junaid Idrees on at
    Re: Re: Re: Re: Landed Cost

    Dear,

    As you said, i entered only shipment through Receiving Transaction Entry window & applied Landed Cost on each line item.

    Now Entering invoice throgh "Enter Match Invoice' window, when i am selecting that checbox the system is showing an Alert that "you cannot mark the LC option because item is entered in Item Creditor field" ? I am unable to resolve this. Please suggest.

    I just need to see the final impact of cost on Invoice. Means PO Cost + Landed Cost.

    Thanx for clarification :)

    Junaid-

  • Sagi88 Profile Picture
    Sagi88 2,250 on at
    Re: Re: Re: Re: Re: Landed Cost

    As you are entering landed costs on the receipt, in the header of the landed cost detail you will see the unit cost including the landed cost.

    This is also visible through the PO document Inquiry by selecting the receipt of the PO or Item Receipts Inquiry under Inventory.

    If you have Smartlist Builder you can create a Smartlist based on the POP10500 table which contains all the info (Item Receipt cost before and after landed costs applied)

    The matching process is only used to remove the accrual and pay the supplier. Will only have a consequence on the item if there is a variance between the landed cost at time of receiving and matching.

    Not sure how you are tryiing to match the Landed Cost.

    Typically enter the invoice header information and then click the the LC box. When you hit the loop ant Item Number only landed cost possibilties should show up.

    Once you choose the Landed Cost click the Match to Shipment option.

     

  • Junaid Idrees Profile Picture
    Junaid Idrees on at
    Re: Re: Re: Re: Re: Re: Landed Cost

    Dear,

     Almost concept is clear for LC but only functionality is bit confusing in GP.

    Receiving Transaction Entry:
    I received goods by using Shipment not Shipment with Invoice. I created & applied Landed Cost on each Line items. Now PO extended cost is 2500$. But as you said it will not include LC cost amount with Extended cost. Fair enough its's clear to me.

    Enter Match Invoice:
    When i am selecting LC option and go to ITEM GLASS BUTTON, it shows Landed cost items like Frieght, Bank charges and all. I am selecting whatever i need, let's say Bank Charges which is 10.5% on Extended Cost. Another LC item is Frieght Charges which is Flat amount like 100$.
    Now when i am selecting actuall Inventory Item without clicking LC option to match shipment. Let say Item 01 extended cost is 2000$, Item 02 is 500$. Subtotal is showing me 2600$ including Frieght Charges i.e. 100$. My question is why it is not including Bank Charges amount which is 10.5%?

    At the time of receiving Total Cost is 2500$ but at the time of Invoice Matching it is 2600$ including LC which is corrrect. Plz tell me what is best practice? Which solution client normally go for Landed cost apply process.

     I used POP10500, it is fantastic & showing everything. Thx :)

    Awaiting your reply.

  • Sagi88 Profile Picture
    Sagi88 2,250 on at
    Re: Re: Re: Re: Re: Re: Re: Landed Cost

    OK, I believe you are trying to apply the landed costs to the item at time of invoicing and not receiving.

    Step should be the following:

    1) Enter PO receipt for quantity receieved from the supplier

    2) at the same time as the receiving enter the landed cost factors,  (example: Freight and Bank Charges), at the item level or total receiving level. This will calculate the in house cost of the product.

    3) Post the receiving (This will update the inventory at the landed cost, Insert information into the POP10500 table and setup the accrual for the invoices to be received for the product and landed cost factors.

    4) When the invoices are received for the merchandise simply match them to the item receipts.

    5) When the invoices for landed costs are received match them to the landed cost factor you arfe getting billed for. Typically these are for a quantity of 1 with a unit cost which is the total amount charged.

    You tehn match the to the receipt clicking the expansion button. This will automatically match it with the product received. No need to select the item unless you supplier is charging you both.

    Even though the Bank charges arfe a percent of extension, the percent will only calculate at time of receiving.

    When you match these you have to enter the amount being charged. (1 at the total charge) and match it to the receipt also.

    Hope this makes things a bit clearer.

  • Junaid Idrees Profile Picture
    Junaid Idrees on at
    Re: Re: Re: Re: Re: Re: Re: Re: Landed Cost

    Dear,

    Perfect !!!!!!!!

    I followed all the steps exactly as you mentioned above..

    I matched Supplier invoice with PO receipt and posted which is working perfectly & POP10500 showing the accurate result. Did i do right?

    Now when i am trying to match LC invoice with same PO receipt, it is not showing receipt number in Match to Shipment Grid. Why?  What is missing...

    Even I am posting Merchandize Invoice & LC Invoice separetly...

     Thx.

  • Sagi88 Profile Picture
    Sagi88 2,250 on at
    Re: Re: Re: Re: Re: Re: Re: Re: Re: Landed Cost

    Glad to hear we are getting closer. We are almost there.

    First thing is to check that the Landed Cost is marked for Invoice Match. (Cards - Inventory - Landed Cost)

    You will see 2 check boxes 1 for Invoice Match and the other for Revalue Inventory for Cost Variance - They should both be checked)

    In order for these boxes to be available you will have to select a Vendor ID. Can be any vendor - you will be able to specify the actual vendor when you select the landed cost at receiving time.

    At time of receiving when entering the landed cost you will also see the check box for Match on the third line of display and the Vendor to which we expect to be invoiced by.

     

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