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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Volume rate calculatio...
Supply chain | Supply Chain Management, Commerce
Answered

Volume rate calculation in landed cost

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Posted on by JE-27022043-0 31
Hi experts,
 
At the moment we are setting up landed cost in D365 for F&O.
I run into a problem with calculating ocean shipments as none of the options within the landed cost modules works for me.
 
Our forwarder uses fixed costs at origin and destination, so these costs are easy to manage.
 
The volumetric costs however are calculated based upon tariffs for cubic meters.
Using the volumetric divisors doesn't help us, as we can only use 2 decimals, where I need at least 3 or 4 (low weight per m3). 
This cuases the module to always calculates with the kilo weight instead of the amount per m3.
 
To solve the problem I tried to use rates and measurement on the variable cost. This also gives the wrong result.
 
Our consultant also does not have a suitable solution to this problem without reverting to a percentage or average cost per kilo.
 
I cannot imagine that we are the only ones who have volume rates for ocean freight and I hope someone can get me started with a method to do the right setup.
 
Thanks in advance for your responses
 
I have the same question (0)
  • Chetan Rajpurohit Profile Picture
    Chetan Rajpurohit 163 on at
    Hi 
    Could you please explain with a product example. One product with product`s volume. 
    And the rates or Volumetric cost as per KG or cubir meter. How it is defined in business term not in system term
     
  • JE-27022043-0 Profile Picture
    JE-27022043-0 31 on at
    Hi,
     
    Below is an example of our conditions with the carrier and a current ocean freight.
     
    Fixed cost origin: 236.45 Euro
    Fixed costs destination: 225.00 Euro
    Freight cost per M3: 20 USD 
     
    The fixed costs are not a problem.
    Our challenge is in calculating the freight costs as they are calculated volumetrically.
     
    Weight freight: 289.28 kg
    Volume: 1,069 M3
    Volumetric Divisor: 0.01(smallest possibility)
     
    According to the calculation in D365, the cost becomes:
    Volume/VolDiv=X
    When X > kg then the price is volume * freight cost
    When X < kg then the price is weight * freight cost
     
    In the example:
    1.069/0.01 = 106.9
    106.9 is less than the weight of the shipment so the number of kilograms is used.
     
    289.28 * 20 USD = 5,785.60 USD. 
     
    However, the actual cost is 1.069 * 20 USD = 21.38 USD.
    With what settings do I get the below calculation in the auto cost?
     
  • Verified answer
    Chetan Rajpurohit Profile Picture
    Chetan Rajpurohit 163 on at
    Hi 
    Is it possible for you specify the volume in LITRE instead of M3. Means instead of specifying 1.069 in volume , you specify 1069. Then as per screenshot below specify the cost/price per liter (which is 0.02 USD based on your example) in AUTO COST setup & select Apportionment method as VOLUME- 
     
     
  • JE-27022043-0 Profile Picture
    JE-27022043-0 31 on at
    Dear Chetann,
     
    Thank you for this solution, 
    This option could work, however we need to check all our other output (packing slips, invoices etc) what will be displayed. Normally dimensions will be displayed in m3.
  • BS-21040720-0 Profile Picture
    BS-21040720-0 7 on at
    Hi,
     
    Can you help on how did you setup the weight * rate for the landed cost?
     
    We have a scenario where depending on the weight of the items loaded on the voyage the value for freight should be calculated. 
     
    Also it would be great if you cna help share how did you resolve the M3 issue? 
  • Suggested answer
    JE-27022043-0 Profile Picture
    JE-27022043-0 31 on at
     
    Hi,
     
    First of all we checked the item weights and dimensions. As we noted them in mm and grams, we had to modify all items to meters and kilos.
    After that we had a small customisation done in the auto cost. We now have decimals instead of 2 which is necessary for the calculation of the rates.
     
    The volumetric settings for ocean freight have been put to 0,0001 to ensure that the calculate volume never exceeds the real volume.
     
     
     
     
    Auto cost has been adapted to the calculation
     
     
    Cost type code Category Apportionment method From date To date Broken by quantity Cost value Cost currency code Item sales tax group Minimum cost
    DEST_S_TPT Volumetric Weight 9/2/2024   No 0.00 EUR   3.12
     
    When volumetric calculation is done, the result of the sum will be the real cost per M3.
     

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