web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / landed costs
Microsoft Dynamics GP (Archived)

landed costs

(0) ShareShare
ReportReport
Posted on by DG015 100

We are using landed costs to value inventoy and matching invoices and revaluing inventroy is checked.  My AP person indicates that when the invoice arrives and it is more than the actual cost than what was received he actually has to manually adjust the inventory layer for the variance.  IS this accurate?  Is there another way of handling this because many times we don't receive an invoice until after inventroy is received.

*This post is locked for comments

I have the same question (0)
  • Dan Liebl Profile Picture
    Dan Liebl 7,320 on at

    Is the AP invoice for the product?  Or the shipping cost?   I also assume you are using the FIFO Perpetual valuation for inventory.   Are quantities negative when he is matching?  

    Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com

  • Zhigang Lu Profile Picture
    Zhigang Lu 795 on at

    Do you process the following step 3? If yes, GP will automatically adjust the inventory cost for the variance.

    The following steps are for how to handle the landed cost in invoice is more than the landed cost in receiving.

    1. Setup landed cost ID (Cards >> Inventory >> Landed Cost and assign vendor ID for landed cost

    2. Use landed cost during you process receiving.

    3. Process invoicing match for landed cost (Transactions >> Purchasing >> Enter/Match Invoices), make sure you enter vendor ID assigned to the landed cost ID, mark the LC option and enter a landed cost ID as an item, also you need mark revalue IV.

    For detail information how to process invoice matching for landed cost, please review GP Help.

  • DG015 Profile Picture
    DG015 100 on at

    We have tried this, but when there is a variance the system seems to want you to manually spread the difference and does not let you post until this is done?

    Two seperate questions also

    1.  We do our own transporting of inventory.  How do you suggest handling landed costs in this scenario?  We thought to set up an internal AP and clear with a credit upon invoicing?

    2.  Also, how do we handle landed costs for multiple PO's on the same load/delivery?

  • Dan Liebl Profile Picture
    Dan Liebl 7,320 on at

    First, what is the inventory valuation.   If you are using FIFO Periodic, it is possible Landed Costs may not work well.

    Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com

  • Zhigang Lu Profile Picture
    Zhigang Lu 795 on at

    >1.  We do our own transporting of inventory.  How do you suggest handling landed costs in this scenario?  We thought to set up an internal AP and clear with a credit upon invoicing?

    If you do your own transporting of inventory, does it mean you don’t need pay shipping fee? If so, you don’t need select invoice match and revalue inventory for cost variance when you set up landed cost.

    >2.  Also, how do we handle landed costs for multiple PO's on the same load/delivery?

    There are 3 type landed cost calculation methods, flat amount per unit, percent of extended cost, and flat amount. I am not sure what kind products you have, maybe flat amount per unit is good for you. Also you can setup all different landed cost ID for your different products.

  • DG015 Profile Picture
    DG015 100 on at

    Per #2 above.  I will be using my own transportation to make various stops on different PO's.  How do I assign this one cost across various PO's?

  • Zhigang Lu Profile Picture
    Zhigang Lu 795 on at

    What is your current way to assign this one cost to various PO? Lack of information, sorry it is hard to give you good suggestion.

    Here are some ideas for your reference.

    At first you need setup one land cost ID or more for each stop. When you receive each PO, you need use these land cost. Also you can select apportion by value, quantity or weight in receiving landed cost apportionment window (Purchase >> Transaction >> Receiving Transactions Entry >> Landed cost).

    If you use invoice matching for landed cost, you can enter each landed cost as line items and select different PO in one purchase invoice. You need manually assign this one cost to each land cost.

  • DG015 Profile Picture
    DG015 100 on at

    We currently do not use landed costs for our internal transportation costs.  We are using FIFO perpetual and may pick up various PO"s from various vendors in route.  We match PO's to invoices in the system.  What would be the best way for allocation our internal shipping costs?  Should I allocate one shipping costs to all these PO's?  What is the mechanics for doing this?  Is flat rate the best way to handle this?

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics GP (Archived)

#1
mtabor Profile Picture

mtabor 1

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans