Hello Community,

If you decided after reading my prior blog Landed cost vs. Freight which will triumph in your organization? - Microsoft Dynamics GP Community that landed cost is the winner, then read further to find out where a landed cost is created as well as where you put these landed costs in the purchase order process.

Let’s get to it!

I have created a basic landed cost for you to review. You can locate the Landed Cost Maintenance window by navigating to Cards >> Inventory >> Landed Cost

A key options I want to point out are the Cost Calculation Methods. These options are Percent of Extended Cost, Flat Amount, and Flat Amount Per Unit.

Percent of Extended Cost:
Extended cost x Percentage Enter a percentage. If the extended cost is \$120.00 and the Percentage is 10%, then the landed cost is \$12.00

Flat Amount:
Flat Amount (Per shipment receipt). Enter an originating amount. If the originating amount is \$10.00, then the landed cost is \$10.00 for the entire shipment line item.

Flat Amount Per Unit:
Flat Amount x Units of shipment receipt line. Enter an originating amount. If the originating amount is \$2.00 and the line item quantity is 12, then the landed cost for the line is \$24.00. (Units of measure are disregarded.)

Well now you got yourself a landed cost, what are you going to do with it?

After you finish your landed cost creation you can use one of the following three methods to add a landed cost to a shipment:

Manually for each item through the Receivings Landed Cost Entry window

Manually for a receipt through the Receivings Landed Cost Apportionment window

Manually for each item Receivings Item Detail Entry window

Manually for each item through the Receivings Landed Cost Entry window
This method of adding a landed cost is done by drilling into the Receivings Landed Cost Entry window, by using the blue arrow next to the Unit Cost column.
The key difference in this method of adding a landed cost is that this allows you to add a landed cost to each item manually.

Manually for a receipt through the Receivings Landed Cost Apportionment window.
This method of adding a landed cost is done by clicking the Landed Cost button at the bottom of the Receivings Transaction Entry window for a Shipment receipt.

The key difference in this method of adding a landed cost is that this allows you to apportion the cost amongst all your items at one.

Manually for each item in the Receivings Item Detail Entry window
This method of adding a landed cost is done by drilling into the Receivings Item Detail Entry window using the blue arrow next to the Item column.
The key difference in this method of adding a landed cost is that this allows you to add a landed cost to the entire receipt vs. per item basis. You can enter the landed cost group to the item in the purchase order by drilling into the Purchasing Item Detail Entry window to have the landed cost flow automatically to the receipt. This is handy, when you know there will be a landed cost associated with the shipment.

You can then select the specific Landed Cost Group ID to assign a group of landed costs to an item.

I hope this information has provided you with direction on where landed costs can be entered within Microsoft Dynamics GP.

Keep an eye on the Dynamics GP Support and Services Blog for more landed cost blogs coming soon!

Until next time,
Nicole Fiskum | Support Engineer | Microsoft Dynamics