Definitions

Item Charges

Item charges are used to allocate direct cost to purchases and sales of items. Typically,they are additional lines added on existing sales or purchase document. Item charges are based on an Item Charge No. that specifies the posting group to be used.

In the context of the Landed Costs, a new field was added to the Item Charges list page where you can define the default assignment method that will be used when creating landed costs.

Landed Costs

Landed Costs refer to the total expenses involved in getting a product from the supplier to its final destination. This includes not just the purchase price, but also a variety of additional costs such as:

Shipping charges: Costs associated with transporting the product.
Customs duties and taxes: Fees imposed by governments for importing goods.
Insurance: Coverage for potential losses or damages during transit.
Handling fees: Costs for loading, unloading, and other logistics.
Overhead expenses: Any other costs incurred during the process, such as warehousing or administrative fees

In the context of the Landed Costs application, Landed Costs are cost lines attached to a purchase (Purchase Blanket Orders, Purchase Orders, Purchase Return Orders, Purchase Quote) or sales document (Sales Blanket Orders, Sales Orders, Sales Return Orders, Sales Quote). By attaching these costs to the supporting order, user will be able to reconciliate estimated costs with actual invoice cost as well has impacting them on the items cost prices.

Costing method is usually actual costing when using Landed Costs. By actual costing is referred FIFO or Average costings (specific costing is not supported). Standard costing is an option, but if the sum of Landed Costs is not included in the standard cost, then it will be treated as a variance.

Recurring Costs

Recurring Costs should be considered as a setup table. It will be used to define with Item Charge is applicable to which customer(s)/vendor(s)/items(s). When creating a sales / purchase document, Landed Costs application will screen the Recurring Costs table to check if any cost is applicable for the current document. If so, then it will create a Landed Cost record associated with the document.

Landed Costs Tariffs

Landed Costs Tariffs are applicable tariffs for a specific Recurring Cost. This makes handling (to know which tariff is aimed for what) and selection easier (when creating Recurring Cost or manually adding Landed Cost to a document).

Last updated on Sep 25, 2024