Landed Costs Calculation and Assignment

Rules to calculate Landed Costs:

• Landed Costs will be calculated based on all the applicable Recurring Costs;
  • For a Recurring Cost to be considered applicable, it’s necessary to:
    • Match the Source No. (Customer or Vendor) and the source document Item No;
    • Match the Document type;
  • Recurring Cost Tariff should also be applicable. For that, it’s necessary:
    • Tariff Status must be Active;
    • Document Date must be between Tariff Starting and Ending Date;
    • Minimum Qty. on Landed Cost Tariff Lines must be equal or superior to quantity on Source Document Line;
    • If Tariff is based on amount and on Sorce Document Line the Unit Cost/Price is not filled, then the Landed Cost is not calculated.

If some of these rules are not followed, then Landed Cost aren’t calculated. A message will appear, informing that no Landed Costs are created, however, it will not inform which of the rules is not followed and which Recurring Costs aren’t appearing. If, at least, one Landed Cost is calculated, them no message appears.

NOTE: Landed Costs cannot be modified after an item shipment or receipt is posted.

When opening the Landed Cost of a sales or purchase order, if there is at least one item that has been received/shipped, then all the Landed Costs are not editable and not calculable. It is also not possible to add new lines. In that case, an alert on opening the window informs that any changes are forbidden due to a receipt or shipment:

Calculate Landed Costs on Documents

Landed Costs can only be calculated for document lines of Type = Item.

Landed Costs can be calculated on documents in three different ways:

Using the action “Calculate”

To use this action, on Purchase/Sales Order, click on Landed Costs:

Landed Costs page will open - on that page, click on action “Calculate”:

Landed Costs are calculated, based on all the rules explained before:

On Document Release

When Releasing a document:

• If on Landed Costs Setup the field “Confirm on Document Release” is set to false, then the Landed Costs are automatically calculated.
• If on Landed Costs Setup the field “Confirm on Document Release” is set to true, then a confirmation message appears to the user:

  

  If “Yes”, the Landed costs are calculated. If “No”, then no Landed Costs are calculated.

When calculating Landed Costs:

• if an applicable Recurring Cost (at least one) is found, then Landed Costs lines are created;

• if no applicable Recurring Costs are found, then a message appears:

  

Example:

1. Create a Purchase Order and insert lines of type= Item and click on Release:

   

2. A message appears, saying Recurring Costs exists for the inserted lines:

   

3. When opening Landed Costs, it’s possible to see all the lines automatically calculated (if Item and/or Vendor are set on Recurring Costs):

   

When a Recurring Cost is assigned by weight, the Item must have Weight set on document line. If not, an error message appears, and the Landed Costs aren’t calculated:

If only one Item doesn’t have weight, then the item is disconsidered and landed cost will only be calculated for the remaining;

Manually create Landed Costs

To manually create Landed Costs, it’s necessary to, on Purchase/Sales Order, click on Landed Costs:

Landed Costs page will open:

Rules to manually create Landed Costs:

• When manually creating Landed Costs, “Recurring Cost Code” and “Tariff Code” fields cannot be filled;

• Every other field can be filled;

• Based Quantity will be suggested based on document lines, but can be changed;

• Assignment method must be mannually filled (and it’s validated when inserted. For example, if assignment method is “weight” and no item has defined weight, an error message appears);

• Unit Cost and Fixed Charge must be filled mannualy (ate least one), to calculate the amount.

Example:

Even with calculated Landed Costs, it’s possible to manually add Landed Cost lines. To do this, click on an empty line and fill the fields:

If a Landed Cost is manually created, then the update of that Landed Cost it’s responsability of the user.

Landed Costs Assignment Table

Table where is possible to check all the Landed Costs assigned to a document.

To open it, it’s necessary to open Landed Costs on an Order and then click on Landed Costs Assignment:

Landed Costs Assignment is open:

For each registered Landed Cost, this table will contain the exact assignment of the costs.

It’s only possible to view the information in this table. Editing it or opening the associated documents from this table is not possible.

Whenever the document release is made, if there’s already calculated Landed Costs, they’ll be recalculated, based on document lines. If Landed Costs are defined manually, then Landed Costs don’t change, but assignments will be recalculated based on document lines.

Close Landed Costs

If the user doesn’t want to apply one or more Landed Costs, then it’s necessary to close them. This action is required if the expected cost won’t be be invoiced by vendor (for any reason).

• In case this happens on Landed Costs assignment, it’s necessary to Close the Landed Cost on Landed Costs page:

  

In this case, the Line remains in that page, cannot be reopened and will not move to the Posted Landed Costs. Also, when clicking on “Calculate”, the Landed Cost that is closed won’t be recalculated.:

In case a Landed Cost has been wrongly closed then “reopening” should be done via an additional Landed Cost entry (manually created) or via a dedicated purchase order / purchase invoice with item charge.

• If Landed Cost has already been received then the Landed Cost must be closed on Posted Landed Costs.

  

Set Landed Cost as manual

It’s only possible to Set Landed Costs as manual if the document is open:

if it’s released, the action is not available:

When setting Landed Cost as manual, all the lines will be set as manual; Recurring Costs code will disappear and fields are editable:

Set as manual is the only way to actually delet the Landed Cost Line (only manual lines can be deleted):

Convert Purchase/Sales Quotes and Blanket Orders into Purchase/Sales Orders

Sales orders created from Blanket orders will inherit the Landed Costs “Unit Cost” from the Blanket Order, even if the quantity is less than originally calculated and even if the tariff used has a different “Unit Cost” applicable to the “Base Quantity” of the Landed Cost.

For example:

• A sales Blanket Order exists, with Landed Costs:

  

• When clicking on “Make Order”:

  

• Sales Order is created, and the Landed Costs are inherited on Sales Order:

  

  

  Those Landed Costs can be then recalculated when releasing the order to match the actual order document details.

“Prices including VAT” boolean on Vendor

If the vendor has “Prices including VAT” set to True, then, on Purchase Invoices, tha action “Get Landed Costs” will be disabled:

In these cases, the boolean must be set to False on the Invoice:

When set boolean to false, the action will be enabled:

When a Landed Cost Line is inserted, then it’s not possible to change the information on “Prices including VAT” field.