Landed Cost

[barbola]

I'm looking for some information on how to use this effectively. We currently receive inventory and include freight in the cost of the item, so that when we receive a product at $100 each, this includes $90 that will be paid to the vendor and $10 to the freight company.

When we invoice match, we will match the $90 invoice against the $100 receiving as $100 per item and then take a Trade discount which gets coded to the freight account so the net invoice payment is $90.

Then, when the freight bill comes in it is a payables trx coded to the freight account.

This was set up when landed cost used to be an additional module but now that it is included, and has been for a while, I'm thinking we can use it but I don't really know where to begin? I read the user manual but it is not as clear as most sections.

Any help is much appreciated.

thanks
b.

 

[barbola]

Is anyone familiar with Landed Cost?

thanks

 

[swabunn]

-set up landed cost id with default accounts
- At the time of receiving, assign landed cost to items using apportion by method and that will automatically calculate the inventory cost layer for the items in the receipts.

 

[barbola]

Does it break it down by Item and Freight costs separately? Does inventory get updated with total cost, and how does this affect payables and invoice/matching?

thanks.

 

[swabunn]

inventory will be updated by total unit cost ( i.e. item unit cost + landed cost unit cost) and invoices would be matched sseparately for item's and landed cost.

 

[barbola]

OK thanks very much. I'll have to try some trx in the test company.