Landed Cost Management in SAP S/4 HANA Public cloud

[FKai]

Dears

Our customer manages their inventory using the Moving Average Price method.

During the procurement process, after the materials are received, they often receive additional charges from different vendors (such as freight, customs, transportation,...), which affect the actual cost of the received items.

Could you please advise on the recommended approach to handle landed costs in SAP S/4HANA Public Cloud.

Thank you 

[Chuma]

Hello @FKai 

To manage landed costs in SAP S/4HANA Public Cloud using Moving Average Price:

 Use the “Manage Landed Costs” app to allocate non-merchandise costs post-GR, ensuring accurate inventory valuation and MAP adjustment.

This standard approach is recommended and fully integrated with the Public Cloud best practices.

Handling Landed Costs in SAP S/4HANA Public Cloud (MAP Method) – Summary

• Use the “Manage Landed Costs” app to allocate additional charges (freight, customs, etc.) after goods receipt.
• Reference the original Inbound Delivery or Purchase Order in the Landed Cost Document.
• Allocate costs based on quantity, value, or weight.
• The system automatically adjusts the Moving Average Price and updates the inventory value.
• Record related invoices (non-PO based) using “Create Supplier Invoice” referencing the Landed Cost Document.

Thank you and kind regards

Chuma

[FKai]

Thank you for your feedback, Chuma. Could you please share the related processes, as I’m unable to find the app “Manage Landed Costs”? Thank you in advance .