Landed Cost Functionality

[JP]

Hello,

I am looking to see if anyone can give me guidance on the landed cost functionality. I have watched many YouTube videos and read many articles. The one thing I cannot tell is if this feature is customizable or not. From what I have seen then the standard use case will not work for what I am trying to do. 

I am trying to apply a standard freight costs to my incoming raw material through the GRPO with a journal entry of:

Debit - Raw Material
Credit - Standard Raw Material
Credit - Standard Freight 

Is landed cost the right function for this set up

Any advice would be helpful 

[dgb]

I would expect the standard landed cost document to simple Debit Raw Material and Credit Standard Freight. This document is create after the GRPO and should do exactly what you need

[Felipe_Lima]

@JP,

If I got it right, you could test the following mock up:

1. Begin with a GRPO for your item at $100.
2. Add a Landed Cost for the standard freight cost of $20, allocating it to the “Freight” cost line.
3. Later, the actual cost increases to $30 (an additional $10), so, set up a new Landed Cost type called “Freight Variance” and create a new Landed Cost based on the original one, and allocate the $10 to it.
4. Finally, generate the AP Invoice for the Freight Carrier. Use the “Copy From > Landed Costs” option, which will include both the original Freight cost and the Freight Variance as services.

This process ensures traceability, as all related documents are linked and visible on the relationship map. The result will be similar to this:

[JP]

Hi Felipe, Thank you for laying this out so clearly. I attempted to follow what you have written here and I am having a problem. When I create the first landed cost document my raw materials (inventory) is not being debited. Instead it is debiting a variance account (set in the item master data - this also the same account that gets credited when a GRPO is created). Any ideas how I can ensure the inventory value does change through the landed cost document?