Landed Cost Enhancement

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Landed Cost

Project Team

Coordinator

Armen Rizal

Functional Specs

Armen Rizal

Sponsors

• Goodwill Consulting

Status

Not Started

Objectivity

To provide visibility of imported goods while retaining control of all associated costs resulting in accurate landed costs.

Functionality

• Identifies all cost elements associated with goods that are purchased
• Achieves true landed cost for each product through accurate cost apportionment based on volume, value, quantity, etc.

Current Issue

• The major issue in actual landed cost is each associated costs arrives at different time, even at the time where all the goods are sold out.

Planned Development

• Simplifies the receipt of shipments by pre-costing the shipment before the goods arrive
• Compares actual invoice cost with estimated costs for all cost elements
• Variance will be posted to Landed Cost Variance account (under COGS group)

Comparison to other ERPs

PeopleSoft

Landed Costs To track the complete cost of an item, you can include the landed cost charges in the item’s cost. Landed cost charges can include expenses such as freight, insurance, duty, and handling. You can: • Specify the calculation and allocation method for each charge when you define landed cost charges for items. • Create cost templates that specify which cost charges to attach to any combination of item, item category, vendor, vendor location, ship-to ID, and purchasing business unit. • Directly associate, in PeopleSoft Purchasing, cost templates and individual charges with a purchase order header or purchase order schedule. Based on the charges associated with a purchase order, the system creates estimated costs for purchase orders and receipts. When you receive and put away a weighted average or an actual costed item, the system values the transaction based on the total landed cost. For standard costed items, the system continues to use the item’s standard cost.

SAP Business One

Q8. What is Landed Costs? A8. The Landed Costs functionality in SAP Business One allows you to calculate the actual cost price of an item based on added costs incurred such as custom duties, insurance, tax, etc. The base document for the landed cost process is the Goods Receipt PO.

--Armen 22:43, 26 July 2007 (EDT)