| # Landed costs – overview Landed costs, which can be linked to purchase transactions, are the total of all costs that are associated with the procurement of an item until delivery and receipt in a warehouse. Landed costs typically include freight costs, insurance costs, customs duties, and handling costs. For specific landed costs, separate business partners can be involved. Landed costs give you insight into the real procurement costs of an item. Landed costs in the procurement process During the entire procurement process, landed costs must be taken into account: Purchasing When purchase orders, warehouse transfer orders, purchase schedules, or ASNs are created, landed costs can be added. These costs are defaulted, but they can be changed. Receiving During the receiving process, all landed costs are defaulted and added to the inventory value of the received item. Purchase invoice processing Users can receive, match, approve, and pay a purchase invoice for landed costs. Therefore, the inventory value of the received items will be updated. A purchase invoice can also be processed before the goods are received. Cost basis for landed costs Variable landed costs Depending on the quantity, variable landed costs can be calculated using one of these methods: By Quantity By Volume By Weight Percentage Value By Freight Management By Distance Surcharge Percentage Fixed landed costs Fixed landed costs are calculated using the Fixed Amount method. In that case, landed costs can be specified per: Purchase order header Purchase order line Shipment notice header Receipt header Receipt line If a fixed amount is specified on header level, this amount is apportioned to the order lines, ASN-lines, and receipt lines. For more information, refer to: Landed costs – fixed amounts Landed costs setup Before landed costs can be linked to purchase transactions, you must define the master data. For more information, refer to: Landed costs – setup Landed costs on purchase transactions Landed costs are linked to an order, schedule, ASN, or receipt by landed cost lines. A landed cost line can be: Automatically generated, based on a landed costs scenario Copied from the origin to which the landed cost line was initially linked Manually specified or modified For more information, refer to: Landed costs – orders Landed costs – order receipts Landed costs – freight orders Landed costs – purchase schedules Landed costs – purchase schedule receipts Landed costs – advance shipment notices Matching and approving of purchase invoices Purchase invoices for landed costs can be received, registered, and payed in Accounts Payable, just as regular purchase invoices. During the warehouse receipt, invoice receipt lines are created for the regular purchase lines and for the landed cost lines. Purchase invoices for landed costs will be registered as Invoice Related to Landed Costs. Based on a purchase number or packing slip number, purchase invoices can be matched with the landed cost receipt lines, and then approved. Matching can be done individually and by range. For more information, refer to: Landed costs – invoice matching |