As part of receiving goods that incur Landed Costs and subsequently Invoicing Landed Costs a series of costs are posted into the General Ledger within Business Central.

Referring to the Landed Cost Type you must ensure that the Accrual Account and Variance Account have been selected in order for cost posting to work correctly. In addition to Landed Cost Account setup and standard Business Central Account setup being in place, the Inventory Accrual Acc. (Interim) within the "General Posting Setup" screen is also used by Clever Landed Costs and must therefore be setup correctly.

Scenario

Purchase Order is placed for an Item with the following expected costs.

• Item Cost of 150.00
• Expected Landed Cost of 25.00

The Purchase Order is received into Inventory at which point Inventory and Accruals are posted for the above costs. 

Subsequently a Purchase Invoice for the Landed Costs is received with a value of 30.00, which is 5.00 more than originally expected.

Receiving Inventory

When the goods are received within Business Central the following postings will be made, incorporating the Item and Expected Landed Costs into the Inventory account and posting accruals for both the Item and Landed Costs.

Landed Cost Invoice Posting

When the Landed Cost Invoice is assigned to the Inventory and posted, the following financial transactions are made, posting the Invoice value to the Creditors account and then handling the Landed Costs by reversing the accrual and posting any variance for the Landed Cost.