Introduced in Version 5.0.0 of Clever Landed Costs, we have added capabilities to use Charge Items to post both the expected and actual costs associated with "Landed Cost Types". This provides powerful functionality that ensures that the costs associated with importing goods can be held directly against inventory and most importantly will flow through to use or sale of goods with accurate costing.

For expected costs you must ensure that the Gen. Bus. Posting Group is setup against the "Landed Cost Type", the Inventory Account (Interim) for the relevant "Inventory Posting Setup" and the Invt. Accrual Acc. (Interim) is correctly specified through the "General Posting Setup".

For actual costs, as per standard inventory costing principles you will need to setup the Direct Cost Applied account in "General Posting Setup" and the Inventory Account for the relevant "Inventory Posting Setup" for the relevant "Landed Cost Types" and Item records. 

Purchase 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.

Purchase Receipt

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.

Transfer Scenario

FOB Incoterms are in place, therefore additional costs are incurred at the point of moving goods from a Vessel into Port.

• Expected Landed Cost of 10.00

The Transfer is received into the new Location and the accruals are posted.

Subsequently a Purchase Invoice for the Landed Costs is received with a value of 11.00, which is 1.00 more than originally expected.

Transfer Receipt

When the goods are received within Business Central the following postings will be made, treating expected landed costs as an actual cost variance on the Transfer Receipt and posting the accrual for the landed cost.

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 simply posting any variance to Inventory and Direct Cost Applied accounts.