You must ensure that the Accrual Account and Variance Account have been selected for each "Landed Cost Type" 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 as detailed here.
Furthermore, if using Transfer Order cost assignment you must complete the Transfer Variance Account which is also found on the "Landed Cost Type" setup.
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.
| Account Type | Account | Amount |
| Balance Sheet | Inventory | 175.00 |
| Inventory Accrual | -150.00 | |
| Landed Cost Accrual | -25.00 |
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.
| Account Type | Account | Amount |
| Balance Sheet | Creditors | -30.00 |
| Landed Cost Accrual | 25.00 | |
| Income Statement | Landed Cost Variance | 5.00 |
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.
| Account Type | Account | Amount |
| Income Statement | Transfer Landed Cost Variance Account | 10.00 |
| Balance Sheet | Landed Cost Accrual | -10.00 |
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.
| Account Type | Account | Amount |
| Balance Sheet | Creditors | -11.00 |
| Landed Cost Accrual | 10.00 | |
| Income Statement | Transfer Landed Cost Variance Account | 1.00 |