This section details how landed costs incurred during the purchase lifecycle are processed.
The postings will differ depending on two factors.
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Item Costing Method (Standard Costing or other)
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Landed Cost Type (Cost Treatment - Default or Charge Item)
Worked Example Scenario
All of the Landed Cost posting examples in the following sections for Purchasing will be based on the same Item and Landed Cost information detailed below.
| Cost Type | Amount |
| Material Cost (Purchase Order) | 100.00 |
| Expected Freight Cost (Landed Cost) | 10.00 |
| Actual Freight Invoice | 15.00 |
| Freight Variance | +5.00 |
The purchasing lifecycle depicted in the following examples will follow the below three stages.
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Purchase Receipt (goods into Inventory, not yet Invoiced)
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Material Invoice (Vendor Invoice for the material processed)
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Landed Cost Invoice (Freight Invoice processed)
Key Accounts
The following Accounts within Business Central are used for handling Inventory and Landed Cost postings during the purchase process and will be referenced within the following sections of the user guide.
Where an account is described as coming from the "Charge Item General Posting Setup", this is the "General Posting Setup" for the Gen. Bus. Posting Group on the Landed Cost Type and the Gen. Prod. Posting Group of the Landed Cost Type's Charge Item No.
| Account | Description |
| Inventory (Interim) | Holds expected inventory value - reversed on invoice |
| Invt. Accrual Acc. (Interim) | Accrual for expected purchase cost - reversed on invoice |
| Inventory | Actual inventory value |
| Direct Cost Applied | Intermediate account - credits from Value Entry posting |
| Purch. Account | Intermediate account - debits from purchase invoice posting |
| Overhead Applied | Credit from indirect cost Value Entries (for Default Cost Treatment). Should be set to the same account as Invt. Accrual Acc. (Interim) |
| Payables Account | Vendor liability (from Vendor Posting Groups) |
| Purchase Variance | Purchase Variance for Material (from General Posting Setup) |
| LC Accrual Account | Landed Cost accrual (Accrual Account from Landed Cost Type setup for Default Cost Treatment) |
| LC Variance Account | Landed Cost variance (Variance Account from Landed Cost Type setup for Default Cost Treatment) |
| LC Invt. Accrual Acc. (Interim) | Landed Cost specific interim accrual (from Charge Item General Posting Setup for Charge Item Cost Treatment) |
| LC Purch. Account | The account used on the landed cost invoice line (from Charge Item General Posting Setup for Charge Item Cost Treatment) |
| LC Direct Cost Applied | Intermediate account - credits from Item Charge Value Entry posting (from Charge Item General Posting Setup for Charge Item Cost Treatment and FIFO Items) |
| LC Purchase Variance | Purchase Variance (from Charge Item General Posting Setup for Charge Item Cost Treatment and Standard Cost Items) |