Depending on what Cost Treatment you are using for a "Landed Cost Type" there are different setup requirements to ensure that Clever Landed Costs posts costs in a way that ensures financial integrity.
All Cost Treatments
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Incoterm Allocation Enabled must be selected on the "Landed Cost Setup" screen, otherwise no landed costs are posted on Transfer Receipts
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Automatic Cost Posting and Expected Cost Posting to G/L must be enabled on the "Inventory Setup" screen. If Expected Cost Posting to G/L is not enabled, the landed cost G/L entries described in the following articles are not posted at Transfer Receipt
Default Cost Treatment
The expected landed cost is posted directly to a Transfer Variance Account (P&L) at receipt time - not to Inventory. This is because Business Central's transfer posting does not support expected costs, so the cost is treated as an actual expense immediately.
A separate LC Accrual Account holds the liability until the stevedore invoice arrives. Any difference between expected and actual is posted as additional variance.
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Each "Landed Cost Type" requires a Transfer Variance Account. This is checked when the receipt entries are posted and when the stevedore invoice is posted
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Each "Landed Cost Type" requires an Accrual Account, which holds the liability. This is also checked when the receipt is posted
Charge Item Cost Treatment
For Charge Item treatment on transfers, the expected stevedore cost is posted as an actual Item Charge Value Entry against the transfer receipt Item Ledger Entry. This adds the cost directly to the item's inventory value. A G/L correction then creates an accrual so the cost can be matched against the stevedore invoice when it arrives.
At invoice time, the accrual is reversed and a variance Item Charge Value Entry is posted for any difference between expected and actual.
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Each "Landed Cost Type" requires a Charge Item No. and Gen. Bus. Posting Group
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The "General Posting Setup" associated to the Charge Item (the Landed Cost Type's Gen. Bus. Posting Group with the Charge Item's Gen. Prod. Posting Group) must have Invt. Accrual Acc. (Interim), Direct Cost Applied Account and Purch. Account configured
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A "General Posting Setup" must also exist for the Landed Cost Type's Gen. Bus. Posting Group with the Item's Gen. Prod. Posting Group, with a Direct Cost Applied Account. This is the account the accrual correction moves the cost from. If it is missing, the accrual correction is not posted at receipt
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An "Inventory Posting Setup" with an Inventory Account must exist for the destination Location and the Item's Inventory Posting Group
Note: from version 5.3.5, the Charge Item landed costs on a Transfer Order are checked before the Transfer Receipt is posted, including the Inventory Posting Setup and any mandatory or blocked dimensions for the Item, Charge Item and Location. If a check fails, the whole receipt is stopped so that you can correct the setup and post again.