From Version 5.0.0 of Clever Landed Costs, where a set cost applies for a Purchase Order, Transfer Order or Landed Cost Container, it is possible to assign and process such costs.
The cost will then be apportioned across the Items that have been received using an apportionment method, such as splitting by Weight or Quantity, based on the Calculation Type of the Landed Cost Type.
Note: fixed cost allocation will only work when using the Charge Item Cost Treatment option on the Landed Cost Type, and it is not possible to set up default Fixed Cost values if any Landed Cost Rules have already been applied to the Landed Cost Type. A Landed Cost Type with the Duty Calculation Type cannot be used for Fixed Costs.
Fixed Cost Setup
To set up Fixed Costs, open the "Landed Cost Types" screen, select the Landed Cost Type and then select Fixed Cost Setup from the Process menu. The "Fixed Cost Setup" screen will be shown, from which you can control the relevant Fixed Costs that you wish to account for when shipping goods.
Note: the Fixed Cost Setup action is not available if the Landed Cost Type has a blank Calculation Type or already has Landed Cost Rules (see Item Landed Cost Assignment).
Each Fixed Cost can be set up with the following information and will then be populated against the relevant type of Document or Container. A blank filter field means the Fixed Cost applies to all values for that field.
| Landed Cost Type | The Landed Cost Type that the Fixed Cost is being set up for. It is filled in for you when coming from the "Landed Cost Types" screen. The system shows an error if the Landed Cost Type does not use the Charge Item Cost Treatment, uses the Duty Calculation Type, or already has Landed Cost Rules. |
| Type | The type of Document the cost will be linked to:
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| Landed Cost Vendor No. | The Vendor from whom the landed cost invoice is expected to be received. This is copied from the Landed Cost Type and can be changed. If it is left blank, the Vendor on the Landed Cost Type is used on the document. |
| Landed Cost Vendor Name | The name of the Landed Cost Vendor No., shown for reference. |
| Vendor No. | Can only be edited for the Purchase Type. If you specify a Vendor No., the Fixed Cost is only applied to Purchase Orders with the same Buy-from Vendor No. |
| From Location Code | Can only be edited for the Transfer Type. Use it to make the Fixed Cost relevant only when transferring from a specific Location. |
| Location Code | For Purchase or Transfer records, makes the Fixed Cost relevant only for a specific receiving Location (the Location Code of the Purchase Order, or the Transfer-to Code of the Transfer Order). Leave this blank for Container records. |
| Container Type | Can only be edited for the Container Type. Enables you to set up specific costs depending on the type of Landed Cost Container that is being used to transport the goods. |
| Shipping Agent Code | For Transfer Orders or Landed Cost Containers, enables you to specify different costs based on the Shipping Agent transporting the goods. It cannot be edited for the Purchase Type. Changing it clears the Shipping Agent Service Code. |
| Shipping Agent Service Code | For Transfer Orders or Landed Cost Containers, enables you to specify different costs based on the service used to transport the goods. It cannot be edited for the Purchase Type. |
| Shipment Method Code | Applicable to all Types. Enables you to set a different Fixed Cost based on the Incoterms, as identified by the Shipment Method Code on the document. |
| Calculation Type | Shown from the Landed Cost Type for reference, and controls how the cost is apportioned (see below). It cannot be edited. |
| Amount (LCY) | The value of the Fixed Cost, stored in local currency. It defaults from the Default Cost of the Landed Cost Type. |
Two further fields, Override Level and Override No., are hidden by default and can be added with Personalise. Override No. limits the record to one specific document or container number, and Override Level sets a priority, where a higher value takes precedence over a lower value when several records match.
How a Fixed Cost is chosen
For each Landed Cost Type, only one Fixed Cost Setup record is applied to a document. Where several records match the document, the system uses:
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a record whose Override No. is the document or container number, if one exists
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otherwise the record with the highest Override Level
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and, where the Override Level is the same, the record with the most filter fields filled in
For example, a record for a specific Vendor is used in preference to a general record with no Vendor No.
Fixed Costs on documents
Fixed Costs are suggested on a document as follows, and can then be viewed and edited by selecting Fixed Costs from the Landed Costs menu on the Purchase Order or Transfer Order, or from the Landed Cost Container.
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Purchase Orders - when an Item line is added, or the Buy-from Vendor No., Location Code or Shipment Method Code is changed
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Transfer Orders - when an Item is entered on a line, or the Transfer-from Code, Transfer-to Code, Shipping Agent Code, Shipping Agent Service Code or Shipment Method Code is changed
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Landed Cost Containers - when the Container is created, or the Container Type, Shipping Agent Code, Shipping Agent Service Code or Shipment Method Code is changed
Note: each time Fixed Costs are suggested, the existing Fixed Cost lines on the document are replaced, so any manual change to a Fixed Cost line is lost if one of the fields above is changed afterwards.
Fixed Cost lines can only be edited while the document is open, unless Fixed Costs Editable When Released is enabled on the "Landed Cost Setup" screen.
How the cost is apportioned
When the Fixed Cost is posted, the Amount (LCY) is shared across the received Item Ledger Entries for the document in proportion to the following, depending on the Calculation Type. Any rounding difference is added to the last entry.
| Weight (KG) | The received quantity multiplied by the Gross Weight of the Item (or the Net Weight if no Gross Weight is set). |
| Volume (M3) | The received quantity multiplied by the Unit Volume of the Item. |
| Per Piece | The received quantity. |
| Percent | The inventory value of each received line, excluding other landed cost item charges. |
An Item does not receive a share of the Fixed Cost if:
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Exclude from Fixed Cost is enabled for the Item on the "Item Card" (in the Landed Cost FastTab)
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Exclude from Fixed Cost is enabled on the Purchase Order Line, Transfer Order Line or Landed Cost Container line
Posting Fixed Costs
Each Fixed Cost is posted once, as an item charge value entry against the received Item Ledger Entries, using the Charge Item set on the Landed Cost Type. Fixed Costs are posted automatically:
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for a Purchase Order, when the last outstanding Item quantity has been received (posted as Expected Cost)
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for a Transfer Order, when nothing is left in transit after the receipt (posted as Actual Cost)
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for a Landed Cost Container, when the Container is closed
You can also post them earlier, based on the quantities received to date, by selecting Post Fixed Costs from the Landed Costs menu on the Purchase Order or Transfer Order, or from the Landed Cost Container. The system tells you if there are no Fixed Cost lines, no receipts yet, or if the Fixed Costs are already fully accrued.
Note: from Version 5.3.5, when you post the Transfer Order receipt that will trigger the Fixed Cost posting, the system first checks the dimensions and General Posting Setup needed for the Charge Item. If anything is missing, the receipt is not posted, so you can correct the setup and post again.