From Version 5.0.0 of Clever Landed Costs there is new functionality available to to enable you to allocate costs to Inventory based on the Incoterms (Shipment Method Codes) you have agreed with the Vendor. As part of this change the ability to register landed costs against Transfer Order receipts has also been introduced.

Note: in order to use this functionality you must enable the Incoterm Allocation Enabled setting in "Landed Cost Setup".

With the functionality enabled select Landed Cost Incoterms from the menu ribbon of the "Landed Cost Setup" screen, which will open the "Landed Cost Incoterms" matrix screen.

Within the "Landed Cost Incoterms" screen you will see the list of Shipment Method Codes (as setup in Business Central) as rows and then each Landed Cost Type as the column. The blank row is used to select the relevant rule where no Shipment Method Code is populated on Purchase or Transfer Order. 

For each combination of "Shipment Method" and "Landed Cost Type" the following values can be selected.

• Blank – will bypass the calculation of the Landed Costs

• Purchase – will calculate the Landed Costs on the Purchase Order and post accruals on receipt of the Purchase Order

• Transfer – will calculate the Landed Costs on the Transfer Order and post accruals on point of receipt into the final Location

The power of this functionality is that you can control the when to post the liability for each Landed Cost based on the trading agreement.

An example being that if you are importing goods under an FOB agreement you are responsible for certain costs (e.g. Insurance) as soon as goods are loaded onto a Vessel in the Port of Origin, so would likely accrue for Insurance costs as part of the Purchase Order receipt, yet for Duty you would only accrue the cost once transferring off the Vessel into the Port of Destination. Previously in Clever Landed Cost all costs had to be posted against the Purchase Order.