Landed Cost Journal

You can use the "Landed Cost Journal" to make manual adjustments and corrections to the "Landed Cost Ledger Entries". It is most often used to write off expected landed costs that are no longer expected to be invoiced, so that the receipt no longer shows as having outstanding landed costs.

Note: for Purchase Receipts, posting a Landed Cost Journal only updates the Landed Cost Ledger and does not post any financial transaction. Any adjustment needed in the General Ledger (for example to clear an accrual that will not be invoiced) must be made with a standard Business Central General Journal.

Note: for Transfer Receipts where the Landed Cost Type uses the Charge Item Cost Treatment, posting an Invoice line reverses the accrual that was posted at receipt and posts an Item Charge Value Entry for the difference between the expected cost and the Cost Amount (Actual) on the line. This does update the General Ledger and the Item's inventory value.

Journal Batches

Multiple "Landed Cost Jnl. Batches" can be created so that each user has their own journal to work in when adjusting landed costs. To do this, click the ellipsis next to the Batch Name field and select New to create a new "Landed Cost Jnl. Batch", as shown below.

The first time the journal is opened, a DEFAULT journal template and a DEFAULT batch are created for you automatically. Journal templates can be maintained from the "Landed Cost Journal Templates" screen, which you can open from the Landed Cost Journal Templates action on the "Landed Cost Setup" screen.

Writing off expected landed costs

To retrieve outstanding expected landed costs on to the journal, select Get Item Entries from the Process menu. The "LC Journal Get Entries" screen opens and lists the Item Ledger Entries that still have open landed costs.

Complete the fields at the top of the screen and then select the Item Ledger Entries you want to adjust.

The list shows the Landed Cost Container No., Document Type, Document No., Source Type, Source No., Description, Location Code, LC Cost Amount (Expected) and Entry No. of each Item Ledger Entry. Select one or more lines and click OK.

For each selected Item Ledger Entry that has an open receipt entry for the chosen Landed Cost Type, a journal line is created with:

• an Entry Type of Invoice

• the Posting Date and Document No. you entered

• the Item Ledger Entry, Vendor, Location, Container, Job and dimension details copied from the original receipt entry

• a Cost Amount (Expected) equal to the outstanding expected cost shown as a negative value, and a Cost Amount (Actual) of zero

To write off the whole expected cost, leave Cost Amount (Actual) as zero. If part of the cost has been or will be incurred, enter that amount in Cost Amount (Actual).

Note: posting an Invoice line closes the open receipt entry for that Item Ledger Entry and Landed Cost Type, whatever amount you enter in Cost Amount (Actual). No further landed cost can then be invoiced against that receipt entry.

Posting the journal

Once you are happy with the adjustments on the journal, select Post from the Process menu (or press F9). You can also post one or more whole batches by selecting Post on the "Landed Cost Jnl. Batches" screen.

Before posting, each line is checked. The line must have a Landed Cost Type Code, Item Ledger Entry No., Posting Date and Document No., and the Item No. and Vendor No. must match the Item Ledger Entry. For Receipt and Invoice lines the posting setup is also checked:

• Default Cost Treatment - the Landed Cost Type must have an Accrual Account. For Purchase Receipts it must also have a Variance Account, and the "General Posting Setup" for the Vendor and Item must have an Invt. Accrual Acc. (Interim). For Transfer Receipts it must have a Transfer Variance Account.

• Charge Item Cost Treatment on Transfer Receipts - the "General Posting Setup" for the Landed Cost Type's Gen. Bus. Posting Group and the Charge Item's Gen. Prod. Posting Group must have a Direct Cost Applied Account and an Invt. Accrual Acc. (Interim).

When the journal is posted:

• a Landed Cost Ledger Entry is created for each line and, for Invoice lines, the open receipt entries for the same Item Ledger Entry and Landed Cost Type are closed (the Closed by Entry No. and Closed at Date fields are completed)

• when no expected landed cost remains on the Item Ledger Entry, its Landed Costs Open field is cleared so it no longer appears in "Get Item Entries" or on landed cost invoices

• a "Landed Cost Register" record is created showing the entries posted and the Journal Batch Name

See Landed Cost Ledger Entries for more information about the entries created, and Landed Cost Register for the audit trail of each posting.

Journal lines

The following fields are available on the journal lines.

Below the lines, the Landed Cost Type of the selected line is shown.

Other actions

The following actions are also available on the "Landed Cost Journal" screen.