Now that Clever Landed Costs has been installed you need to take the first step in setting up the app.
Use the search tool to find the Landed Cost Type page and create a Landed Cost Type code for each Landed Cost.
You can create a Landed Cost Type per each freight provider for example. Once created these are then assigned to the item.
Enter a new line per code, adding the required information for the calculation type and the posting accounts for each Landed cost.
The first field to populate is the Landed cost type code; a code is created for each landed cost type. A landed cost type can be created for each freight provider. Landed cost types are then assigned to items.
The description field is a way for you to identify each code you have created. It also helps in understanding what each code means.
The next field along is the Calculation Type; Defines whether the expected cost is calculated based on the duty %, or the weight or volume of the item based on the item card fields. Options are Duty, Weight (KG), Volume (M3). These options can be selected by using the drop down arrow next to the field.
Optionally set the Default Cost for this Landed Cost Type when the Calculation Type is either Weight or Volume. This will be inherited by new Item Landed Costs for this Landed Cost Type. When you update the Default Cost you will be prompted to update the Default Cost for all Item Landed Costs of this type. Answer yes to recalculate the Default Cost on the relevant Item Landed Costs.
By populating the field Include in Duty, against each code determines whether the cost is included in the duty cost calculation. e.g if Include in Duty = TRUE for landed cost type of freight then duty amount (£) = (Base Cost + Freight Cost)*Duty%
You will need to specify an Accrual Account to say this is where the costs are accrued on receipt of the landed cost, once the cost has been invoiced the expected cost is reversed and the actual costs are posted to the landed cost ledger entries.
NB: in order for the system to post through the expected costs correctly the fields for Automatic Cost Posting and Expected Cost Posting must be enabled on your Inventory Setup page else you will not see the Landed Cost accrual postings.
You should also have an Inventory Accrual Acc (Interim) stated on your General Posting Setup for the relevant general product posting groups assigned to the items that will have landed costs as this is where the expected costs are posted on receipting the order. For this combination of Gen. Bus. Posting Group and Gen. Prod. Posting Group you should also set the Overhead Applied account to the same as the Inventory Accrual Acc (Interim). This ensure the landed costs are posted correctly within the general ledger.
Like the accrual account you need a Variance Account for each code where there is a difference between the expected cost (recorded on receipt) and actual cost on invoicing the variance is posted to this account.
NB: Both the Accrual Account and Variance Account are newly created G/L codes specific for Clever Landed Costs. You can have a separate Accrual account per Landed Cost Type if you wish.
If is also possible to define dimension values against Landed Cost Types.
The dimensions will be copied into Document Landed Cost entries on a Purchase Order along with any other dimension set entries that are inherited from the purchase line.
During the receipt posting, the Landed Cost Ledger Entries are created with the dimension value from the Document Landed Cost and Accrual G/L Entries are then created with the dimension from the Landed Cost Ledgers.
On the Purchase Invoice, the dimensions are added to the purchase line when validating Landed Cost Type Code. Landed Cost Ledger Entries are posted off the back the cost assignment with the dimension from the purchase line and variances G/L Entries created with the dimensions from the purchase line.
Dimension values can be viewed on the Landed Cost Ledger Entries.
After we moved Posted Purchase Receipt records to the Landed Cost Journal with the Get Item Entries action on the line, we can view the related Dimensions too.