Landed Cost

[Former Member]

Can anyone please show me a good resource that can teach me how the landed costs feature works in SAP Business One?

We need to use it but i can't see a clear explanation on how it works/data is entered.

[former_member1190345 · Accepted solution]

Groovy,

These steps may help you out:

1. Administration - Set Up - Purchasing - Landed costs. Here you define the cUstoms duty code , Name and the method of allocation.

2. Then go to Purchasing - Landed costs . Open the Landed costs window.Remonber the LC takes reference from the GRPO. Now choose the vendor and choose the GRPO you want to copy from.When you copy from GRPO the FOB price gets copied which is the price that appears in the Item row in the goods receipt PO documents.

3. In the item master in the purchasing Module you can find the Customs group where in you can choose the customs group applicable for that particular item. Depending on the customs group chosen the value is calculated at the Exp Cust. column in the Landed Cost Document.

4. The Expenditure column is directly dependent upon the costs tab.It Displays the expenses for each item unit as calculated in the current document. According to the landed costs allocation, this value is the weighted ratio of each item without the overall costs calculated in the document.

5. Whse price:Displays the price of the imported item in your warehouse. The price is calculated as follows:

FOB Price + Expected Customs + Expenses = Price at Warehouse

6. Total = Displays the value calculated by multiplying the price in the warehouse by the imported quantity.

7. In the costs Tab the Fixed costs and the variable costs are there. If you are using the continuous stock sysytem the variable costs will be greyed out. The amount here influences the Expenditure in the items tab.

Factor tab Displays the percentage ratio of each landed cost out of the total FOB costs of the shipment.

8. The vendor tab gives you the vendor details.

9. In the details tab the price list to be used fro calculating the Landed cost and whether the LC should include the Expenditure or not can be decided

10. From the journal Tab you can create the journal entry and also mention whether the JE should include custom expenses or not. Please note that in the transaction No. The JE no. will appear once you create and save the JE from the create JE button down below.

Hope I have helped you in solving atleast some of your problems

Nagesh

[Former Member · Accepted solution]

thank you Nagesh, it looks like you're quite new to the forum but you've been very quick and knowledgable about this one. I'll have a little look at your advice now.

thanks again

[Former Member · Accepted solution]

Nagesh, where did you get this information?

I am doing a GRPO from a PO in the test system, but i'd like to know if the 'FOB cost' mentioned in step 2 is the same price taken from the original PO.

Thanks

[former_member1190345 · Accepted solution]

Hi Groovy,

As you are aware the Landed Costs function allows companies that import goods to calculate the cost prices of the imported items, allocating customs, transport and insurance fees, taxes, and other landed costs on the original price of the imported items.

Hence logically the comapny will come to know what expenses were incurred for importing the goods only after the goods have landed at their place i.e after the creation of GRPO. Now for all this the base price which is FOB price in this case will be coming from the PO. Hence yes the price is taken from the orginal PO.

Nagesh

[Former Member · Accepted solution]

thanks again.

so we should basically incorporate shipping costs into the GRPO. Do i need to add a price list called FOB price?

[former_member1190345 · Accepted solution]

Groovy,

It depends which price list you want to use. This can be seen in the details Tab of the landed costs. You can change the basis of calculation by changing the Price list and using whichever Price list you want to use.

Nagesh.

[Former Member · Accepted solution]

Sorry, posted this message by mistake...

Edited by: Natalia Ujlaki on Jun 9, 2008 11:01 AM

[Former Member]

hi groovy,

landed cost is mainly used for import purchase excluding of item cost,which adds customs,excise,cess and others.

landed cost is created with copy the data of goods receipt.

can i know in which area u need to clear?

bye

[Former Member]

well we want to use our shipping charges to get an average markup to put on.

so lets say for an order of desk lamps costing $3.10 per unit, the shipping and duty takes it up to a landed cost of $3.98. How would I incorporate this into SAP?

do we add a new term of landed cost price for that particular item? or do we record the shipping costs of a certain shipping company then allow SAP to calculate the Landed cost?