Reviewing Landed Costs

To review landed costs:

1. Use the Accrued Liability Reconciliation Tool to verify that all differences between the PO costs and the voucher costs are properly accounted for. The entries that are made to this account by PeopleSoft Cost Management should offset the entries that PeopleSoft Payables makes. The reconciliation tool helps identify transactions that are not offsetting for both material costs and other landed costs.

2. Generate PeopleSoft reports to accurately compare estimated versus actual landed costs, enabling you to better evaluate suppliers. Reports include:

   1. Estimated vs. Actual Landed Costs (CMS3000): Lists variances between the PO's price and the voucher's price for all landed cost components.

   2. Total Purchase Variance (CMS3010): Lists variances between the PO (price and exchange rate) and the voucher (price and exchange rate) for all landed cost components.

   3. Standard Purchase Variance (CMS3020): For standard cost items only, lists the variance between the item's standard cost and the PO price that is recognized at the receipt of the item.