Setting Up a Landed Cost

Access the Landed Cost Revisions form.

Landed Cost Rule (Release 9.2 Update)

Enter the code from the UDC table 41/P5 that identifies a landed cost rule.

Item Number

Enter the system-assigned number for the item. You can use the short, long, or third item number format.

Branch/Plant

Enter the code that identifies a separate entity within a business for which you want to track costs. For example, a business unit might be a warehouse location, job, project, work center, branch, or plant. You can assign a business unit to a document, entity, or person for purposes of responsibility reporting. For example, the system provides reports of open accounts payable and accounts receivable by business unit to track equipment by responsible department. Business unit security might prevent you from viewing information about business units for which you have no authority.

PO Supplier Number (Purchase Order Supplier Number)

Enter the address book number of the supplier or subcontractor.

To set up landed cost for GST, you are not required to enter a supplier in this field. The system allows you to set up landed cost with the item and branch plant combination.

Unit Weight

Enter a number to use to convert the primary unit of measure to the user-defined weight unit of measure for an item.

In the next field, enter the user-defined code from UDC table 00/UM to indicate the weight standards such as ounces, grams, and kilograms. The system uses this unit of measure for the item or overrides it for an individual item or container.

Unit Volume

Enter a number to use as a ratio of conversion between the primary unit of measure and the user-defined volume unit of measure for an item.

In the next field, select a user-defined code from UDC table 00/UM to specify the unit of measure for volume. For example, GL is the unit of measure code for a gallon and LT is the unit of measure for a litre.

Cost Level

Enter a user-defined code from UDC table 40/CA. The code indicates the sequence of add-on costs for a particular or group of items. Examples are:

3: Excise tax

4: Education cess

You cannot use the same tax type more than once for the same supplier.

G/L Cat (general ledger category)

Enter a user-defined code from UDC table 41/9 to identify the G/L offset used by the system to determine the account to which to post the transaction. Examples are:

BED: Basic excise duty

AED: Additional excise duty

If you do not want to specify a class code, enter **** (four asterisks) in this field.

Percent of Cost

Enter the percentage of the item's primary purchasing cost for the system to add to the base cost of the item as a landed cost component.

Plus Amount

Enter the amount for the system to add to the cost to equal the total cost amount.

Weight Rate

Enter a rate for the system to use to calculate landed cost. The system multiplies the rate that you specify by the unit weight of an item.

Volume Rate

Enter a rate for the system to use to calculate landed cost. The system multiplies the rate that you specify by the unit volume of an item.

Based on Level

Enter a user-defined code from UDC table 40/CA to indicate the basis of cost for an item. Examples are:

3: Excise tax

4: Education cess

Include in Cost (Y/N)

Enter Y or N to specify whether the system displays landed costs. Values are:

Y: Add landed costs to the item's unit cost.

N: Do not add landed costs to the item's unit cost.

Voucher Y/N

Enter Y or N to specify whether the system displays landed costs during the voucher match process. Values are:

Y: Display landed costs. The system creates a receipt record in the F43121 table and populates the Landed Cost Code (LAND) field in the receipt record with a value of 2. You can voucher the landed cost in the Voucher Match program.

N: Do not display landed costs. The system creates a receipt record in the F43121 table and populates the Landed Cost Code (LAND) field in the receipt record with a value of 3. You cannot voucher the landed cost in the Voucher Match program. The receipt record is necessary if the receipt is reversed.

Note: The system creates journal entries even if you enter N. As a result, you might want to assign the Automatic Accounting Instruction (AAI) for landed cost (4385 and 4390) to the same GL account, to cancel out the entries.