Setting Up Landed Costs

Access the Landed Cost Revisions form.

You associate the parameters of a landed cost, such as the general ledger category code, with a landed cost rule or an item. To associate the parameters with a landed cost rule, complete the Landed Cost Rule field. To associate the parameters with an item, complete the Item Number and Branch/Plant fields.

Landed Cost Rule

Enter a value from the Landed Cost Rule (41/P5) UDC table to which you associate landed cost parameters.

Cost Level

Enter a value from the Landed Cost Components (40/CA) UDC table to identify an add-on cost. This code also specifies the sequence of the cost add-ons for a particular item or group of items.

Percent of Cost

Enter a percentage of the item's primary purchasing cost that the system adds as a landed cost component to the base cost of the item as indicated on a purchase order.

Plus Amount

Enter an amount that the system adds to the indicated cost to equal the total cost amount.

Weight Rate

Enter the weight that the system multiplies by the unit weight that you specify for an inventory item. The system uses this amount to calculate a landed cost component.

Volume Rate

Enter the volume that the system multiplies by the unit volume that you specify for an inventory item. The system uses this amount to calculate a landed cost component.

Based on Level

Enter a value from the Landed Cost Components (40/CA) UDC table to identify the basis of cost for an item. If you use this code, you can roll costs based on a previous level total.

Include In Cost (Y/N)

Enter Y to include the landed cost in the item's unit cost.

Voucher Y/N

Enter Y to display the landed cost during voucher match. The system creates a receipt record in the F43121 table and the landed cost can be vouchered in the Voucher Match program. The Landed Cost Code (LAND) field in the receipt record will contain a value of 2.

Enter N to create a record in the F43121 table but prevent the landed costs from being vouchered in the Voucher Match program. The Landed Cost Code (LAND) field in the receipt record will contain a value of 3. The receipt record is necessary if the receipt is reversed.

Note: Journal entries are still created when the value is N. As a result, you may want the Landed Cost AAIs (4385/4390) pointed to the same general ledger account to cancel the entries.