Setting up Landed Cost Templates
Before setting up landed cost templates, verify that you have existing cost categories in your account. To view or create cost categories, go to Setup > Accounting > Setup Tasks > Accounting Lists. When setting up cost categories for Estimated Landed Cost, use the Landed cost type only.
When you choose expense accounts for landed cost categories or accounts with subsidiaries, note the following. The expense account must belong to the same subsidiary as the transaction that is going to use the cost category.
For more information, see Creating Cost Categories.
When setting up landed cost templates, you can add multiple cost categories and set up each with its own allocation method and cost factor. They are used as the basis for the calculation of the estimated landed cost when the templates are applied to transaction line items.
To set up landed cost templates:
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Go to Lists > Accounting > Landed Cost Templates > New.
If you are on the Landed Cost Template List page, click New Landed Cost Template.
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On the Landed Cost Template page, enter the following template details:
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In the Name field, enter a unique name for the landed cost template.
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In the Description field, enter a description for the template.
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For accounts using the Multiple Currencies feature, select a currency from the list in the Currency field.
By default, this field displays your base currency. Other options include currencies that have been set up in your account.
Be aware of the following behaviors to help you set the currency of cost category templates:
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On item records, you can set templates for currencies that are set up in your account.
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On your transactions, you can select only the templates with the currency that matches the transaction’s currency.
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Changing the currency might cause a mismatch with items or transactions that have been associated with the template. For more information, see Editing Transactions With Estimated Landed Cost.
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For each unique cost category added to the template, complete the following:
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In the Cost Category column, select a landed cost category.
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In the Cost Allocation Method column, select the allocation method.
See how calculations are done when you use a specific allocation method, in the following table:
Allocation Method
Calculation of Estimated Landed Cost
Weight
Item Weight x Quantity x Cost Factor
If you select the Weight method, be sure to set the Item Weight on the item record.
Quantity
Quantity x Cost Factor
Flat Amount
Cost Factor
% Value
Cost Factor x Quantity x Price or Rate
If you select the % Value method, enter the percent value of the cost factor. For example, if you want to set 20% for the cost factor, you must enter 20 in the Cost Factor field.
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In the Cost Factor column, enter the value of the cost factor.
You cannot enter a negative value in this field.
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Click Add.
Landed Cost Templates must have at least one cost category in the sublist. Landed cost categories can be added only one time in a template.
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After you have set up the cost categories, click Save.
Click Reset if you want to delete the values from the fields, including the cost category details.
You can view the templates that you have set up on the Landed Cost Template List page. On this page, you can set the view to Landed Cost Template to display the Currency column in the list. You can also click the Edit link for a template to update its record details and cost category setup.
Note:Changing allocation methods and cost factors for cost categories might update existing estimated landed cost calculations only when you edit the associated transaction.
In edit mode, you can delete a template only if it is not associated with an item or transaction. You can also inactivate a template, which prevents it from being assigned to items. When you inactivate templates after they have been assigned to items, you cannot use them on transactions to calculate the estimated landed cost.