Estimated Landed Cost Management
When adding items to transactions, you can select the landed cost template used to derive the estimated landed cost.
Review the following guidelines and reminders when using Estimated Landed Cost:
-
Ensure that your landed cost templates are assigned to the items that you want to add to the transaction. For more information, see the following topics:
-
For item receipts and standalone vendor bills, be sure to check the Landed Cost per Line box. If you want to set this option as your default preference, go to Setup > Accounting > Accounting Preferences. On the Order Management subtab, check the Landed Cost Allocation per Line box. For more information about the landed cost option, see Using Landed Cost Allocation Per Line on Transactions.
-
In line items, you must only set the Landed Cost Template field. You can select only the templates that have the same currency as the transaction.
See the following screenshot for selecting a template on a standalone vendor bill.
-
Selecting a template automatically checks the line item’s Auto-Calculate box to ensure that landed cost estimates are calculated and displayed. Be sure that you do not clear the Auto-Calculate box when you are ready to save the transaction.
-
If you update the transaction currency, it might not match with the currency of the templates in existing line items. Related fields for the templates are cleared and left blank. Here are some ways to handle this case:
-
You can choose another template that has a currency that matches the updated one on the transaction.
-
You can update the currency of the existing template and then reassign it to the item. For information about updating the template currency, see Setting up Landed Cost Templates.
-
Creating Purchase Orders With Estimated Landed Cost
On purchase orders, you can add items one at a time or by using the Add Multiple option. The preferred landed cost template of an item is set as its default template on the purchase order. You can still change default templates in the item sublist. For information about setting up default templates, see Assigning Landed Cost Templates to Items.
Creating Item Receipts With Estimated Landed Cost
Line items on receipts that are generated from a purchase order have the same landed cost templates as on the originating transaction. You can still change the templates on the generated item receipt, however, they are not going to match those on the originating transaction. This change recalculates the estimated landed cost for the updated line items.
Refer to the following guidelines for estimated landed cost on item receipts:
-
When you save transactions with invalid templates or templates not mapped to items, landed cost estimates are not calculated for the affected line items. All fields related to the template are left blank.
-
When you change the template for partial item receipts, discrepancies on landed cost estimates may occur between the initial and succeeding item receipts.
-
When you generate item receipts from purchase orders through web service or scheduled scripts, note the following. Landed cost templates used for the items and landed cost estimates are carried over.
-
You can switch from estimated to real landed cost per line item or per transaction. For more information about using real landed costs, see the following topics:
Creating Vendor Bills With Estimated Landed Cost
Vendor bills that are generated from purchase orders have the same landed cost templates as on the purchase order. Landed cost templates are not editable for these vendor bills.
When creating standalone vendor bills, you can assign and update the landed cost template. Estimated landed cost calculations depend on the selected template. You can also switch from estimated to real landed cost per line item. For more information, see Landed Cost Allocation per Line.
Viewing the Estimated Landed Cost on Transactions
On item receipts or standalone vendor bills, you can view the estimated landed cost in the following ways:
-
To view the estimated landed cost for each line item
On the Items & Expenses subtab, in the Landed Cost column, click the icon for the line item.
The breakdown of estimates is displayed for each cost category.
-
To view the estimated landed cost for the transaction
On the Landed Cost subtab, view the total estimate for each cost category.
Editing Transactions With Estimated Landed Cost
Review the following guidelines when you update transactions that have line items with estimated landed cost:
-
When you inactivate landed cost templates, you cannot select them from the Landed Cost Template list on transactions. If you replace an inactive landed cost template, you cannot select it again after saving the transaction.
-
You can use only either estimated or real landed cost. When both are set up in a line item, real landed cost entries are overwritten when you save the record. If you want to switch from estimated to real landed cost, verify that no landed cost template is selected for the line item.