Analysis of Freight in Subsequent Debits/Landed Costs

Hi Friends,
In the Invoice Verification Process, we do the Subsequent debits for various costs, say for fright, clearing charges etc. The users want to do the analysis of Freight component in Subsequent Debits or the landed costs. Any idea as to how can we acheive the same? What are the steps to be followed?
Thanks in advance.
Regards

No reply recived.

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Confused about the Landed Costs Allocation Account

Hi, Im uncertain about which account to use in the landed costs module.
What we are doing right now is this:
We add our raw materials throught the Goods Receipt Module Debiting our inventory and Crediting the allocation account which its in the liability category.
Next we add our transportation and import costs through the landed costs module. Here we debit the same inventory account and Im not sure as to which acount to credit. Should I use the same allocation account?
Can some please share your experience?
Thank you.

Hi Jose,
You should use a different allocation account. When you pay the bills to the customes agents and freight companies for the landed costs, they can be coded to this allocation account and can be reconciled accordingly.
The allocation account used for the goods receipts is cleared when processing AP Invoices to the suppliers, and should also be reconciled for differences
Hope this helps

Help needed in Freight / Landed Cost

Hi,
(1) Needed help in finalising the process of freight. In many cases (mostly
interstate) the customer arranges for the transporter to bring the goods to
the factory as the original vendor does not provide the facility of
transportation. Now the customer wants to include this transporation cost to
the cost of the item. Also the transporter will later send the bills
against which they will book it in tally and clear its payments.
How can the above be achieved. I cannot use the freight component in the GRN
as it charges the same to the original vendor (and not the transporter).
Also if i try to use landed cost then it ask me for some landed cost default
allocation account.
(2) Also in cases when the customer is importing some item, the bill of entry
takes some time to come to the office after the actual GRN of goods. Now as
soon as the material arrives and GRN is done the stores issues it to
production for consumption. Now since landed cost has still not be booked
and the item is already consumed what would be the implications?
Pls answer if you have any suggestion if i am using the same item code both
in imports as well as local purchases.
Regards,
Rahul

Hi,
In Your first case,
you can use landed cost functionality to increase your item cost by the freight value and then use service invoice to raise pay the transporter.
regards
Md.nazeer shaikh

Customer wants Inventory Transfer to associate Freight/Landed Cost to Items

This is the situation:
SAP B1 customer wants sells items from warehouse 01 and warehouse 02. Warehouse 01 on eastern side of Canada and Warehouse 02 on Western side.
They would like to transfer certain items to warehouse 02. However, it involves Freight or Landed Costs associated.
The customer may adjust the price of items transferred to 02 or and if they don't they atleast would like to know whether they are taking a loss in selling the transferred items from warehouse 02.
In order to know the cost of items or associated cost with the items in 02, they need to track Freight or Landed costs associated with the transfer to western Canada.
Inventory Transfer does not allow us to associate any shipping charges? or am I missing something here?
Associating shipping charges with inventory transfer seems like such a natural act of transfer through Trucks? why isn't it associated with inventory transfer function in SAP B1?
As usual appreciate all your help?
Thanks.

You may check this thread to have a work around:
Re: Is it possible to have Freight for Stock Tranfer between Warehouses?
Thanks,
Gordon

Landed Cost In Purchase

We are using ECC 6 version. We are creating Import Purchase Order on supplier of material in US$. After Import of material we want to load Custom Duty & Other CHA charges to material.Kindly suggest any way to add the Landed Cost for Import of material so that my value of material will show Actual Import Value + Landed Cost for correct consumtion value of material. Pls guide me.
Thanks & Regards
Mukesh

Hi
Are you using the conditions of taxes for the Import duty. If the import duty is not recoverable then the NAVS is used to load the charge on the material. For the CHA charges you can use standard conditions relating to freight or you can create new ones and use that in the pricing procedure.
Thanks
Anupam Murarka

Landed Costs in B1 2007 A

Hi:
In landed costs in 2005 we used to have a facility to allocate the landed costs and while passing a JV - we used to select the corresponding vendor to pass the necessary entry as an account by pressing shift tab. The new version 2007 does not allow you to select the BP at all. Is there a way when we import we will be able to pass entries to the vendor (for clearing and forwarding expenses invoices) and debit the corresponding clearing and forwarding expenses.
regards
Manian

Hi
I have gone through the documentation on landed costs and it is not that well drafted as is not conclusive.
I have 2 problems:
1. Previously in 2005 you used to add the landed cost and then later create and post the journal, now it seems that once you add it posts automatically. Can we stop this in any way and work on the old method?
2. Currency - in 2005 you would change the currency to USD for example when putting in the ocean freight amount etc and all other costs in USD and then change to local currency for all the other costs which are in the local currency. It does not seem to allow you to do this anymore or is there some tab or button i need to change. We need this function!
Kindly assist as soon as possible.
Regards,
Shaun

Landed cost on import items

Hi
Our cient adds 2 cost in the Raw material cost ( Customs duty and Clearing agent cost)
To manage this I have to added the following cost to my item price for which i am using landed cost functionality.
GRPO: Raw Material Cost ( Qty x Price) = 400 x 100 = 40000
Customs Duty ; = 10000
Clearance agent cost = 5000
The total (10000+5000) is added to item cost through landed cost and my unit price is increased as per requirement.
My concern is 5000 is gone into Clearance agent account created as an landed cost account.
Later AP service is raised for agent which hits my vendor and clearing & forrwarding account.
How to clear the value 5000 in clearance agent cost account.
Guide me if i am following wrong steps for landed cost. Solution will be appreciated

Hi Prince......
This 5000 which was credited during Landed cost you have to debit this during AP service invoice as you mentioned in your thread where clearance agent cost account will be debited and your vendor account will be credited.
This way clearance agent cost account credit at Landed Cost level and clearance agent cost account debited at AP Service Invoice Level will make this account settled.....
Hope this is the right solution for you.......
Regards,
Rahul

Landed cost

Hi,
What is landed cost??
Is it automatically posted when we create a document in SAP Business One 2005?
Is every company suggested to have landed cost?
Thanks

Hi,
Landed costs have to be allocated for imported items in order to calculate their real cost.
Landed costs include the air or sea transportation, insurance, storage, and so on. To assign each imported item to its relevant landed cost, allocate these costs to the various items according to a certain criteria.
The above explanation is taken from the Help.
Generally the landed cost is to be calculated for purchase items other than the material cost like freight, carriage inward etc.,
Let us assume in purchase bill vendor has billed for only Rs.1000/- inclusive of all taxes etc., After wards the cost occured during the transportation say 100/- then the purchasing price will be added with this amount and totally Rs.1100.00.
In B1 you need to handle in such a way that first GRN to be entered then that particular GRN will be opened in the Landed cost document and add the additional cost occured then save it.
Then again open the entered the document entered, and open the "Journal" tab press the create jounral button. This will Open the Journal entry form and pass the JV. As soon as pass the JV, the additional cost will be added to particular item warehouse wise then you can see the item cost in the item master --> INventory tab.
Mostly this calculation will be done for imported materials.
Hope this will help you
Regards,
Venkatesan G.

Landed cost of Material.

In MM pricing landed cost of material is calculated dynamically.Its not stored anywhere.Then if I want take the landed cost into a condition type how can I do it.

Dear pritesh
Landed Cost is Actually the Taxes on PO + Other cost
Other Cost Can be:
Freight %
Freight (Value)
Cash Discount
DD/LC charges %
DD/LC charges(Value)
Labor charges %
Labor chrg(Val)
Insurance% (Local)
Insurance(Val)
So in you pricing procedure let us say that TAXES on PO step is 60 and the last step is 110
So for landed cost calculation you have to just mention from step 60 to step 110
Hope your query gets solved,or let us know what do u want exactly so that we can give u more inputs.
Please award if helpful
Regds
shailesh

Multi-currency in Landed Cost

Hi Experts,
Can we create Landed cost transactions with more than one foreign currency?
Example:
Local & System currency is in Peso
Insurance- Euro
Freight- US Dollars
Other LC is in Peso
If not, do we have a work around for this requirement?
Many thanks.

Hi,
I have escalated this issue to SAp support because one of our customer requesting that and unfortunately, in the landed cost, we could only use one currency that is currency based on GRPO we used. IF you want to have more than one currency, you could use general ledger report or other report and use the currency you like in the revaluation screen by click revaluation button
Rgds,

Landed costs

Hi All,
This is a question on landed costs for imported materials. I have created a PO for an item having a value of INR 650, [ex.rate u2013 48/-] qty u201310. I have created landed costs after a/p invoice. I gave freight amt as 20 usd, customs value was 42.26. In fixed costs I had chosen u2018cash value before customsu2019 as 135.42 and u2018cash value after customsu2019 as 177.68. Here I donu2019t know the importance of u2018factoru2019 tab. Now if I see the landed cost document , it is showing u2018expected customs(FC)u2019 as 202.85, freight it has taken as 31.31, warehouse price as USD 2477 , I had entered u2018actual customsu2019 as Rs.2028.50. On this basis the total is getting changed. How the calculation is happening? Can anybody throw some light on this ?
Regards,

Check this document, How To Manage Landed Costs in Release 2007 A
[https://websmp201.sap-ag.de/~sapidb/011000358700000463992008E.pdf]

Landed Costs- Allocation By Weight.

Hi,
When trying to allocate landed cost by weight the Freight(FC) column which shows the bifurcation of cost amongst individual items distributes the cost in a manner which is difficult to understand.
e.g. If the landed cost is $50
There are two items as follows:
Item 1: Qty 50 , Weight 75 kg
Item 2: Qty 20, Weight 20 kg
The Per unit bifurcation of the cost in the "Freight (FC)" column is shown as 0.79 for Item 1 and 0.53 for Item 2.
Logically, the total cost should be divided by the Total weight and then priority should be given to the item weighing the highest....
However, this is not what is happening.... Instead $50/95 kgs= 0.5263 or 0.53 is the costing apportioned to the lowest weighing item
Can you please explain?
Regards

Hi
Check this EES on Landed Cost
[https://websmp201.sap-ag.de/~sapidb/011000358700006406272006E/CW47_FIN_LandedCost.pdf]

Landed Costs in R/3 - USA

Hello SAP-experts,
we are dealing with a SAP implementation in the USA where the monitoring and handling of "landed costs" is a big issue. I could only find this expression in SAP Business One but not for R/3.
How are other companies in the US handling this issue ? By adding landed costs (freight, duty, etc...) directly to the standard price of the material in MM, using statistical conditions in SD for having the possibility to determine the correct contribution margin or other possibilities ?
I would appreciate to share your experiences for "landed costs" in R/3, especially for how this requirement is maintained for the USA.
Thanks a lot and regards,
Sebastian

Hi erverybody,
this is a double posting. Anybody who can contribute please answer the in the "Landed Costs in R/3" thread in ERP Financials.
Cheers
Karl

Total landed cost of purchased parts

HI Gurus,
I learnt that to get the total landed cost of purchased parts i will have to go for a custom report. Can anybodsy please telle me what tables should i be looking for the following fields. Pleaase help
1) Base price
2) surcharges
3) freights
4) duties
Thanks
Anusha

we do not enter freight and surcharges on the PO, they come with the invoice, the only thing we have on the PO is base price.
Thanbks
Anusha

How to prevent or undo Landed Costs JE transaction in 2007 and 8.8

Hello,
My client prefer Landed Cost module in 2005 version as we can choose not to post JE transaction and Landed Cost is only used for recording purpose. However, in 2007 version JE is automated and Freight charges and other costs have already taken in by AP Inovice. Please advise.
Thanks & Cheers'
Vince

Hi Vince,
I don't think there is option to prevent Landed Costs JE transaction in new version. If your Landed Cost is only used for recording purpose, I would suggest you do not add it to the system. You may put them as remark.
It is no point to undo JE because it is time consuming and error prone process.
Thanks,
Gordon

Analysis of Freight in Subsequent Debits/Landed Costs

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