Landed cost and cogs

hi,
1) i was told that landed cost (inbound freight cost) is part of cogs. may i know why?
what i understand a product cost is made up of direct labour, direct material and manufacturing overhead but no landed cost.
2) distribution cost (outbound freight when selling) is not landed cost. it is not part of cogs. the cost should be reported at where?
can have advice?
thanks
rgds

Hi,
It seems u r mixing landing cost for direct material(Procured) and u r finished goods(produced).
In the case of procured material all the costs incurred to bring the material upto their usage level u can account as the material cost. Landing Cost is one such price. U account the cost of the procurement material as direct cost in the product in which it is consumed.
In the case of produced goods COGM includes Direct MaterialsDirect Labour Production Overehads. COGS is COGM+All Indirect overheads.
Here all Indirect overheads means all the cost as a producer u incurr to distribute to u r customer. Landing cost will be more relevant from the customer point of view. For him landed cost is purchase price(u can understand producers COGS)+ all incidental costs.
Regards
Sudhakar Reddy

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Landed costs and custom duty

Hello
I have an issue with landed cost and customs duty
The actual customs duty when it is corrected is OK when you use one supplier and one good receipt
when it is with many suppliers and many goods receipts and when you want to correct the actualduty the split is wrong it brings the same value for every item and the split is wrong because it must be based on the item line value...
Did anyone experience the same issue is it corrected with an more recent patch or is there a workaround ?
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I am afraid if you need to correct a landed cost with many suppliers and many goods receipts, there may not have any available logic but reverse the entire transaction and redo it. Line item correction for financial transaction may not be possible due to system restriction.
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Gordon

Wrong Calculation of Sales & Administration Cost and COGS

Dear Sir,
We have a scenario where we charge Over-Head on the Labour . Accordingly we have made necessary setting in the configuration . But in the Cost Run , we find that COGS / Sales & Administration Cost is getting calculated wrongly .
To explain it further , say Material Cost is 100 and Labour Cost is 40 . Over-Head defined on Labour is say 50% .
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>   60
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Same is true for COGS , here instead of 200 , correct value must have been 160 .
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Thankyou Jasper,
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Landed costs and price differences

I'm trying to figure out what PS does to adjust for total value discrepancies between an invoice voucher and associated PO. Say on my PO I have a line item with quantity of 2 and unit price of $10. Therefore total value is $20. When I create a voucher, that same line item is now 2x$11 = $22. I approve that voucher for $22. Now I run the Extract Landed Cost batch process. What does this process do to "compensate" for the difference between voucher and PO? Does it change the unit price of that item in inventory from $10 to $11?

Hi, yes you are right: Using this approach ML would use price differences for other batches and increase their value instead of posting them as loss like the initial cost.
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This would be shown in ML like a joint production between the planned product and the scrap material and multi-level variances would be distributed using following an apportionment structure from material master.
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I could provide an example implementation of that.
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Landed Costs and Warehouse Transfer Costs

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Hai Derek Perkins,
Try it out this solution if it satisfies,
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Hi, everybody
I need to calculate landed costs and it seems that I can not use when I built a Goods return.
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When you only Returned partial goods from your Receipt. The Receipt should still be open and you should be able to process the Landed cost. I am not sure why the GR is not showing in the landed costs window.
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Landed Costs in B1 2007 A

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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.
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I have gone through the documentation on landed costs and it is not that well drafted as is not conclusive.
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Hi
Our cient adds 2 cost in the Raw material cost ( Customs duty and Clearing agent cost)
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Later AP service is raised for agent which hits my vendor and clearing & forrwarding account.
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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.....
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Landed costs variance

As far as I can tell SAP landed costs doesn't track record expected landed costs, only actual landed costs. In other words there is not a way using landed costs to track expected landed costs vs. actual landed costs and identify variances? Is there some other way to do this?

When you mention 'expected landed cost' what do you want SAP B1 to do with this value?
The reason SAP B1 tracks actual landed cost is because this value is then passed on to the item unit cost which in turn will affect the gross profit (GP) value in the sales.

Error message [3569-3] when copying landed costs from another landed costs

I tried to correct already existing landed cost by creating another landed costs and copy from the original one.
When add the document I have got the Error message [3569-3] and I am not able to find where the problem is.
Please help.
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Dear Gordon,
sorry for the pictures in local language. This question has been created during my holiday and I had no chance to log in my customer environment so I modified the documentation from my original file.
Nevertheless I thing that I discovered the problem: The correction by using u201Ccopy from landed costsu201Dcannot be full (I mean not 1:1 with the original one).
I made reasonable changes then everything worked properly.
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Jaroslav

SAP Landed Cost crash

Hi,
Appreciate some advice here. Our client has an item A1000 with volume = 58,912,000.
After process a landed cost with this item A1000, SAP cannot open this landed cost.
It will try to load it, and then close the screen with an error message 'Money Overflow'
Has anyone encounter such problem and how do you resolve it?
I have logged a case with SAP support center and am aware that this is a bug to be fixed. However, a solution needs to be available to our client now.
Really appreciate some advice here.

Hi,
Do this problem / error appears after you added the landed cost to a certain GRPO and created landed cost journal ?
Another guess is that you have processed landed cost and created a journal for it and when trying to do that, you've got the error.
If you want to amend the value where the FOB price included landed cost has been created the journal, I think you must manually reverse the transaction using journal entry manual but I am not so sure for this.
Rgds,

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Hi,
It is possible to create documents Landed Costs through the DI API?
From what version it is possible to create?
Best Regards,
Tiago

Hi Tiago,
I think that only the LandedCostsCodes Object is available
From B1 8.8 SDK Help File
The LandedCostsCodes (Select Administration --> Setup -->Purchasing -->Landed Costs.) object enables to define codes for landed costs and their distribution type. These codes are used in delivery notes to divide the landed costs between the items according to the specified distribution type (AllocationBy), such as weight.
Regards,
Vítor Vieira

Landed Cost - copy from Good Received PO

Dear Experts,
I have Created a AP/Reserve Invoice and already done its Good Received PO. Unfortunately, the item prices for all the items were wrong. (Thank GOD i have not done the Landed Costs ).
I tried to Copy the Good Received PO to AP Credit Memo, but this option was not available, and was not also able to copy to Goods Return for the same.
I tried the Vice Versa, i.e. went to the Goods Return and "copy from" but i did not find the Good Received PO for that supplier. I also went to the AP Credit Memo and tried "copy from" Good Received PO, but this option did not have the "copy from" Good Received PO in the list.
I came across an alternative solution which was to create Goods Return and then Copy that to AP Credit Memo. I have already done this.
Unfortunately, when i go to Landed Costs and select "copy from" Good Received PO, the OLD (and wrong) Good Received PO also appears in the list. I tried to reconcile the BP in the BP->Internal Reconciliation->Reconciliation, but still the Good Received PO appears in the Landed Costs "copy from" list.
Is there a way in Landed Costs "copy from" Good Received PO i can have the already reconciled BP's Good Received PO not appear in the list?
Any help will be highly appreciated.
Thank you.
regards,
Feroz Dosani.

Dear Dosani,
Firstly, it is normal that you cannot create an ap Credit Note directly from the GRPO. When the user needs to revert a GRPO s/he needs to close it with a Goods Return.
Secondly, what we have to establish now is why you cannot create a goods return PO based on the GRPO even if the GRPO is still open.
Do you receive any error messages? Is the option G. Return grayed out?
Please, give us some more information and we will try to help.
Thank you.
Marcella Rivi
SAP Business One Forums Team

Landed cost when load has been moved to another warehouse???

Hello experts,
I got the following scenario and need your advice:
1. Goods Receipt created for item X- Warehouse In transit
2. Landed cost entered based on our "best estimation"- Warehouse In transit
3. Inventory transfer from Warehouse In transit to General
4. At that moment, we recieved invoice from our custom agents that confirms landed costs and there is a variation with our initial estimation.
5. If I create a Landed cost document based on 1st Landed cost, the item cost would increase for the item at "in transit" warehouse and NOT where the load actually is...
SO, how could I assign landed costs after the load has been recieved and transfered to another location?
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Thank you

We have a lot of product that comes from overseas. So our In-transit warehouse is the first location the product moves in after taking possesion of the product. If I recieved the goods at the "General Whse" location that could cause confusion among Sales and procurement people t as they would see an inventory that has not arrived to its final destination.
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Regards,

Landed cost and cogs

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