Landed Costs Alloc. Account

Hi Dear;
which account i have to choose for the Landed Costs Alloc. Account?
is it the real account in the chart of account (expenses account) like insurance or shipping or its a stock expenses account?
could you send me an example for the JE:
1- that generates the Landed cost
2- the Normal insurance or shipping accounts
best regards;

You may check this thread:
Landed costs
Thanks,
Gordon

Similar Messages

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

Landed cost - gl accounts connected to it

good morning
creating a landed cost from Goods receipt PO,
items tab (1st time) "Projected and Actual Customs" are the same, so put $ value at Actual
nothing entered on "Costs" tab,
So we "add"
and, get the error message "custom allocation and custom expense accounts have not been defined" (message 3569-7)
the GL's have been set up for "landed cost" and have checked the GL account determination and nothing is blank
what/where are we missing.
Thank you

Hi Jill2 Byford
Go to Administration >>> Setup >>> Inventory >>> Custom Group to define Custom allocation and custom expense accounts.
Hope this helps,
Son.

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 Cost - Invalid Account Code

Hi ,
I have checked properly that each and every account is mapped correctly .
But when i perform that operation there comes an error : 'Invalid Account Code '
Is there any more declaration needed . Please suggest me what to do ?
Thanks
Ashish

Hi Ashish.....
Whichever accounts you mapped into the Freight screen you just check tose accounts whether they are proper or not. Just check those accounts are present in your Charts of accounts or not because sometimes we delete the account but there code remains as it is in settings screen because of which we get unwanted errors......
Try to put the currency of all the accounts All Currencies.
Regards,
Rahul

Need solutions for Budget, Landed cost and difference in 2005b and 2007B

Hi all,
Need help for the following scenarios
1. How to define budget for Purchase order and cost centers
2. Landed Cost in SAP B1 2007 how do we do? I am getting an error message stating that Landed cost allocation account is not defined....
3. Difference in 2005B and 2007B
Regards
Shashi

Thankyou Jasper,
Landed cost problem has been solved.
Regarding Budget set up My client need Budget at costcenter level. i.e Cost center wise they want the budget. As of my knowledge to do this we need to activate Account segmentation right?
Without doing that is there any other way where we can set Budget cost center level also?
one more thing, there is a check box of purchase order, Goods Receipt and Accounting at the time of setting up Budget in General setting? what it is for?
Regariding difference in 2005b and 2007B I was not able to get documentation on this.
Regards
Shashi

Invalid account code in landed cost

when i on click on add button msg displayed is "invalid account code" but all the account are mapped correctly in landed cost master and in G/L account determination, what could be the reason for this msg, plzz shed some light on this i am really stuck on this for last 2 days but couldn't reach to any solution.
any sort of help would be appreciated.
Thank you
varun

hi,
check Landed Cost - Invalid Account Code
Error while entering Landed Cost
Thanks,
Neetu

How the Landed Cost Absorption will be null

Dear ,
I create a new PO amount is 1000 $ with landed cost shipment is 50 $ . After received the shipment system creates the following GL entries.
Receiving Entry :
DR Accrual Account = 1050
     CR Accrual Account = 1000
     CR Landed Cost Absorption = 50
Material Entry :
DR Inventory Account = 1050
     CR Accrual Account = 1050
After create a invoice and match with receipt and shipment the "Accrual Account" is "0" which is ok. But what about Landed Cost Absorption which is still reamins the balance in GL "50" $ after complete the full cycle. Please advise when or how the Landed Cost Absorption will be "0"

Hello
Please accept my appology for this delay,
I know it is too late for this reply, but I just following this discussion for the general benefit of this community (sure, if you still following this, it will be greate)
Generally, by referring to Oracle Support Document ID 782920.1, Landed Cost Absorption account should not be zero if the following conditions are met:
1. Default Charge Account (in Receiving options of LCM enabled organization) is different that account used for Landed Cost Absorption Account, and
2. Estimated LC amount differs than Actual LC
Accordingly, the opposite is true, you have to use the same account for LCM charge and absorption and LC estimated amount(s) are the same as actual LC actual charge amounts
For complete explanation just review the following oracle support document:
How Landed Cost Management and Accounts Payable Accounting flow (Doc ID 1310019.1)
Regards

Landed Cost Question

I understand the Landed Cost procedure but I am not sure how this cost is added to the A/P invoice
Example: I receive an Invoice from a supplier ABC for 1000 units at £1.50 cost each = £1500 but on the same invoice I have Other Costs of £300. So my Total Invoice to pay is £1800.
The problem I have is how to process this Invoice because
1. I raise an Item Order no 1946 for 1000x1.50= £1500
2. Goods are Received = Goods receipt procedure
3. Via Landed cost Procedure I add the £300 to costs and it shows me that the Cost per Item is now 1800/1000= £1.80 per item
4 Now, if I turn my Item Order 1946 into an A/P Invoice, this will miss the extra £300 that my supplier charged and I am not sure how to handle this situation.
Thanks for your help
Robert
I am obviously missing the point about the correct Landed Cost procedure

Thank you Jimmi and everybody.
I managed to work out the issue and my understanding is as follows:
The proper procedure for an A/p Invoice with landed costs should be:
1. Raise A/P invoice as normal (Order/Goods Receipt) and add the additional cost Using the Freight/Other Costs option. This will Credit the Creditor with the correct ammount and the main ISSUE is that the Freight/Other costs in the setup, should be set to the Landed Cost Suspense Account.
2. Go to Landed Cost Procedure and add Freight/Other costs as described in the manual - this procedure will automatically Credit the Landed Cost Suspense Account and increase the Stock value accordingly (as set up in the landed cost setup - by quantity or % etc)
there seems to be a lot of confusion about this procedure but I think that this is correct and there is no need for any adjustment journals.
thank you
Robert

Error while adding landed cost G/L account 5207010003 needs DR assignment for dimension 1; fill in DR-related fields

Error while adding landed cost G/L account 5207010003 needs DR assignment for dimension 1; fill in DR-related fields

Hi Rajesh
Go to System Initilization => General Settings => Cost Accounting => Check the Dimension1 has Block Posting.
Relase the Block and add the Document it will add.
With Regards
Balaji

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

Customs Allocation Account and Customs Expense Account

Hi All,
Can any one tell me what is the use of Customs allocation Account and Customs Expense Account.
When and where these accounts will be used.
If possible provide with examples of journal entry.
Regards
Shashi

Hi,
Custom allocation iaccount are used with the landed cost.
It's defined in Setup > Inventory > Custom Group. You will have to define both the Custom allocation account and the Custom Expense account. On the Item Master Data, the custom group is found on the Purchasing tab.
In Purchasing/AP > Landed cost, if the field Custom Affects Inventory is checked then your custom allocation account will be credited and the inventory account will be debited (inventory value goes up).
If the field Custom Affects Inventory is unchecked, the custom allocation account will still be credited but the custom expense account will be debited instead.
Hope this help
Regards

Allocate Landed Cost to Goods Receipt before Item is sold

Hi
Our Client would like to have a prompting to remind User to allocated Landed Cost before selling the Item as Users always make mistake and sold items before allocating landed cost to Goods Receipt resulting wrong posting of accounting entries to variance accounts.
Kedalene Chong

Hi,
we are discussing this topic also here in Austria, as a customer usually ships the goods the same day when having received, and the AP Invoice is posted some days later.
Our suggestion is a batch job that is used for period closing, which checks all shipments that were made before having posted the regarding AP Invoice, to bring a control report that sums the entries according to Item "Set G/L Accounts by" and the setup of freight costs for distribution method, so that this amounts can be balanced manually (or even better automatically) within G/L from variances to the according COGS accounts.
Basically we need the distinction between preliminary costs (goods are shipped without having posted AP Invoice) and final costs (AP Invoice is posted).
For the moment only manual journal entries from G/L account variances to COGS is possible.
Regards
Martin Fürst

How to reverse landed cost on open A/P Invoice

Dear Support
Please be so kind to assist wiht the following issue: I need to reverse landed cost from a open A/R Invoice # 72223
Purchase Order # 125025
Goods Receipt # 16426
Landed Cost 15332
A/P 72223
If i select the A/P invoice and copy to A/P Credit memo and preview the journal remarks first, the following error occurs
"Quantiy falls into a negative inventory"
My Question however are if I do proceed with this function, will this rectify the landed cost?
Please view the screen shots attached for investigation as well as the journal remarks on each document
Inventory Posting List:
The reason for not posting to the stock account is because the AR Invoice was been done before the landed cost has been processed:
At the time of landed cost there were no stock on hand, this has been the reason why the amount has been posted to the Price difference ledger account and not the stock account.
Your response will be much appreciated
Kind regards,
Ilze Fourie

Dear Nagarajan
Thank you for your response, much appreciated!
Attached please find the screen shots
Kind regards,
Ilze Fourie

Reversing Landed Cost document with more than one vendor

Hi Experts,
Reversing Landed Cost document with more than one vendor:
My client can reverse a landed cost document with One Vendor, but cannot with multiple vendors. I have also tested this in 8.8 PL10. Here is a brief description:
Created Landed cost by selecting 2 vendors in the Vendor field.
After you picked one vendor, you go to the vendor code/name again then choose another vendor you
need, once you picked, the system will ask you whether you want to delete the previous data, then
you say no, after then you will see the vendor name became "different vendors" and code be "********"
(on the vendor tab: you will see two vendors)
To Reverse Landed Cost we do the following with Landed Cost documents that only have one vendor:
I can copy from the Landed Cost document (on the right-bottom corner) while creating new one with
zero amount to reverse, which is ok; but for multiple vendors, the list of vendors onlyshows one of
the vendors for Good Receipts & Landed Cost.
Cannot copy from a Landed Cost document wioth more than one vendor to reverse this Landed Cost.
To be albe to copy from a previously created Landed Cost document (with multiple vendors) as you
can with one vendor to reverse the transaction.
Can this functionality be added to future versions?

Take a look at business area and groupings in they payment program settings...
I am not sure what version you are on but the following link for 4.7 should provide some valuable information...
http://help.sap.com/saphelp_47x200/helpdata/en/01/a9be64455711d182b40000e829fbfe/frameset.htm
http://help.sap.com/saphelp_47x200/helpdata/en/01/a9be64455711d182b40000e829fbfe/frameset.htm
Grouping Open Items and Individual Payments
Wherever possible, the payment program will always group items together for payment.
The payment program can only group together open items for payment if the open items in an account have the same:
1. Currency
2. Payment method in the item
3. Bank in the item
4. Contents of the grouping fields (if a grouping key is specified in the customer or vendor master record)
You can also pay open items from different company codes together, as well as customer and vendor line items.
Items in an account are not grouped together if you:
1. Make payments separately per business area. This procedure entails separate payments being created per business area.
2. Want to make individual payments
Items in which a payment method is specified are not grouped with items in which no payment method is specified.
You define the required grouping key in the IMG for Financial Accounting under Accounts Receivable and Accounts Payable -> Business Transactions -> Outgoing Payments -> Automatic Outgoing Payments -> Payment Method/Bank Selection for Payment Program -> Define Payment Groupings.
In our system, if the business area is the same, there will be one ZP document with one line with a posting key of 25. Otherwise there will be many individual 25 posting key lines with.

Landed Costs Alloc. Account

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