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]

Similar Messages

  • 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

  • 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

  • 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

  • Landed Cost - Weight/Volume information at Row Details on [Items] tab

    Hi, Experts,
    While copying GRs into landed cost, if [Costs] tab, we have weight or volume setup on "Allocation by" , then the Row Details on [items] tab need to be filled, otherwise, will have error msg.
    Is there any way, the information can install from Item Master Data automatically with those information has entered?
    Thanks.
    Emi

    Hi Emily,
    You may try Formatted Search to bring those value from Item Master if you have all info needed.
    Thanks,
    Gordon

  • Weight and volume in Landed cost!

    Hi, everybody
    Can you tell me about Weight and Volume in Landed cost.
    I want use load and unload expense, i use Allocation By is Weght and volume, But when i choose expenditure in Detail Tab as Yes.
    An error appear: Variable costs can be added only if you split landed cost
    Can you explain for me! Thank you very much

    Hi Tien,
    please, check go to the 'Form settings' on the landed cost window, select 'volume' column and you will find the 'volume' field is blank. Input the correct 'volume' value and the landed cost can be allocated by volume. Test it and see if your issue is solved.
    Regards,
    Wesley

  • 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

  • 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.

  • Project in Landed Cost

    Hi All
    In 2007 B Landed Cost document, the system will pass a automatic
    journal entry. i am not able to select project field in the row level
    of the landed cost document.
    In client business scenario, he will import all goods based on projects
    and he wants to know how much revenue and expenses are getting on that
    project. Could you suggest me how to follow the scenario for Landed
    Cost.
    One landed cost Document can be based on multiple GRPOs  created for different projects.
    Ex:-
    Having 4 GRPO's with project A, B, C and D respectively.
    When i am making a landed cost document.
    I will select all this 4 GRPO's into one landed cost document.
    My price distribution will be based on weight and volume.
    At present Journal Entry
    Raw material -- --- -- -- --- --- Debit
    Transport    -- --- -- -- --- --- Credit
    I Need
    Here i need to distribute the price project wise
    Journal Entry
    Raw material -- --- -- -- --- --- Debit for project A
    Raw material -- --- -- -- --- --- Debit for project B
    Raw material -- --- -- -- --- --- Debit for project C
    Raw material -- --- -- -- --- --- Debit for project D
    Transport    -- --- -- -- --- --- Credit for Project A
    Transport    -- --- -- -- --- --- Credit for Project B
    Transport    -- --- -- -- --- --- Credit for Project C
    Transport    -- --- -- -- --- --- Credit for Project D
    Edited by: Siva Reddy P on Jan 19, 2009 5:38 AM

    Hi
    Sir
    What i want to say is that for every landed  cost u have to assign a G/L account 
    and for every G/L account (expenses and revenue only ) u can predefine the Profit Centres 
    so for example the landed cost is 'A' you can assign 'X 'G/L Account to it so u can assign  ' Y 'Profit Centres  to 'X' G/L account it means whenever you SELECT  landed cost 'A'  in Landed  document with 100 Rs it will hit Profit Centres ' Y '
    You have assign distribution rule actually  so if  Y1  and Y2   are Profit center and u have to assign landed cost IN 20: 80 ratio u can do it by defining a distribution rule
    Avtar Singh Saini

  • Landed Costs through DI API

    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 - 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.

  • 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

  • Expenditure in Landed cost!

    Hi, evrybody!
    Can you teach me about expenditure in landed costs. I raded help file but i don;t clrear. Can you give  me an example about it!
    Thank you

    Hi Tien,
    1. Firstly in the details tab when you select yes only then the expenditure tab will be applicable in the Items tab.
    2. You should select the value to determine whether to allocate landed costs for the current Row( Item).
    3. If yes then you will have to choose on which Price list the calculation would be based on in the details tab
    4. Expenditure is always Fixed Cost + Variabel cost ( Which will be greyed out if you are using perpetual Inventory system)
    5. In the Fixed cost column of the costs tab enter the allocation by there are in all 6 choices . You need to choose the choice which is applicable. You can also create new landed cost from this tab.
    6. Once you enter the allocation by and the amount it will be reflecting in the expenditure column of the items tab.
    Also note that no calculations can be done without the FOB price.
    Nagesh.

  • Blue lines in document "landed costs"

    In my document for landed costs I get blue lines by two articles. Why do they turn blue? What is the problem with them?

    The BaseUnit of the articles was standing on "NO" instead of "Yes". The articles were cheese, so they need a weight and "YES".
    Thanks.

  • Fixed Asset procedure For acquirsion Throught Landed Cost

    I Have To Import A Fixed Asset From Foreign Vendor.But How Can i Able Charge Landed Cost To That Asset.means Simple Landed Cost procedure just Cost the Charge to Inventory item But How To Fixed Asset
    Regards
    Naveed

    Naveed,
    Landed cost only supports inventory item in current system design.  You need to do it manually for Fixed Asset.
    Thanks,
    Gordon

Maybe you are looking for