Using Landed Cost.

Landed Cost can be entered using the Purchase Order if the cost is from the same vendor, or by the Landed Cost function if from a separate vendor.

Landed Cost can be entered using the Purchase Order if the cost is from the same vendor, or by the Landed Cost function if from a separate vendor.

Option A) Landed Cost from original PO vendor

Additional fees on the vendor bill for the original purchase order for the inventoried items can be converted to Landed Cost.  This approach will increase the Inventory value and ultimately the Cost of Goods Sold for the items on the PO, as opposed to a regular expense.

1. Open the Purchase Order window
2. Click Invoice on toolbar
3. Select Other Amounts tab
4. Enter Description for Landed Cost (e.g., Insurance) and Amount
5. Click the Landed Cost box
   Note: You will be prompted to save changes before displaying the Landed Cost pop-up window.
6. Follow the instructions below to Allocate Landed Cost amount
7. You can create the Purchase Invoice once the Landed Cost has been posted

Option B) Landed Cost from another vendor

The Landed Cost function also allows you to load items from Inventory Receipts, Transfers and/or all Receipts for one or more Purchase Order(s). For example, you may receive a bill from one vendor for freight charges for a load that need to be allocated over multiple receipts and/or transfers.

1. Choose Landed Cost from the main Inventory menu
2. Click New on toolbar to create a new Landed Cost session
3. Select the Vendor and enter the Landed Cost amount from the bill
4. Click Load Items to select the associated inventory transactions to link the new Landed Cost.  Users can load items by Receipt(s), Receipt(s) from PO, Inventory Transfer, and Inventory Assembly sessions.

1. Use the instructions below to Allocate Landed Cost.
2. You can create the Vendor Bill by checking the “Create Bill” box.  The bill will be created when the Landed Cost is posted.

Allocating Landed Cost

1. Load the Landed Cost window using option A or B (above)
2. Click Allocate By to spread the Landed Cost amount by Quantity, Value, Weight, or Volume.
3. Adjust the Allocation % or Amount for each item.  The Landed Cost Factor can be used to change the way cost is allocated to a specific item.

1. Click Post once you have balanced your Landed Cost entry and are ready to update inventory. If you are not ready to post, you may save, this will save your entry but it will not post to any accounts.