13.3. Landed Costs Distribution

In some situations you can receive an invoice representing additional costs (e.g. transport or manipulation expenses, and/or other taxes) for an already invoiced receipt. In order to allocate these additional costs to the received products you need to create an additional cost invoice. The vendor invoice line representing additional costs must contain a non stockable service or expense type product.

After saving the vendor invoice and the additional cost line, on the Invoice Line tab, from the Invoice (Vendor) window, the Landed Cost subtab will become available The tab is used to enter the receipt, receipt line or receipt product to which the additional cost amount is allocated. The following fields are available:

• Cost Distribution - determines the rule by which the cost is distributed. The amount will be distributed proportionally for each instance generated by the receipt, receipt line or receipt product, depending on the amounts for the selected attribute:

  • "Cost"

  • "Quantity"

  • "Weight"

  • "Volume"

  • "Row"

  • "Custom Tax" - Custom Calculation Basis * % custom duty associated to the product, where the Custom Calculation Basis is made up of the following RON amounts:

    • Merchandise Vendor Invoice amount (the invoice associated to the material receipt the distribution is done for) exchanged into RON at the rate selected on 13the document;

    • Other amounts that were distributed via the landed cost to the material receipt that is subject to the current distribution (exchanged into RON at the rate selected on the document). Only those landed costs with the Custom Tax Base checkbox will be considered;

    • Only the processed landed costs will be taken into account (i.e. the invoices that have landed costs and that have been completed).

  • Cost Element - will be used to register the additional cost. The element must be of "Material" type;

  • Description - relevant description for the additional cost allocation;

  • Shipment/Receipt, Line. Product - determines the products instances for which the additional cost will be distributed;

  • Distribute Costs button - the cost are distributed by product (instance) proportionally, depending on the the cost distribution base;

In order to see the results, go to the Landed Cost Allocation tab. Here you will find a checkbox called Custom Tax Base. This is used for a distribution algorithm for custom duties based on some percentages that have been pre-defined at product level. As such, in order to determine the Base used to run the tax/commissions calculations, use this checkbox for those landed costs that have formed the Base (transport, handling, insurance, etc.) and that need to be operated before the taxes/commissions.

Note: This tab is only visible if you have selected the Show Advanced Tabs checkbox in User Preferences.

Delete Landed Costs

Starting with version 2.2, the process called "Delete Cost and Posting" has been improved to offer the possibility to erase from costs and general ledger those vendor invoices that have formed landed costs. In general, this process can also be used to erase the Vendor Invoice postings, irrespective of their type. The documents whose effects (posting and costs) that can be erased through this process are:

• Vendor Invoice (AP Invoice);

• Material Receipt - Vendor Invoice matches (MatchINV);

• PO - Material Receipt matches (MatchPO);

• Shipments (Material Delivery);

• Inventory Move (Material Movement);

• Internal Material Receipt / Internal Use Inventory (Material Physical Inventory).