Landed Costs & AP Invoice

[Former Member]

Dear All

We are using SAP B1(Moving Average) and my query is ;

If I create Landed costs and AP invoice respectively,

the costs are posted to G/L Account two times?

Any advice will be very appreciated.

Moo ^^

[Former Member]

Both Landed Cost and AP Invoice are two different documents, each of these documents posts Journal Entry. So the costs are posted to G/L Account two times.

[Former Member]

Dear Sridharan

Thanks for your prompt reply.

However still wondering,

for instance of Customs Duty,

if I create AP invoice and create Landed Costs journal entry,

the Duty has been accounted in G/L account two times.

Is it right?

Moo ^^

[former_member186095]

Hi,

Landed cost and A/P invoice are different in B1. If you use customs duty and it is in the landed cost, then you do not need to add custom duty to the A/P invoice.

Custom duty, handling fee and import charge are usually added in the document as additional expenses or freight if you want the vendor will pay for them. If not, you could use landed cost.

So there will no two times accounted for custom duty in the G/ L Account

Rgds,

[Former Member]

Thanks Jimmy

The problem is we have to make payment for Duty/VAT to freight vendor,

thus we create AP Invoice to freight supplier.

And in a bid to get imported items' overall costs including Duty/VAT/Freight plus item price,

we are creating Landed Costs seperately.

In this case same costs are posted twice into G/L accounts.

If i create AP invoice, I must not create Landed costs?

Regards,

Moo ^^

[former_member186095]

Hi,

If Duty, VAT and Freight are different, you could use Duty using A/P invoice --> type service and then make a payment. In the landed cost, there will only VAT and freight and no more duty so that you will not double posting for Duty.

If after checking you find out that it will be doubled, do not use landed cost anymore for the Duty.

Rgds,

[Former Member]

Thanks, Jimmy

After entering all details into Landed Costs and if i don't post journal entries,

the landed costs are updated to last purchase price or not?

Tks

[former_member186095]

Hi,

If you did not create journal entry, there is no update in the system (price update).

The journal entry creation will update the price. This is an optional in B1 2005A where you can create landed cost only without post a journal entry but in B1 2007A, the posting of journal entry directly created after you add the landed cost.

Rgds,

[Former Member]

Jimmy,

Are you aware of any option to turn off the automatic journal posting of Landed Cost?

We have a client, who want to perform analysis on:

the sales team are accessed with Gross Margin before landed cost.

the logictic team are accessed with how well they control the different Landed Cost.

So, in SAP 2005 SP1, we have written reports for that purpose and it works well without posting the Landed Cost.

Appreciate anyone who can share some thoughts.