Landed Costs- Allocation By Weight.

[Former Member]

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

[Former Member · Accepted solution]

Hi

Check this EES on Landed Cost

[https://websmp201.sap-ag.de/~sapidb/011000358700006406272006E/CW47_FIN_LandedCost.pdf]

[Former Member · Accepted solution]

Hi Sridharan,

Thanks for the reply!

I am not able to open up this link.....says access denied

Regards.

[Former Member · Accepted solution]

Give me your mail and I shall send the doc to you.

[Former Member · Accepted solution]

Hi Sridharan,

Thanks for your reply.

vishalkairaglobal.com

Regards

[Former Member · Accepted solution]

Hi Sridharan,

Can you help?

send to vishal(at)kairaglobal.com

Regards

[Former Member · Accepted solution]

Document sent to your EMail

[Former Member · Accepted solution]

Thanks Sridharan.

Will revert in case of issues

[Former Member]

Freight(FC) is in Foreign Currency. Are both of these two items in FC? Sound like only the second item is.

Thanks,

Gordon

[Former Member]

Hi Gordon,

Yes both items are in FC.

Landed costing does not allow you to post items with different currency in the same entry....

I hope i have answered your query....

Regards