Landed Cost GL account allocation

[Former Member]

Hello,

Im trying to setup landed costs to calculate the price of each item individually after freight forwarding, customs brokerage and duty fees.

Im confused on what allocation method I should choose.

Also, I need to create a GL account for landed cost allocation. Where in the chart of accounts  would the new GL go? Expenditures?

Thanks in advance!

Yaniv

[former_member694429]

Hello,

Hope this message finds you well.

When I am raising the PA Invoice for a Landed Costs document, the B1 only find the Landed Costs document for the Broker (1 broker) and for the defined currency.

However, in my specific case I have the following Scenario:

• Cost Of good – Vendor of goods – Price in USD
• Shipping Cost – Shipping service supplier – Price in EUR
• Insurance – Insurance supplier – Price in Local Currency (Mozambican Metical)
• Port Tax – Taxes of Port Supplier - Price in Local Currency (Mozambican Metical)
• Import taxes – Government of the Republic - - Price in Local Currency (Mozambican Metical)

As you can see, I have several vendors (ou suppliers) in several currencies.

How can I manage this scenario in SAP B1?

Best regards

[frank_wang6]

It should be under COGS.

The flow is like this.

Let's say u create a COGS account - Freight Ocean.

You first create a A/P invoice against Freight Ocean, let's say $1000. Debit Freight Ocean $1000, Credit A/P $1000

And then you use Landed cost module, (create a landed cost code to use Freight Ocean). When you put $1000 here on landed cost, it will credit $1000 on Freight Ocean and Debit your inventory $1000.

So after the above two transactions, your Freight Ocean is zero out, and AP credit 1000, and Inventory Debit 1000.

This is how it works.

[Former Member]

So I can create a GL in cost of sales drawer labeled "landed costs allocation" and use that as the allocation account?

Also, which allocation mehtod do I use? By quantity?

[frank_wang6]

Landed cost normally contains a few parts, like Ocean Freight, In Land Truck, etc. You can create a few of them. And create a few of landed cost code to match them.

Allocation is something you will need to ask your accounting department, different product and different cost will have different practices. This is why SAP provide u different options.

Frank

[Former Member]

IN other words, create separate GL accounts in cogs for each lender cost type?

thats all that goes in the allocation field?

[AlfoHF]

Hi Yaniv.

I shared a link for a document, it explains all things about Landed costs.

Check this.

http://www.tegrous.com/wp-content/uploads/2011/07/HowTo_Landed_Costs_2007A_B1.pdf

Best regards.

Saul.

[frank_wang6]

In the allocation, you can use multiple landed cost codes (each is related to different COGS account).

Just remember you use A/P invoice to put money in those COGS account, and use Landed Cost to take them out and average to Inventory.

So at the end, the Landed cost COGS account are zero.

Frank