Transactions that update Landed Costs
The Transactions that affect Landed Costs are as follows:
Purchase Ledger | Stock Control | Sales Order Processing | Purchase Order Processing |
Any Transaction using an Analysis Code flagged as Update Landed Cost can be allocated to Landed Costs using the function below: | All transactions, i.e.: | Sales Orders | Purchase Orders |
Any Transaction using an Analysis Code flagged as Update Landed Cost can be allocated to Landed Costs using the function below: | Can use all Landed Cost types except 'Transactional' | Sales Orders | Purchase Orders |
Landed Cost function allocates P/L transactions to Sub Analysis Landed Costs | 'Transactional' is used for Movements when the Transaction Option Adjust Landed Costs Values is selected, Quantity is always 0, Value only is entered. | For Sub Analysis Stock items with Landed Costs. | For Sub Analysis Stock items with Value, % and Fixed Landed Costs. |
Directly posted Orders/ Movements
If an Order is being fully processed on entry (i.e. not Batched), Committed Costs are ignored, and only Actual Costs are calculated.
Batched Movements (and Orders)
If a Movement in, either a Stock Movement (or a POP Order) is batched, the 'ordered in' quantity will be used to determine the Committed Landed Cost.
The Committed Landed Cost is displayed on the Quantity tab card on the Sub Analysis window.
Note that the 'ordered in' quantity may also be referred to as the 'outstanding to deliver' quantity.
When processing the Batched Transactions, the point at which Landed Costs are calculated depends upon the setting of the Transaction option Update Stock on Order:
If this is not selected, Committed Landed Costs are not calculated (wait for the delivery point).
If this is selected, the 'ordered in' quantity is updated, and this value is used to calculate the Committed Landed Costs.
Editing
Editing a Batched Order may change the 'ordered in' quantity, and therefore the Committed Landed Costs.
When delivery of a Purchase Order is made, the Physical quantity is updated, the change in Physical (i.e. the quantity delivered) is then used to calculate Actual Landed Costs. The Committed Landed Cost is simultaneously reduced by the value of the quantity delivered.
Processing the Batch directly
Transactions processed straight from the batch list window reduce Committed and increase Actual Landed Costs.
Using the Detail function
If processing through the Detail window:
If the 'delivery quantity' is greater than the 'outstanding to deliver' quantity, this:
reduces the Committed Landed Costs by the 'outstanding to deliver' quantity
increases the Actual Landed Costs by the 'delivery' quantity.
If the 'delivery quantity' is less than the 'order' quantity, this:
reduces Committed Landed Costs
increases Actual Landed Costs
and is treated as a part delivered Order. If the Order is then completed, this:
reduces the Committed Landed Cost by the 'outstanding to deliver' quantity (i.e. to zero)
will not change the Actual Landed Costs.
Both values (Committed Landed Costs and Actual Landed Costs) are posted to the Quantity tab card and Landed Cost tab card - these are shown as Committed Costs and Total Cost.
Examples:
A batched Purchase Order for 10 items has a cost of £150 and Committed Landed Costs of £64.
The Committed Landed costs are made up as follows: £40(Fixed) + {10*£1.65(Value)} + {10*£15*5%(Percentage)} = £64
If 12 items are delivered, then the Committed Landed Costs is cleared to zero and the Actual Landed Costs are £68.80 made up as follows:
£40 + (12 * £1.65) + (12 * £15 * 5%) = £68.80
If instead 5 items are delivered then the Committed Landed Costs becomes £12 made up as follows:
(5 * £1.65) + (5 * £15 * 5%) = £12
and the Actual Landed Costs are £52 made up as follows:
£40 + (5 * £1.65) + (5 * £15 * 5%) = £52
because the whole Fixed Landed Cost is incurred as soon as the delivery commences.