Some important configurations:
The landed costs have to been activated: Inventory > Configuration > Settings > Landed Costs
For the landed costs to work, the products should be in a product category that uses the FIFO or AVCO costing method AND that has its inventory valuation on automated.
Herea video with the full flow.
Example used in the video:
Product MRI Stock is a stockable product in a category with the FIFO costing method and an automated inventory valuation. (Check the account stock properties).
STEP 1: The product is simply purchased (no landed costs involved).
Purchase Order for 5 quantities at a Unit Price of $10. When the goods enter the stock (reception has been confirmed), my inventory valuation will be at $50 for that product and the following journal entries are created:
|110200 Stock Interim (Received) = Stock Input Account||$0||$50|
|110100 Stock Valuation = Stock Valuation Account||$50||$0|
STEP 2: The vendor bill is created (no landed costs involved)
STEP 3: You receive a bill from the custom containing the landed costs.
Custom fees is a service and is a landed cost (see configuration on the product form).
The bill is done for 1 "unit" of custom fees at a price of $10. The bill is than posted and after that you can create the landed costs, edit it, link it to the reception (WH/IN), decide on the split method, compute the landed costs and validate it. When computing the landed costs, you will see how the landed costs will be able to see which valuation adjustments will happen at the moment that you'll validate the landed costs.
|Product||Original Value||New value||Additional Landed Costs|
|MRI Stock (qty =5)||$50||$60||$10|
The journal entries created are the following:
|110100 Stock Valuation = Stock Valuation Account||$10||$0|
|110200 Stock Interim (Received) = Stock Input Account||$0||$10|
Extra remark concerning the landed cost in internal transfers (V12, V13 & V14):
Instead of simply using an internal transfer between warehouse, you need to create a transit location with a location type either Customer location or either Vendor location. In addition , you need to create two operations with the type Delivery and Reception to manage the transfer between the warehouses and the transit location . You could also create a route where the transfer between Warehouse A to the transit location will be a delivery and where the move from the transit location to the Warehouse B will be a reception.
If there is a chance that goods can be lost between locations, or if costs can be incurred, or there is a need to plan or schedule a move of goods between these locations, we do not recommend using internal transfers, but rather two operations - DELIVERY and RECEIPT.
/!\ If you use this workaround you will have to force your client to use AVCO as it does not work with the FIFO costing method.
FYI, feedback was given about it already.
Landed costs in Manufacturing:
For V12 & V13:
When finishing the MO the destination location should be from the type 'vendor location'. A second step will be needed to put the manufactured product back in your (internal) stock.
When finishing the MO you'll be able to directly add the landed cost.