One of the eases of using an ERP software like SAP Business One is the automated calculations right from the documents and the interlinked data regarding commodity’s units and prices. Landed cost is one such automated calculation in SAP Business One.
In business, whenever there is an importing process, the organisation will end up spending costs on shipping duties, customs, marine insurance, etc. Such expenses are then loaded on the inventory cost. This is done on the basis of the landed cost document.
Here is a demonstration of how we can create such a document and how it is reflected on the prices of the commodities.
Watch the demo
Summary of the video:
In this demo video a document with two commodities is taken into account.
- We can take the landed cost form from
Main menu> purchasing module> submodule of landed cost>
- This Landed cost form contains the details of vendor, broker, and all kinds of Landing costs related to them.
The broker acts as an intermediary between the organisation and the shipping house agent while the respective vendor will input charges and help pay toward the import.
- How do we pay the broker finally?
Take A/P invoice> service document> copy from > and select the respective Landed cost document from the >List of Landed cost.
Then the system will fetch the charges loaded on the landed cost document which can be paid off automatically.
This is how Landed cost will work on SAP Business One.