How to Calculate Landed Cost for items in Drop-Ship Order . In Normal Practice Yes its Not Possible since drop-ship orders are shipped directly from the supplier to the customer without passing through your warehouse
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Is it t Possible to calculate Landed cost of item of a Drop Ship Order ie; Need to add the cost to Item
Best answer by TimRodman
I ran through a scenario with a Non-Stock Item on a Drop Shipment, then added a Landed Cost document into the mix. See screenshot below for order of transactions and General Ledger journal entries produces.
Two challenges that I ran into:
- By using Landed Costs, it’s using the same GL Account as the regular Item (see Line #9 below). Would you want to use a separate Non-Stock Item and no Landed Cost transaction so you can control the GL Account?
- The Landed Cost amount does not automatically get passed along to the Customer on the AR Invoice.
An Idea:
- Don’t use the official Landed Cost functionality
- Use separate Non-Stock Items for tracking each type of Landed Cost
- Set the GL Account on those Non-Stock Items to a Balance Sheet account, something like “Unbilled Landed Costs” to catch Landed Costs that still need to be billed to Customers
- Manually add those Non-Stock Items to the Customer AR Invoice
- Add the “Unbilled Landed Costs” GL Account as a Cash Account so you can reconciled it like you do a Bank Account, matching up the ins and outs.
Have you found a way to automatically add the Landed Cost charges from Vendors to Customer Invoices?
We use Landed Costs with Drop Ship and NonStock Items. This cost is included in Daily Sales Profitability Report. In 2024 R1 if we correct an invoice from a drop ship sales order and its respectively receipt (with landed) it decreases the cost of the item with landed and in the corrected invoice only reflects the cost of the item.
We have to make a negative landed cost prior to the invoice correction, correct the invoice and then enter the landed cost again.
Is there a better way to do this? In 2022 R2 this does not happen.
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+1
I ran through a scenario with a Non-Stock Item on a Drop Shipment, then added a Landed Cost document into the mix. See screenshot below for order of transactions and General Ledger journal entries produces.
Two challenges that I ran into:
- By using Landed Costs, it’s using the same GL Account as the regular Item (see Line #9 below). Would you want to use a separate Non-Stock Item and no Landed Cost transaction so you can control the GL Account?
- The Landed Cost amount does not automatically get passed along to the Customer on the AR Invoice.
An Idea:
- Don’t use the official Landed Cost functionality
- Use separate Non-Stock Items for tracking each type of Landed Cost
- Set the GL Account on those Non-Stock Items to a Balance Sheet account, something like “Unbilled Landed Costs” to catch Landed Costs that still need to be billed to Customers
- Manually add those Non-Stock Items to the Customer AR Invoice
- Add the “Unbilled Landed Costs” GL Account as a Cash Account so you can reconciled it like you do a Bank Account, matching up the ins and outs.
Have you found a way to automatically add the Landed Cost charges from Vendors to Customer Invoices?
Translate
Hi:
The issue that we have is with the Correct Invoice functionality.
If we correct an invoice that comes from a Drop Ship PO with Landed Cost, it creates a Credit Memo with the full cost, but the new invoices does not include the landed cost part, only the items cost.
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