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Landed Cost dont apply for sold item

  • 20 March 2024
  • 4 replies
  • 65 views

Hello All,

Normally we will get the Landed Cost around 3 - 5 days after receiving goods.

If we sell products during that time, the item cost will exclude the Landed Cost.

Then, when entering the Landed Cost for the sold items (that item does not exist in the system anymore), the amount number of this Landed Cost will go to an expense account.

In this case, the cost of goods sold will be wrong.

Has anyone got this situation?

 

The additional case for those who use the module Construction. When the amount number of this Landed Cost goes to an expense account, there is no project ID. Therefore, you can't allocate this expense to a different project.

 

Thank you in advance for any ideas that will be posted.

Many thanks,

Yên Chi

4 replies

K
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Unfortunately the easiest solution I can see is to delay the release of Invoice/Update IN (and by extension, the Dt COGS entry) for T+5 days until your landed cost adjustment is released.

C
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We have the same issue, as this (error/feature?) also applies to transferring inventory from the location the landed cost applies to a further distribution point. Our solution has been to have a standard rate card we book landed cost against. When the actual bill arrives the difference between actual and rate card goes to P&L. We monitor this difference to ensure our rate card is reflective of actuals.

Not ideal, but a better solution than instant expense of landed cost. 

C
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HI @chrisgold That sounds a best solution with current system. Thank you for your sharing!

May I ask if you use the Module Construction?

When the actual bill arrives the difference between actual and rate card goes to P&L that doesnt show Project. Therefore we didnt know that expense belongs to item of which project so cant allocate cost of actual bill correctly

 

 

C
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Hi @chidao, can’t help you with project accounting sorry. 

What we do see with the difference is just the ‘adjustment’ document hitting the P&L with the text description of the inventory item. I’m not aware of a simple way to get from adjustment back to LC from the user interface. Once you find the LC Document you’d have the purchase receipt and thus the PO… jumping through a couple of hoops you could probably link Adjustment to LC Document to Purchase receipt to PO on a GI to save the manual search

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