Landed Cost - How to Handle Complex Calculations

  • 12 November 2020
  • 3 replies
  • 441 views

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Hi All,  

One of my team members, Michelle Hesketh, created a ‘How To” blog article on Landed Cost and Complex Calcuations.  I hope you all find this information helpful.

 

Imagine you run a company headquartered in Puerto Rico with an additional location in Jamaica. When you ship items from Puerto Rico to Jamaica, what should be a simple cross-company sale suddenly becomes a massive landed cost calculation. Every item you ship to Jamaica is subject to freight, customs, duties, and tax charges – and that drives up the average price of those items. 

 

Problem: It is not uncommon for a “straightforward” landed cost transaction spreadsheet to contain 70+ lines, resulting in hours of manual entry!

Solution: With just a little bit of initial work, it is easy to configure landed costs in Acumatica, saving hours of work and reducing errors.

 

Summary of Steps (for more detail, see the full guide below)

  • Create a new landed cost code
  • Link a vendor to your landed cost code
  • Decide how you want to enter landed costs
  • Enter your landed costs
  • Allocate the landed costs
  • Verify accuracy
  • Sit back and enjoy an easier landed cost transaction process

Here is your step-by-step guide to completing those tasks in order.

https://www.dynamictechservices.com/acumatica-landed-cost-and-complex-calculations/


3 replies

Userlevel 2

It would be nice if there was a way to apply landed cost based on various things such as an items customs classification. At one point I had the landed cost allocated “by weight” and then updated the ‘weight’ of the items on each landed cost transaction based how much of the landed cost should be allocated to them. It’s in no way ideal or a reasonable way to do it but I had an import scenario to push the ‘weights’ in so that if the receipt had a lot of various items with different duty rates, I wouldn’t have to enter multiple landed costs. 

Currently, we use the Container Tracking customization from IIG and it has custom classifications for each item and the classifications have their set tariff and duty amounts to autogenerate the landed cost lines and overrides the allocation to match the entered customs and tariff rates. It works but then there are all the extra fees that Customs charges that still need to be allocated to the purchase receipt lines. 

I also would like a customization simply to allow custom landed cost application methods. They would each need to have a custom field for each item for every application method. I would love to see the option of application by “Duty Rate” or “Tariff Rate”.

How would you handle entering Landed Cost bill for a PO with multiple items at different duty rates and percent ?

 

@rsoranno  DO you know the answer yet? Any one can help on this?

How would you handle entering Landed Cost bill for a PO with multiple items at different duty rates and percent ?

 

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