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Landed Cost/WIP Adjustment question

  • 13 August 2024
  • 2 replies
  • 77 views

Hi All,

So I’ve got a costing question for a stock item and I hope I can explain it well enough for someone hopefully to help me out!

I currently use landed costs for many additional costs for PO’s (shipping/delivery/surcharges, etc.) and it works great because the parts get received into inventory and then the cost go directly onto them.

I’m having an issue with stock items I have created for ‘outside processing’.  Once they are received in on the PO, they pretty much get moved thru the production order and the parts stay in inventory for about 5 minutes so if we get a landed cost later, the average cost of that stock item never gets updated because the quantity of stock is zero.

I’ve tried doing WIP adjustments to the production order and do not see the costs carrying over.  Does anyone have any other ideas or suggestions on how to get these additional costs into the stock item?

Hi Andy, 

I think this one is similar, in that Acumatica limits your abilities to add LC to items that have moved on to a difference location/phase of processing. We use an accruals process typically, however, your LC team would have to be right on it to catch that which such a short window.

We’ve had some success lately by booking the LC on the original purchase receipt/ transfer receipt knowing that the system will immediately debit the value to P&L. We then posted an inventory adjustment on screen IN303000 - Adjustments to reverse the costs from P&L on to the inventory layer that it should have been (looking at transfers to find the right “receipt nbr” manually, it’s not easy).

We don’t manufacture, so I’m not across those processes in Acumatica, but if your end product has a receipt number that can be identified on the adjustment screen you could add the costs back on there.

This is how we were able to add the costs to the appropriate layer without impacting qty

 

Hi Andy,

As Acumatica is a real time ERP system, the transactions happen on a real time basis and cost is captured as the transactions occur. In your case, as you receive Landed Cost later, and the Stock Item is already used in the process, the variance is captured on to the Landed Cost Variance account. This is the standard process how the system behaves.

If you have other considerations or ideas that you have, you are free to post those on the Acumatica Community ideas page.

 

Thanks,

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