Landed costs – overviewLanded costs, which can be linked to purchase transactions, are the total of all costs that are associated with the procurement of an item until delivery and receipt in a warehouse. Landed costs typically include freight costs, insurance costs, customs duties, and handling costs. For specific landed costs, separate business partners can be involved. Landed costs give you insight into the real procurement costs of an item. Landed costs in the procurement process During the entire procurement process, landed costs must be taken into account:
Cost basis for landed costs Variable landed costs Depending on the quantity, variable landed costs can be calculated using one of these methods:
Fixed landed costs Fixed landed costs are calculated using the Fixed Amount method. In that case, landed costs can be specified per:
If a fixed amount is specified on header level, this amount is apportioned to the lines. Landed costs setup Before landed costs can be linked to purchase transactions, you must define the master data. Landed costs on purchase transactions Landed costs are linked to requests for quotation (RFQs), purchase orders, warehouse transfer orders, freight orders, purchase schedules, ASNs, and receipts using landed cost lines. A landed cost line can be:
Matching and approving of purchase invoices Purchase invoices for landed costs can be received, registered, and paid in Accounts Payable, like regular purchase invoices.
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