Landed Costs Parameters (tclct0100m000)

Field Information

Effective Date

The date on which you define new parameter settings.

The date and the previous settings are posted to history enabling the user to view previous settings.

Description

The description or name of the code.

General Settings

Landed Costs Search Date

The purchase transaction date used to search for valid landed costs that can be linked to the purchase transaction.

Select one of these values:

• Order Date
• Receipt Date
• System Date

Default value: Order Date

Note: The Order Date and Receipt Date are the Planned Receipt Date for purchase schedule lines.

Recalculate Landed Costs

The way in which landed costs are recalculated after modification.

Select one of these values:

• Automatic

  Landed costs are automatically recalculated, but the Manual and Modified landed costs are skipped.

• Interactive

  LN asks you whether the landed costs must be recalculated, after which you can specify whether the Manual and Modified landed costs must also be taken into account.

• No

  You must manually recalculate landed costs in the Recalculate Landed Costs (tclct2800s000) session.

Default value: Automatic

Note: For purchase schedule lines, landed costs are always automatically recalculated.

Method of Calculating Average Landed Cost

Specify how the average landed cost is calculated.

Note: 

• To calculate an item's standard cost, the average landed cost can be added to the average purchase price.
• If this parameter is Cumulative Purchases, use the Equate Balance of Receipts with Inventory Level (tdipu0201m000) session to equate the cumulative receipts with the inventory on hand. Only if you run this session regularly, you can calculate realistic average prices for items.
• You can view average landed costs by item in the Item Actual Landed Costs (tclct3600m000) session.

Allowed values

Cumulative Purchases

The average landed cost is based on the following:

• The price of a new receipt.
• The average price of the cumulated purchases up to the time of the new receipt.

      
APN = ((PR * QR) + (APO * CRO)) ÷  (QR + CRO) 

Current Inventory

The average landed cos is based on the following:

• The price of a new receipt.
• The average price of the current inventory level.

      
APN = ((PR * QR) + (APO * ILO)) ÷ (QR + ILO)
  

• APN - Average landed cost (new)
• APO - Average landed cost (old)
• PR - Price of the new receipt
• QR - Quantity of the new receipt
• CRO - Cumulative receipt quantity (old)
• ILO - Inventory level (old)

Old (current) inventory considers the existing inventory on hand minus the not yet matched and approved receipts. Consequently, the average cost is based on financially matched and approved purchases.

If the method is set to Current Inventory and the APN calculation outcome is negative, the average landed cost is equal to the latest landed cost.

Example

Method of Calculating Average Landed Cost: Cumulative Purchases

Current values for item K:

Cumulative purchase receipts	20 pcs
Average landed cost for cost component A	5 euro
Average landed cost for cost component B	4 euro
Total average landed cost	9 euro

New receipt for item K, all landed costs are invoiced.

Received quantity	2 pcs
Landed cost line for cost component A	7 euro
Landed cost line for cost component C	3 euro

New average landed cost:

• Cost component A

  (2 x 7) + (20 x 5) / (20 + 2) = 5.18 euro

• Cost component B

  (2 x 0) + (20 x 4) / (20 + 2) = 3.64 euro

• Cost component C

  (2 x 3) + (20 x 0) / (20 + 2) = 0.27

New values for item K:

Cumulative purchase receipts	22 pcs
Total average landed cost	9.09 euro

Apply Landed Costs on Request for Quotation

If this check box is selected, landed costs are linked to requests for quotation (RFQs).

Default value

LN defaults this value in the Request for Quotation (tdpur1600m000) session. If this check box is cleared, you can still select the Apply Landed Costs check box in the Request for Quotation (tdpur1600m000) session.

Write Landed Costs for Purchase Push Schedules

If this check box is selected, landed costs are linked to push schedule lines.

If, on push schedule line level, intake and on order bookings are not required for landed cost lines, you can clear this check box. This increases performance and reduces data growth.

Note: 

For push schedules, goods are received against a blanket warehousing order. After receipt, the goods are assigned to (the) schedule line(s) with the oldest unfulfilled immediate requirement or firm requirement in the Purchase Schedule Lines (tdpur3111m000) session. Because no direct link exists between a receipt and a specific push schedule line, landed costs for push schedule line receipts are not based on the landed costs for push schedule lines. Therefore, the landed costs for a push schedule line receipt are defaulted from the Master Data.

For pull schedules, the schedule receipt landed cost lines are always based on the generated schedule line landed cost lines.

Caution: 

Once open push schedule lines are available in the logistic company, which means they have a status other than Canceled, Invoiced, or Processed, you can no longer change this parameter.

Landed Costs on Backorder based on

The method to retrieve landed costs for backorders.

Note: This parameter is verified only when a backorder is created.

Allowed values

Original Line

Landed costs for backorders are copied from the line from which the backorder is generated.

Master Data

Landed costs for backorders are retrieved from the Master Data. Consequently, LN searches for an active landed costs set for the backorder.

Apportion Fixed Amounts for Purchase Orders upon

Apportion Fixed Amounts for Purchase Orders upon

For landed costs that are specified as a Fixed Amount, this field determines from which moment onwards LN apportions the fixed amount of the purchase order header to the purchase order lines.

Select one of these values:

• Approval

  Apportioning starts at purchase order approval.

• Order Entry

  Apportioning starts at purchase order entry.

Default value: Approval