About landed cost codes

In Visma Net, landed cost codes are used to capture various types of landed costs.

For each type of landed costs your company may encounter, create a landed cost code to be used to enter and process that type of landed costs.

Most landed costs are not fixed amounts associated with a specific stock item.

Landed costs may be fees, such as for shipping and handling, whose amount depends on a shipment's weight, volume, or quantity of items.

Accordingly, you need to define how to allocate the incurred amounts among all items in the shipment.

The landed cost amounts are ultimately paid to a carrier or customs office (the landed cost supplier) rather than to the supplier that sells the goods.

In Visma Net, you create and maintain landed cost codes by using the Landed cost codes (PO202000) window.
For each code, you specify the following information:

• How the landed cost amount should be allocated among all goods in the shipment.
  
  Landed costs can be allocated to stock items based on their quantity, volume, cost, or weight.
• What type of landed cost this is.
• Which landed cost supplier provides the services.
  Only suppliers with the Landed cost supplier check box selected in the Suppliers (AP303000) window can be associated with the code.
• What account and subaccount is used to accrue landed cost amounts (the Landed cost accrual account and Landed cost accrual account subaccount).
• What payment terms are used by the landed cost supplier.
• How the landed cost is applied in the Purchases workspace, in the Supplier ledger workspace, or in both workspaces.
  Some of the landed costs, such as freight, are typically known when the goods are received, and can always be specified directly on purchase or transfer receipts in the Purchases workspace. Landed costs of other types may become known later, and can be entered in the Supplier ledger workspace, on an invoice associated with the original receipt.
  Some landed costs can be applied in either the Supplier ledger workspace or the Purchases workspace.
  For details, see About landed cost application scenarios.
• What VAT category is used if the landed costs are service charges subject to taxes.

A landed cost code is not associated with any specific currency, so if multi-currency support has been enabled in the system, landed costs are considered as specified in the currency of the document.

The allocation method of a landed cost defines how the landed cost is distributed among stock items (line items) specified in the document.

When you are creating a landed cost code for specific type of landed cost, you can select one of the following allocation methods:

• By quantity:
  
  The landed cost amount is distributed among the line items in proportion to their quantities.
  
  This adds a greater percentage of the landed cost to the goods purchased in the largest quantities.
  
  If units of measure (UoMs) other than the base UoMs are specified for items, item quantities are calculated with respect to the base UoMs.
  
  CAUTION: Use this option for only purchase orders that include similar items with the same base UoM or similar base UoMs.
  
  Do not use this option for purchase orders that include disparate items with base units that cannot be compared, such as pallets and tons, or meters and pounds.
• By cost:
  
  The landed cost amount is distributed among the line items in proportion to their extended cost.
  
  The extended cost is calculated based on the item's valuation method.
  
  This adds a greater percentage of the landed cost amount to more expensive goods.
• By weight:
  The landed cost amount is distributed among the stock items proportionally to their weights.
  This adds a greater percentage of the landed cost to the goods that weigh the most.
  The weight of the base unit of the stock item is specified on the Packaging tab in the Stock items (IN202500) window.
• By volume:
  The landed cost amount is distributed among the applicable items proportionally to their volumes.
  This adds a greater percentage of the landed cost to goods with more bulk.
  The volume of the base unit of the stock item is specified on the Packaging tab in the Stock items (IN202500) window.

When you add the landed costs to a purchase or transfer receipt or to an invoice with multiple receipts, you can always select specific items whose costs must be updated by the landed costs. On release of the landed cost document, the system generates an inventory adjustment for the stock items listed in the landed cost document.
The amount of landed cost to be added to the cost of a particular stock item listed on the adjustment is calculated according to the allocation method.