Landed Costs Process

Forex Purchases

Periodic Spot Rate allows you to put in an exchange rate for a specific period. The Periodic Spot Rate will always override the Daily Spot Rate. 

Landed Costs

Purchase Order:

a) On the purchase order, select the currency that you want to purchase in then select your item and it will pull through the price from the Foreign currency Price List that you have set up. This will also default to the Exempt tax code because the supplier has been marked as a foreign company.

b) To input Landed costs simply click on Add Landed Costs. Once you type in the product, the price will pull through from the Foreign Currency Pricelist and the tax code will default to Exempt. You can also add other landed cost items such as warehouse fees which could also be in base currency.

c) On the Purchase Order you will see the item being purchased as well as the Landed Costs. These are shown in their applicable currencies.

However if you print the purchase order it will not show the Landed Costs, it will show just the item that is being purchased. The Landed Costs at this stage is just an estimate as you have not yet received the documents from those suppliers.

Reports:

a) There are 2 reports in Augtool that allows you to keep track of the Landed Costs. One is the Itemised Ordered Landed Costs which shows you all the expected Landed Costs. Here you can view which Landed Costs have not yet been GRV’d or was fully or partially GRV’d.

b) The other is the Itemised Landed Costs which shows only the Landed Costs that have been incurred on GRV’s, both partially and fully. Here you will be able to see which suppliers to expect documents from, to invoice. This report helps you to reconcile the incurred landed costs to the invoices from your landed cost suppliers. This report also shows you which orders have been invoiced or returned.

Landed GRV: 

Once the goods are GRV’d the full cost of the item together with the landed costs will form the total cost of the product and this total cost is what will be accounted for in the Financials. Now the stock weighted average is inclusive of all the landed fees.

Landed Purchase Invoice:

Once the supplier documents are received and you have reconciled it to the landed costs in the Itemised Landed Costs Report, you can create a purchase invoice and save as draft. You can then link the GRV’s to that invoice, edit the document to check prices etc and post to move the expected landed liability to the creditor.

You can also view the value of landed costs yet to be invoiced, on the General Ledger Report.  A nil balance will imply that there are no outstanding invoices. If there is a balance outstanding that would imply that there are GRV’s that has yet to be invoiced.

Report - Product Rolling Balance:

This report enables you to view the correct weighted average cost of the product to be able maximise profit with strategic pricing.

Landed Cost Expected Weight on GRV

This was an enhancement carried out in the system where previously the Landed Cost on the GRV always inherited the Unit Column. However sometimes payment to the supplier is made on the quantity loaded out of the suppliers warehouse and not on the quantity going into your warehouse. Therefore the GRV Landed Cost Unit column will now inherit the Expected Unit instead of Unit. This happens only if there is a valid unit above 0. 

Landed Cost Template

The system has been enhanced to be able to select a Landed Cost Template when editing a purchase order. It has a new Permission. The template is created under Landed Template in Purchasing tab. On the purchase order select and load the applicable template. 

The total of Landed Cost for each item has also been added to the lineitem popup on PO, PI and GRV.