User Manual - Expected Landed Cost

Owned by Gaurav
Jul 31, 2023
4 min read

Overview 

Vienna provides the functionality of "Expected/Estimated Landed Cost" on the Purchase order. On Purchase Order window, user needs to define the expected cost on 'Expected Landed Cost' tab which will be against the Products only and not for the charges. Based on defined expected landed cost, system will calculate the landed cost distribution during the completion of the Purchase Order and update the Expected Landed Cost distribution on the respected tab. 

After Completion of Material Receipt, system calculates the cost as per expected landed cost and update the same on Product Costs window. 

Purchase Order 

To open the Purchase Order navigate to Menu>Purchase>Purchase Order or search for Purchase Order in search utility available in the menu itself. 

Window is used to create purchase orders. 

Click on the "Purchase Order" option available in the menu. After clicking on that option, Purchase Order will open as shown in the below screen shot. 

After filling information on the Purchase Order and PO line tab, user needs to click on 'Expected Landed Cost' tab and fill the information as per requirement. 

Expected Landed Cost 

It helps to define the expected landed cost for the products as shown below: 

'Tenant', 'Organization' and 'Order' will be auto populated based on header tab. 

User needs to select 'Cost Element' and 'Cost Distribution' from the dropdown values.

Needs to define the 'Amount' for the selected distribution. 

After filling all the information, user needs to click on 'Complete' button from the header. 

During PO completion, System will update the data on 'Expected Landed Cost Distribution' tab as per defined amount on expected landed cost tab. 

Material Receipt 

To open the Material Receipt navigate to Menu>Materials Management>Storage Operations>Material Receipt or search for Material Receipt in search utility available in the menu itself. 

Window is used to create receipts against the purchase order. 

After completing Material Receipt against the Purchase Order, system calculates the product cost as per defined landed cost and update the same on Product Costs window. 

Invoice (Vendor) 

To calculate the landed cost from invoice, user needs to create invoice line for charge and insert the record on Landed Cost tab as explained below: 

To open the Invoice (Vendor) navigate to Menu>Financial Management>Accounts Payables>Invoice (Vendor) or search for Invoice (Vendor) in search utility available in the menu itself. 

Window is used to create invoice against the purchase order/material receipt. 

 User can generate invoice from material receipt by clicking on 'Generate Invoice' button. 

System will insert the data on Invoice tab and Invoice line tab. But user needs to create Invoice line for charge, which helps to calculate landed cost from invoice. 

Landed Costs 

Need to select charge record on invoice line and click on 'Landed Costs' tab. 

User needs to select 'Cost Distribution' and 'Cost Element' from dropdown list as selected on purchase order. 

Select the material receipt record in 'Shipment/Receipt'  field. 

After filling all the details, need to click on 'Process Now'  button for distributing cost. 

Landed Cost Distribution 

After clicking on Process Now button, System auto-push the data to this tab. 

This tab shows the distribution of total charge amount among product lines of shipment/receipt, which is mapped on landed costs tab. 

After completing Invoice (vendor) record, system recalculates the product cost and update the same on Product Costs window. 

Note: Cost Distribution Type “Cost” within the combination of Inventory Move is not available in this current release of VIENNA Advantage Framework. It is planned for future release and this section will be updated upon the release of this functionality. 

Enhancement 1.1 

  1. We enhanced the costing calculation as per the costing elements. 

Case 1: Costing method belongs to PO/MR (Weighted Average PO, Average PO, Last PO) 

  • System will calculate the cost from PO/GRN. 

  • When there is expected landed cost available on the PO then system will calculate the freight as per expected landed cost on the completion of GRN. 

  • When user defines actual landed cost on the AP invoice, then system will only affect the freight in case of difference between expected landed cost and landed cost. 

 

Case 2: Costing method belongs to Invoice (Weighted Average Cost, Average Invoice, Last Invoice, FIFO, LIFO, Standard Costing) 

 

  • System will calculate the cost after completion of AP Invoice. 

  • When there is expected landed cost available on the PO and landed cost is not defined on the AP invoice, then system will calculate the freight as per expected landed cost only. 

  • When there is landed cost available on the AP invoice then system will calculate the freight as per landed cost.