Calculating the total landed cost for international goods can be a time-consuming experience. Fortunately the
Microsoft Dynamics GP allows a user to define an unlimited number of landed cost elements based on the extended value of the item, such as Harbor Maintenance Fee (HMF) and Duty percentages, then mix and match these elements to reflect the group of landed costs which should be associated with each item. It also allows the user to identify flat fee and fee per unit based elements.
During the purchasing and receiving activities those default landed costs flow through automatically, reducing the need for manual input. Within the Receiving Transactions Entry window, the user can edit the line item landed costs if needed as well as enter the receipt level landed costs (e.g. freight) which are more appropriately handled as a total against the entire receipt. These receipt level landed costs are easily pro-rated across the line items using Weight, Value or Quantity. By using the combination of line item specific landed costs and transaction level landed costs, the user is able to accurately represent the true cost of an item as it moves into inventory.
These landed costs are associated with the receipt transaction and are subject to the Enter/Match Invoices activity. This ensures both good accounting practices and accurate inventory costing via the Revalue Inventory mechanism which can be enabled on the items and landed cost elements.
Whether you are a distributor or manufacturer for medical devices or any other industry, I hope you find this information helpful. If you are searching for
by Sunny Mattoon, SCM Practice Manager, InterDyn – Remington Consulting -