SytelineMaster

The table contains MPS is rcpts with the ref-type = “M”.  rcpts also contain other records that generated by MRP.  To remove any MPS demand, remove rcpts records with ref-type = “M”.

Landed costs may be added to purchase order lines in order to receive estimated costs for freight, duty, and brokerage into the inventory value of an item.  Each of the separate landed cost components may be paid to the purchase order vendor or to a different vendor.  Landed cost capitalization is available for both actual and standard costing.

Landed cost setup requires accrual accounts in the Purchasing Parameters file and a landed cost inventory adjustment account in the Product Code file for those inventory items for which landed cost is to be activated.

To set up Purchasing Parameters: File ->Parameters->Purchasing ->Purchasing Parameters ->Edit->Update

Enter accounts in the following fields – Freight Payable Acct, Duties Payable Acct, and Brokerage Payable Acct

To set up Product Code file account:  Modules ->Inventory ->Item Master ->View ->Files->Product Codes ->Product Code – Miscellaneous

In each product code record, enter an account in the Landed Cost Inv Adj Acct field

To use Landed Cost functionality, add Purchase Order and PO lines.  Assign estimated costs and vendors for freight, duty, and brokerage:

(From PO screen)  View -> Landed Cost ->Edit ->Update

Add a Freight Vendor and Frt Alloc Type.  Freight, duty, and brokerage may be calculated using either percentage of cost or a fixed amount.

These costs are then allocated over all lines on the PO by one of the following three methods:

• Cost:  The total cost for the PO and the proportion of each PO line’s cost to the total cost will be determined.  The estimated landed cost amount will then be allocated across all PO lines according to the same proportion.
• Unit:  The total number of units for the PO and the proportion of each PO line’s units to the total number of units will be determined.  The estimated landed cost amount will then be allocated across all PO lines according to the same proportion.
• Weight:  The total weight for the PO and the proportion of each PO line’s weight to the total weight will be determined.  The estimated landed cost amount will then be allocated across all PO lines according to the same proportion (weight field stored in the Item Master General screen).  The following points are important when using weight:
  • Zero weight items will have a zero landed cost assigned
  • Weight allocations will not be allowed if all PO lines have zero weight
  • Weight units of measure will not be considered, therefore, incorrect allocations could result when weight units of measure are mixed  (ie – lb and kg)

Enter estimated freight charge if the allocation type is Amount or add a percentage if type is Percent

Repeat for duty and brokerage charges

Perform allocation by selecting Activities, Allocate Landed Cost

These amounts will then be reflected in the Unit Cost field on each PO line.  When the PO is received, these amounts will be added to the cost of the item received into inventory if an actual cost item, or be considered in a variance calculation if a standard cost item.

The calculated landed costs may be overridden by the user from the PO line by selecting “Update Costs” in the Edit-Update mode, and entering a new value in the appropriate landed cost fields.  The “Overridden” box will be marked.  Any lines marked as overridden will be ignored on subsequent allocations and the costs for the overridden lines will be subtracted from the landed cost estimate for the PO.

Vouchering Landed Costs

At the time of purchase order receiving, two purchase order receipt records will be created, one for material costs and one for landed costs.  Once an invoice has been received from a vendor, generating vouchers for the landed cost receipts is done in the AP module.

Modules ->Vendor ->Vouchers and Adjustments ->Activities ->Generate Landed Cost Vouchers->Edit ->Update ->Header

Enter the vendor from which the invoice is received.  Enter the invoice number and actual amounts for duty, freight, and/or brokerage charges.

Receipts to be paid by this invoice may be selected by a combination of sorting criteria, including the Selection Method, Landed Cost Type, and Receipt dates

Choose a Selection Method as follows:

• S  to display landed cost receipts for only this vendor
• O  to display landed cost receipts that do not have a vendor assigned
• SO  to display both

Blank to display landed cost receipts for all vendors within the date range

Choose the Landed Cost Type as any combination of (D)uty, (F)reight, and/or (B)rokerage

Enter beginning and ending receipt dates to narrow down the selection

All landed cost receipts that match the selection criteria will be displayed.  Select the lines to be included in this voucher by utilizing the selection options under the edit menu.  Highlight each line to be chosen, and then Edit-Select/Select All/Deselect

Highlighted lines may be updated to indicate the actual amount to be paid to the vendor (Frn Trans Amt) and whether or not variances should be recognized at this time for the receipt (Final = Yes).  A landed cost variance is calculated when the estimated landed cost is different from the vouchered landed cost.  “No” should be selected in the “Final” field when less than the entire quantity is vouchered.  When the balance is vouchered on a later invoice, “Yes” should be selected in order to recognize the variances.  If the entire PO line has not been received and “Final = Yes” is indicated in this screen, an error message will prevent the user from posting this line as final.

After the selection process is complete, select Activity –  Generate Voucher.  Vouchers are posted to the Vouchers and Adjustments file.

In the Purchasing module, the Landed Cost Variance Report is available to assist in analyzing variances.

Modules ->Vendor ->PO Reports ->Landed Cost Variance