Work with landed cost types (DIR64001)

The purpose of this table is to define information about different cost types to be used when calculating landed costs.

Landed costs are those costs, such as freight, duty, insurance and handling costs, that are over and above the price paid to a supplier for the goods. The cost is incurred by the buyer during the transportation of goods from the seller to the buyer.

The terms of delivery code on the purchase order header controls whether landed cost information should be calculated for the purchase order or not.

When goods are received landed costs can be added, changed or deleted. Two types of costs can be entered:

distributed costs
discrete costs

Distributed costs are costs distributed over all received lines. Discrete costs are costs defined for each individual reception line. This table contains information about how discrete costs are to be calculated for an order line.

Note: Distributed costs have to be entered manually, either in the Inbound shipment file when a shipment is created, or in the Confirm purchase order reception note or Receive replenishment line programs.

This table consists of three different sets of information that you define:

Cost types: General information about the cost type
Key values: Key values that are to be applied on the purchase order line for the system to include in the calculation of the cost. For example, different cost values apply depending upon which country the order line is dispatched from, which warehouse it is received to, and which manner of transport is used. The key values in this example are From country, To warehouse and Manner of transport.
Key details: Values for all keys. For example, if the goods are dispatched from Great Britain, to the central warehouse, using manner of transport code SGA, the landed cost is 6 % of the purchase price net price.

Options

Key values

Select this option to maintain the key values to a landed cost type.

Selection fields

Type: Displays the landed cost type code.

Fictitious item: Displays a code from the Item file, indicating the fictitious item to be used when creating accounting transactions for this landed cost type and when writing goods reception transactions.

Key: Indicates if key values are defined for the landed cost code. The key values control when the landed cost should be calculated.

Work with landed cost types (DIR64004)

On this panel you define general information about the landed cost type.

Function keys

Included costs

If Cost allocation method is set to Percentage (PC), you can click this function key to access the Work with landed cost types, Included costs panel.

Type

Fictitious item: Enter a code from the Item file, indicating the item to be used for the accounting and goods reception transactions generated with this cost type. Note: The item entered must be defined as fictitious in the Item file.

Cost alloc. method

Enter a code indicating the default method by which costs are to be allocated. This method will be defaulted when adding key values to this cost type. The cost allocation method determines what the landed cost should be based on. If selecting, e.g., a percentage, the landed cost will be calculated as a percentage of the net value of the purchase order line plus any included costs.

Note: Different cost allocation methods can be defined for each key value.

The value you enter depends on what the corresponding panel value is for your system’s language (defined in the Panel value table and Language table).

Internal cost

Indicate if this cost type is an internal cost. This could be, e.g., labour or resources, for which a supplier’s invoice will not be received and therefore not matched with the purchase order line when the supplier’s invoice is entered in DC1 Financials.

For external costs, i.e. this field is set to NO, a record will be added to the Goods received transaction file, i.e. that the cost can be matched with a supplier invoice when entering A/P invoices in DC1 Financials.

Note: Accounting transactions, to be transferred to DC1 Financials, are created for both internal and external costs.

Calc. at back order: Indicate if landed costs should also be calculated for backlogged purchase order lines.

Work with landed cost types, Deletion (DIR64005)

Note: You are not allowed to delete a landed cost type if that type is used on any purchase order line with status less than 60 (received and ready).

Work with landed cost types, Key values (DIR64008)

This panel displays the existing key values that have been set up in the Landed cost type table for the selected cost type. The key values hold information about the parameters (keys) that control how to calculate the landed costs.

By defining a sequence for each key value, you determine the order in which the system should search to find the applicable key value for a particular purchase order line.

For example:

The landed cost (import duty) on a purchase order line should be based on a percentage depending upon where the goods are dispatched from, where they are delivered to and the commodity code of the item.

For goods dispatched from country HK, received in country GB, with commodity code 123456789, the percentage is 6.

For good dispatched from country USA, received in country GB, with commodity code 123456789, the percentage is 8.

After defining the keys to be used, detailed information, i.e. values for each key, should be entered. This is done by selecting the Key values option on this panel.

Options

Selection fields

Seq: Displays a sequence number indicating the order in which the system will search to find the applicable key value.

Details

Indicates if detailed information has been defined for the keys in the key value. If set to NO, the keys have been defined, but no applicable values for the keys have been defined.

Example if this field is set to NO
The controlling parameters (keys) are, e.g., From country and To country. These keys are defined. But no information about which country and which warehouse the key value applies for are defined.

Work with landed cost types, Key values (DIR64011)

On this panel you define the controlling parameters (keys) for the key value you are adding/maintaining.

Note: The fields cannot be changed if key details exist for the key value.

Sequence: Enter a sequence number between 1 and 999, indicating the order in which the system should search to find the applicable key value.

From

In the fields below, indicate which parameter to use to determine where the goods are being sent from.

Country: Indicate if the country that the goods are being sent from should be used as a key for this key value. If set to YES, the Supplier field must be set to NO.

Supplier: Indicate if the supplier on the purchase order should be used as a key for this key value. If set to YES, the Country (From) field must be set to NO.

To

In the fields below, indicate which parameter to use to determine where goods are to be received.

Country: Indicate if the country that the goods have been received from should be used as a key for this key value. If set to YES, the Warehouse field must be set to NO.

Warehouse: Indicate if the receiving warehouse should be used as a key for this key value. If set to YES, the Country (To) field must be set to NO.

How

In the field below, indicate if manner of transport should be used as a key.

Manner of transport: Indicate if the manner of transport code on the purchase order line should be used as a key for this key value.

By

In the field below, indicate if shipping agent should be used as a key.

Shipping agent: Indicate if the shipping agent on the purchase order line should be used as a key for this key value.

Item

In the fields below, indicate which parameter to use for this key value.

Commodity code: Indicate if the commodity code of the item on the purchase order line should be used as a key for this key value. If set to YES, the Shipment group and Item fields must be set to NO.

Shipment group: Indicate if the shipment group of the item on the purchase order line should be used as a key for this key value. If set to YES, the Commodity code and Item fields must be set to NO.

Item: Indicate if the item on the purchase order line should be used as a key for this key value. If set to YES, the Commodity code and Shipment group fields must be set to NO.

Cost alloc. method

Displays the cost allocation method defined on the initial panel (DIR64004) for this cost type, but this can be changed. The value you enter depends on what the panel value is for your system’s language (defined in the Panel value table and Language table).

Calc. at back order: Indicate if landed costs should also be calculated for backlogged purchase order lines.

Work with landed cost types, Key values, Deletion (DIR64012)

Note: You are not allowed to delete a key value if that key value is used on any purchase order line with status less than 60 (received and completed).

Work with landed cost types, Key details (DIR64015)

This panel displays all parameters defined for the selected key value. The information is used to find the applicable values for calculating the landed costs for a particular purchase order line.

The column headings differ depending on the controlling parameters (keys) defined for the key value.

Options

Selection fields

Cost type: Displays the cost type of the purchase order line.

Sequence: Displays a sequence number indicating the order in which the system search to find the applicable key value.

Cost alloc method: Displays the cost allocation method defined on the detail panel for this cost type.

From: The name of the sub-column depends on what parameter was defined to determine where the goods are being sent from (i.e. Country or Supplier). Lists the applicable country or supplier.

To: The name of the sub-column depends on what parameter was defined to determine where the goods are to be received (i.e. Country or Warehouse). Lists the applicable country or warehouse.

How: Lists the manner of transport code on the purchase order line to be used as a key for this key value.

By: Lists the shipping agent on the purchase order line to be used as a key for this key value.

Item: The name of the sub-column depends on what parameter was defined to use as the key value (i.e. Commodity code; Shipment group or Item). Lists the applicable code.

From: Lists the date from which the entered values are to take effect.

Work with landed cost types, Key details (DIR64018)

On this panel you enter the values of the keys that must be defined on the purchase order line to match this record.

The fields displayed in the top part of the panel differ depending on the controlling parameters (keys) defined for the key value you are maintaining.

When the system is to calculate the landed costs for a purchase order line, the system checks if the corresponding fields on the purchase order line match the information defined on this panel. If the purchase order line matches the information defined here, the cost values, displayed on the next panel, will be used in the calculation.

Click OK on this panel to define the values to be used in the landed costs calculation.

From country

Enter a code from the Country table indicating which country the goods on the purchase order line must be dispatched from in order to match this record.

From supplier

Enter a supplier from the Business partner file indicating which supplier the goods on the purchase order line must be purchased from in order to match this record.

To country

Enter a code from the Country table indicating the country that the goods on the purchase order line must be received from in order to match this record.

To warehouse

Enter a code from the Warehouse table indicating the warehouse in which the goods on the purchase order line must be received in order to match this record.

Manner of transport

Enter a code from the Manner of transport table indicating the manner of transport that must be defined on the purchase order line in order to match this record.

Shipping agent

Commodity code

Enter a code from the Commodity code table indicating the commodity code that must be defined for the item on the purchase order line in order to match this record.

Item shipment group

Enter a code from the Shipment group table indicating the shipment group that must be defined for the item on the purchase order line to in order to match this record.

Item

Enter a code from the Item file indicating the item that must be defined on the purchase order line in order to match this record.

Vendor

Enter a supplier from the Business partner file indicating the supplier of the landed cost. This could be the same supplier as the one that appears on the purchase order but it may be a completely different one.

For example:

if you are creating a landed cost for import duty, the vendor will probably be the government customs and excise department.

For a landed cost for road haulage, the vendor might be the transport company.

VAT based: Indicate if this cost is VAT based, i.e. if VAT accounting transactions should be created when accounting transactions are created for this cost.

VAT handling code

Enter a code from the VAT handling table indicating the VAT handling code that is to be applied to this cost. If the VAT based field is YES and you leave this field blank, the system will retrieve the VAT handling code automatically from the Country/country VAT table.

The system searches in the following order to find the correct VAT handling code:

Business partner VAT table.
Item file, Country/Country VAT information panel (the fictitious item attached to the landed cost type is used.)
Country/Country VAT table
DIS control file

In the Country/country VAT tables the system uses the following values for From country and To country:

From country: The country defined for the dispatch address of the landed cost vendor.
To country: The country defined for the receiving warehouse. If this is a BtB direct delivery this is the country defined in the sales order delivery address.

VAT included: Indicate if VAT is included in the calculated cost. If set to YES, the Include VAT % code field must be completed.

Include VAT % code: Enter a code from the VAT handling table indicating the VAT percentage that is included in the calculated cost. In order to complete this field, the VAT included field must be set to YES.

Calc. at back order: Indicate if landed costs should also be calculated for backlogged purchase order lines.

Work with landed cost types, Key details (DIR64019)

On this panel you enter the actual values to be used in the cost calculation. Different fields are displayed depending on the cost allocation method defined for the cost type.

If the cost allocation method is Weight, Volume or Quantity, the value entered on this panel will be multiplied with the total weight/volume on the purchase order line to calculate the cost.

If the cost allocation method is Percentage, the percentage entered on this panel will be multiplied with the total net value (amount) on the purchase order line.

If the cost allocation method is Value, the value entered on this panel is the actual cost; that is, it is not dependent upon other factors as, e.g., weight or volume.

Active: Displays, in the fields below, the cost values that are currently active. When adding new values, the fields below the Current heading should be completed. To activate the values below Current and update the fields below Active, run the Refresh landed costs menu item.

Value

This field is only displayed if the cost allocation method is set to Gross weight, Gross volume, Net weight, Net volume or Quantity.

Note: If the cost allocation method is Quantity, an input field to the right of the per field is also displayed.

If the cost allocation method is set to gross or net weight or volume, the value entered in this field will be multiplied with the total weight/volume on the order line.

Example if weight/volume:

Cost allocation method is Gross weight.
Gross weight per unit of the item on the order line is 10.
Quantity on order line is 25.
Value in this field is 2.

The calculated cost will be: 10 * 25 * 2 = 500

Note: The unit for the value is displayed to the right of this field. This unit is retrieved from the Unit for volume or Unit for weight fields in DIS control file.

Example if quantity:

Cost allocation method is Quantity.
Quantity on order line is 25.
Unit on order line is PCS.
Value in this field is 2.
Unit defined in the per field on this panel is also PCS.

The calculated cost will be: 25 * 2 = 50

per

If the cost allocation method defined is Gross weight, Gross volume, Net weight or Net volume, the unit in which the values should be defined is displayed.

If the cost allocation method defined is Quantity, enter the unit, from the Unit table, that must be entered on the purchase order line in order for it to match this record.

Note: If Item is used as a key, i.e. the Item field is set to YES on the Key values (DIR640011) panel, the system will check that the unit entered is a valid unit for the item, as defined in the Item file.

% of incl costs

This field is only displayed if the Cost allocation method defined is Percentage. Enter a percentage to be used to calculate the cost. The cost will calculated as:

(Net purchase price on the order line + included cost) * quantity on order line * this percentage

Discrete value: This field is only displayed if the Cost allocation method defined is Value. Enter a discrete value to be used as the landed cost. This value is not dependent upon other factors, such as weight, volume or quantity on the purchase order line.

The currency entered does not have to be the same currency as on the purchase order. If, for example, a purchase order line generates a cost for duty, the customs and excise department sends an invoice for the duty cost. The purchase order might be defined in currency GBP but the currency on the invoice from the customs and excise is in EUR.

Valid from: Enter the date upon which the values that have been entered are to take effect.

Valid to: Enter the date upon which the values that have been entered cease to apply.

Current: Displays, in the fields below, the cost values that are currently active. When adding new values, the field below should be completed. To activate the values below Current and update the fields below Active, run the Refresh landed costs menu item.

Value

This field is only displayed if the Cost allocation method defined is Gross weight, Gross volume, Net weight, Net volume and Quantity.

Note: If Cost allocation method is Quantity, an input field to the right of the per field is also displayed.

If the Cost allocation method is weight or volume, the value entered in this field will be multiplied with the total weight/volume on the order line.

Example if weight/volume:

Cost allocation method is Gross weight.
Gross weight per unit of the item on the order line is 10.
Quantity on order line is 25.
Value in this field is 2.

The calculated cost will be: 10 * 25 * 2 = 500

Note: The unit for the value is displayed to the right of this field. This unit is retrieved from the Unit for volume or Unit for weight fields in the DIS control file.

Example if quantity:

Cost allocation method is Quantity.
Quantity on order line is 25.
Unit on order line is PCS.
Value in this field is 2.
Unit defined in the per field on this panel is also PCS.

The calculated cost will be: 25 * 2 = 50

per

If the Cost allocation method defined is Gross weight, Gross volume, Net weight or Net volume, the unit in which the values should be defined is displayed.

If the Cost allocation method defined is Quantity, enter the unit, from the Unit table, that must be entered on the purchase order line in order for it to match this record.

% of incl costs

This field is only displayed if the Cost allocation method defined is Percentage. Enter a percentage to be used to calculate the cost. The cost will calculated as:

(Net purchase price on the order line + included costs) * quantity on order line * this percentage

Discrete value: This field is only displayed if the Cost allocation method defined is Value. Enter a discrete value to be used as the landed cost. This value is not dependent upon other factors, such as weight, volume or quantity on the purchase order line.

Valid from: Enter the date upon which the values that have been entered are to take effect.

Valid to: Enter the end date upon which the values that have been entered cease to apply.

New

In the fields below, enter the new values to be applied. This is useful if new cost values should apply within, e.g., one month. Enter the values in the fields below and define the valid date range.

Value

This field is only displayed if the Cost allocation method defined is Gross weight, Gross volume, Net weight, Net volume and Quantity.

Note: If the Cost allocation method is Quantity, an input field to the right of the per field is also displayed.

If the Cost allocation method is weight or volume, the value entered in this field will be multiplied with the total weight/volume on the order line.

Example if weight/volume:

Cost allocation method is Gross weight.
Gross weight per unit of the item on the order line is 10.
Quantity on order line is 25.
Value in this field is 2.

The calculated cost will be: 10 * 25 * 2 = 500

Note: The unit for the value is displayed to the right of this field. This unit is retrieved from the Unit for volume or Unit for weight fields in the DIS control file.

Example if quantity:

Cost allocation method is Quantity.
Quantity on order line is 25.
Unit on order line is PCS.
Value in this field is 2.
Unit defined in the per field on this panel is also PCS.

The calculated cost will be: 25 * 2 = 50

per

If the Cost allocation method defined is Gross weight, Gross volume, Net weight or Net volume, the unit in which the values should be defined is displayed.

If the Cost allocation method defined is Quantity, enter the unit, from the Unit table, that must be entered on the purchase order line in order to match this record.

% of incl costs

This field is only displayed if the Cost allocation method defined is Percentage. Enter a percentage to be used to calculate the cost. The cost will be calculated as:

(Net purchase price on the order line + included costs) * quantity on order line * this percentage

Discrete value: This field is only displayed if the Cost allocation method defined is Value. Enter a discrete value to be used as the landed cost. This value is not dependent upon other factors, such as weight, volume or quantity on the purchase order line.

Valid from: Enter the date upon which the new values are to take effect.

Valid to: Enter the date upon which the new values cease to apply.

Work with landed cost types, Key details, Deletion (DIR64020)

Work with landed cost types, Included costs (DIR64023)

This panel displays all records from the Landed cost type table, with the exception of the type being maintained. A mandatory input capable Included Y/N field is displayed on each line and will be set to YES if there is a record in the Landed Cost Inclusion file for this type, otherwise it will be set to NO.

Type: Displays the various cost types that can be included in the calculation of this cost type.

Included

In the fields below, indicate which cost types you want to be included in the calculation of this cost type.