Landed Costs Journal Entry

[Former Member]

My customer created a Purchase Order, then a GRPO based on the PO.(both in USD) for different items of different item groups.

They then created Landed Costs based on the GRPO in ZAR.

The journal created the following transactions :

Item Group A to Price Diff Account

Item Group B to Price Diff Account

Item Group C to Price Diff Account and to Stock Account.

For Item Group A & B there was no stock account postings.

Any ideas on how to sort this?

Thank you

Janice

[lorna_real · Accepted solution]

Hello Janice,

The Debit posting accounts in Landed Cost transactions depend on the current In Stock quantity of the item.

If the In Stock Qty > = Landed Cost Qty, then only the Stock Account will be used.

If the In Stock Qty < Landed Cost Qty, the landed cost amount will be split between the Stock and Price Difference accounts.

If the In Stock Qty = Zero, then all the landed costs will be posted to the Price Difference account. This is in the assumption that all the items have been sold. Hence, any further costs pertaining to the sold items will be considered as an additional expense to appear in the Profit and Loss Report.

The above scenarios are described in Note 1161695 entitled Price Difference in Landed Cost transactions.

I hope it helps.

Regards,

Lorna Real

[Former Member · Accepted solution]

Thanks Lorna

One last question.

If the item has stock in WH A and 0 stock in WH B, but the Landed Cost is posting to WHB(which has 0 in stock), where will it post to? Price Difference?

Janice

[lorna_real · Accepted solution]

Hello Janice,

It depends on how you manage your stock.

If in your Item Master Data, Manage Stock per WH is ticked, then it will post to Price Difference as it will only look at the Qty in WH B.

But if the Manage Stoc per WH is un-ticked, it will post to Stock since the system will look at the Qty for the entire warehouse and not individually.

Hope this clarifies your issue.

Regards,

Lorna Real

[Former Member · Accepted solution]

Hi Lorna

thanks for all your help.

One last question please.

If the Total for Item A is R100 in GRPO and the Total for Item A is R120 in Landed Costs, it will only post the Difference(R120 - R100) of R20 to the Price Difference Account hey?

Janice

[lorna_real · Accepted solution]

Hi Janice,

Yes, it will only post the incremental charges.

Regards,

Lorna Real

[Former Member]

Hi Janice,

I think these happened due the fact that at the time the landed cost posted to SAP all of item A & B already sold, and some of the the C still exist in the system.

Cheers,

Dody

[Former Member]

Should Item Group A and B have written to the Stock Account as well?

[former_member408229]

Hi Janice,

Could you please check the quantity of the third item in stock is greater than the the quantity in GRPO or not?

I think it is related to this.

Thanks,

Maggie An

SAP Business One Forum Team