Landed Cost Type
Landed Cost Types window allows to define different types of Landed Costs that can be assigned to Goods Receipts and therefore allocated to the products included in the receipts.
Landed cost is the total cost of a landed shipment including purchase price, freight, insurance, custom duties and other costs up to the port of destination.
Openbravo handles landed costs not as part of the "unit cost" of a product but as a part of its total cost.
Landed Cost Types can be defined either as a "Product" or as an "Account" (G/L Item). Besides that a distribution algorithm can be define to configure the way landed costs are going to be allocated to products.
Some fields to note are:
- Name: that is the name of the landed cost type, for instance "Insurance", "Freight", "Duties" or "Taxes".
- Landed Cost Distribution Algorithm: that is the algorithm to be used to distribute or allocate Landed Costs among all the receipt Lines related to that landed costs.
- Openbravo delivers a "Landed Cost Distribution Algorithm" that is "Distribution by Amount" as part of the costing adjustment feature.
This algorithm distributes landed costs to receipt lines proportionally by receipt line amount.
- The main feature of a landed cost distribution algorithm is the java class which includes all what's required to implement it.
- Landed cost distribution algorithm needs to be loaded through a "System" dataset therefore can be available to every Client of the Openbravo instance.
Once applied "Distribution by Amount" costing algorithm is listed in this window.
It is recommended to apply this type of system datasets to the (* organization) therefore are available for every organization of the Client.
If no record is shown in this window please contact your "System Administrator" to ensure that the "System" datasets have been properly applied by using the following "ant" command: ant apply.module -DforceRefData=true
A landed cost type can either be created as an "Account" or as a "Product".
- "Account" landed cost types requires a GL Item to be created, for instances "Duties".
- G/L Item needs to be configured as "Enabled in Financial Invoices" and related to a tax category, therefore this type of landed costs can be booked through a purchase financial invoice.
- "Expense" type ledger account used while posting a purchase financial invoice including a landed cost of this type are the ones setup in the Accounting tab of the G/L Item.
- "Product" landed cost types requires a Product to be created, for instance "Freight", therefore this type of landed costs can be booked through a purchase invoice.
- "Expense" type ledger account used while posting purchase invoice including a landed cost of this type are the ones setup in the Accounting tab of the Product.
Full list of Landed Cost Type window fields and their descriptions is available in the Landed Cost Type Screen Reference.