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| LANDED COST |
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Establishing landed costs for the products that a company handles can be a tricky business. All
businesses that import or export need to understand what the total cost of goods is for what they
are buying or selling. In order to accurately calculate the landed cost, all factors beyond
the obvious primary price must be considered. Calculating landed cost is critical in understanding
what a product actually costs and therefore what is can be sold for.
Landed Cost or "True Cost" is the total cost of a product once it has arrived at the buyer’s door. This list
of components that are needed to determine landed costs include the original cost of the item, all
brokerage and logistics fees, complete shipping costs, customs duties, tariffs, taxes, insurance,
currency conversion, crating costs, and handling fees. Not all of these components are present in
every shipment, but all that are must be considered part of the landed cost.
Landed Cost Support has been added for Receipts generated from WorkPlace. When a “Landed Cost
Group ID” is added to an Item/Site combination in Dynamics GP, WorkPlace will calculate the Landed
Cost for “Purchase Receipts”, based on the default “Landed Cost Group ID” for the Item-Site combination,
and add it to the Dynamics GP Receipt when created from a WorkPlace Receiving Wizard or Manual Receive
Session. If there is no default “Landed Cost Group ID” set for the Item-Site combination in Dynamics
GP, the Dynamics GP Receipt will still be created within WorkPlace and no Landed Cost information will
be passed to the Dynamics GP Receipt.
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| When Needed: |
- We need to know what the true costs of purchased items to ensure we are purchasing most cost-effectively
- Our purchased items often include a lot of taxes and fees that can dramatically increase the true cost of an item
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