Purchase Orders > Landed Cost Tracking >Transaction Processing > Calculate New Landed Cost

Calculate New Landed Cost

You use this program to calculate the estimated new landed cost for inventory items. The program enables you to produce a report of these costs as well as the option to update the warehouse unit cost of the item.

Calculate New Landed Cost

Field Description
Start Processing

Select this to calculate the new landed costs according to your selections.
Print Select this to print the information currently displayed in the Report output panes.
Save Form Values This option is only enabled in Design mode (Automation Design). Your selections are saved and applied when the program is run in automated mode.

Form values and defaults are applied at operator level. They are not saved at role or group level.

Calculation Options

Field Description
Function  
Produce report

Select this to print a report indicating the new landed cost of stock items.

The report is generated according to your selection criteria.
Update warehouse costs

Select this to update the inventory warehouse costs by the new landed cost calculated.

You can only select this function if your inventory Costing method is defined as Standard, Average, or Last cost (Inventory Setup).

Costs are not updated if one or more cost elements (including the LCT merchandise price) for a stock code results in a zero value, or if the new landed cost exceeds the current cost by the margin specified at the Acceptable cost percentage variance - To update warehouse costs option (Purchase Orders Setup).

In either case, a report indicating the rejections is produced.
Update warehouse options These options are only available if you selected the Update warehouse costs option above.
Update all warehouses with LCT costs

Select this to update the cost of an item in all warehouses with the calculated landed cost.

If you do not select this option, then costs are updated only for the warehouse defined as the Warehouse to use (Stock Codes) for the item.
Cost change journal reference Your entry here is the reference printed on the Inventory Journal Report if the warehouse unit cost of the item is updated with the new calculated landed cost.
Posting information  
Period This indicates the period and year to which the transactions are posted if you selected to update the warehouse unit cost of the item.
Include other costs  
include fixed costs

Select this to include fixed costs when calculating the total landed cost of an item.

You can only select this option if you selected the Include other costs to calculate new cost option (Purchase Orders Setup).

Fixed costs for an item are included when updating warehouse costs only if there are other elements attached to the route for the stock code.
Include minimum charges

Select this to include minimum charges when calculating the total landed cost of an item.

You can only select this option if you selected the Include other costs to calculate new cost installation option (Purchase Orders Setup).
LCT current costs variance

Enter a percentage by which the inventory cost of the item must differ from the LCT cost before it is printed on the report (i.e. a stock code is only included on the report if the total unit landed cost differs from the current inventory cost by the specified percentage).

[Note]

This option does not prevent a cost update from taking place - it only reduces the size of the printed report.
Stock codes Indicate the stock code(s) for which you wish to calculate the landed cost.
Route codes You can only access this option if you selected the Produce report option.
Route code selection
Option Description
Standard route Select this to print only the standard route on the report.
All routes Select this to print all routes on the report.
After processing completed

These options are displayed within programs that can be automated. They enable you to indicate the action you want to perform once processing is complete (see Automation Design).

LCT New Landed Cost Report

This pane displays the results of the processing function you selected once processing is complete (unless you selected the option to close the application from the After processing completed section).

The estimated new landed cost for inventory items are displayed according to the calculation options selected.

The value printed to the right of the Current inventory cost value is the difference between the Total LCT value and the Current inventory cost calculated as a percentage of the Current inventory cost. The calculation is: ((Total LCT - Current inventory cost) / Current inventory cost ) x 100.

Rejection Report

This pane displays the results of the processing function you selected once processing is complete (unless you selected the option to close the application from the After processing completed section).

This report is only produced if you select the Update warehouses costs function, and the Route code selection is Standard route, and the program was unable to do the actual update.

The warehouse/stock code combinations not updated are displayed together with reasons for the update having failed.

Notes and warnings

Restrictions and limits

  • The Calculate New Landed Cost program calculates the new landed cost based on a quantity of one. Changes made to shipment advices do not affect the calculation performed by the Calculate New Landed Cost program.

    The expected costs are calculated from the calculation codes and because there is no link to the associated purchase order at this stage, purchase order values are not included in the calculation.

  • Although you have the option to update the warehouse unit cost of the item, the primary function of this program is to produce a report detailing the expected landed cost of the item.

Coding considerations

  • The new landed cost of an item comprises the LCT merchandise price (defined within the Browse on Supplier Stock Code Cross Ref program) as well as all the cost elements attached to that item in the standard route.

    These cost elements optionally include fixed costs and minimum charges, providing you include other costs when calculating the new landed cost (Purchase Orders Setup) and that you selected the Fixed costs and/or Minimum charges options.

eSignature considerations

Electronic Signatures provide security access, transaction logging and event triggering. This enables you to increase control over your system changes.

Access to the following eSignature transactions within this program can be restricted at Operator, Group, Role or Company level. You configure this using the eSignature Setup program.

eSignature Transaction Description
PO LCT Calculate New Landed Cost

If access is denied to this eSignature, you cannot calculate a new landed cost in the Calculate New Landed Cost program.

Inserting Application Help

You would typically follow this procedure to display help for the current program in a customized pane that can be pinned to the program window.

Information includes step-by-step instructions for the various functions available within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program.

  1. Open the program for which you want to insert application help into a customized pane.

    This functionality is only available for a program that has panes.

  2. Right-click any form field.

    You can also click the triangle menu icon that appears in the title area of a pane.

  3. Select Insert Application Help from the context-sensitive menu.

    The application help appears in a pane within your program. You can reposition the pane using the docking stickers or pin it to the program window.

Removing the Application Help pane

If you no longer want to display application help in a pane for your current program, you can simply remove it.

  1. Select the Close icon in the right-hand corner of the application help pane.

  2. Confirm that you want to delete the pane.