Landed Costing in AX 2012.

Landed Costing in AX 2012
In this blog I’m going to show how the Landed Cost (Import) is done and how it works in Microsoft Dynamics AX
Mostly companies want to add third party vendor costs (freight, duty brokerage…) to purchase order transactions in order to calculate a true landed cost value in inventory. Microsoft Dynamics AX 2012 has two approaches that can be used to adjust the inventory value of purchases:
• Add an automatic markup to the cost of inventory transactions on purchase order.
This approach approximates the average value of extra charges to selected inventory transactions. The advantage to this approach is that it is simple and automatic. The disadvantage is that you do not get an actual landed cost per item, just an approximated cost spread out over all items.
o Navigate to: Procurement and sourcing > Setup > Charges > Automatic Charges.
o Create a new Auto charge code at the Line level.
The example below is set for all vendors and all items but it can also be set for a Vendor group, Item Charges group or even for specific items and/or vendors. This example will cause 3 percent to be added to all purchase lines and will be posted to the GL code specified by the FREIGHT charge code. Make sure that the Freight code offset is set to ITEM so that all charges go to the item and not paid to the vendor. Note: this will only affect new purchase orders and will not affect existing orders.

o After creating a purchase order line, view Financials – Maintain charges and you will see that the charge has been added to the line.

• Adjust the value of posted PO transactions after the fact.
This approach provides for an actual landed cost per inventory item purchased however, it requires more work and there may be a time lag between the original invoice and the updated landed cost transaction.

o Navigate to: Procurement and sourcing > Common > Purchase orders > All purchase orders.
o Under the INVOICE tab, select INVOICE HISTORY, click on the invoice to adjust and click on CHARGES – ADJUSTMENT.

o Enter the charge code for the adjustment and the adjustment amount. Note that the actual invoice for the adjustment should be entered against the same GL code as the item charge code.

o This adjustment will be posted the next time that the Inventory close process is run. To view, navigate to Inventory and Warehouse management > Periodic > Closing and Adjustment.

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