Can I apply landed cost during invoice entry? Inbound freight is not known during receipt of goods entry.

Question

We often order stock items on a PO where the inbound freight amount is TBD or an estimated amount that is only known/determined when we receive the vendor's invoice. From what I can tell, landed freight costs are applied during Receipt of Goods. Since we do not know this amount until we enter the Receipt of Invoice the landed cost amount does not get applied to the inventory value for those items. Does anyone know of a work-around or have any insights?

Kevin M · Answer

You could receive and sell the inventory before the ROI is entered, with COGS posted at sale. There is no logical (let alone technical) way to apply the landed costs to inventory you don't have anymore. 
 If you use lot/serial valuation, you might be able to do adjustments, assuming the inventory is still on hand, but that seems like a lot of work.

StefanouM · Answer

Landed Cost is usually an "estimate" of the costs to land the product in your building. When actual invoices arrive later, for Freight, Duty and Customs, the expense is for the net difference between what you estimated and applied to the PO Receipt of Goods Transaction and your Actual costs. I don't know of a work around since Inventory Unit Cost is only managed at the Receipt of Goods process.

Sage 100

Can I apply landed cost during invoice entry? Inbound freight is not known during receipt of goods entry.

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