Estimate the landed costs at time of receipt of goods.   Put in the actual when you do receipt of invoice.   It should then show up as a pricing variance.

Tom,

If I estimate the landed costs at receipt of goods, how will it generate a variance?  I know you get a variance for product invoices, but the landed costs don't generate a variance that I know about.  For example, if there is 3rd party freight of $1,000 for a particular truckload and you estimate it as $1,000 but the invoice arrives later and is for $1,100, how do you get the variance.  Doesn't the landed cost post to a specific G/L account and assumming you pay the bill using the same G/L account you would be able to see a running variance amount, but the variance won't be like the variance that happens in A/P when you pay a product PO and it produces a variance report, correct?

Tyler

I agree with Tom.  I would prefer not to estimate at all if there is another way around it, but it is sounding more and more as though there is no way around it if I do not have the invoice in hand.

What we did was to go back a few years and see what the average percentage the freight cost was, for example we found that on a yearly basis our freight cost was 9% so when doing landed cost we use 9%  and it comes pretty close. We don't nit pick.

Whether or not it shows up specifically as a variance in a receipt of invoice register is somewhat moot.   One way or another it gets to the g/l as a variance (maybe not in the specific g/l account you want, but it gets there).

And as BL says,  as long as you are close that's about the best you can hope for.   If you miss by a huge amount,  then you need to consider going back and making adjustments.

I am not sure I should ask this, but why would Sage create a specific variance register for anytime the quantity or price on a purchase order receipt doesn't match the accounts payable invoice but not do this for when a freight or other landed cost invoice doesn't match the cost entered during landed cost at time of receipt?  I do agree that the cost ends up in the G/L, really doesn't it all, but it seems to be much more difficult to track if you were worried that the costs you were using at time of receipt of goods were not matching the actual invoices.  My assumption is that Sage created the variance register to help guard against fraud, but wouldn't the same reasoning apply to freight and other invoices for landed cost?  It doesn't seem like anyone else is too concerned about this, but I am curious.

Probably just overlooked or in general people aren't too worried about it (materiality?).

I will admit you are the first person I have ever heard bring this up.  Doesn't mean that it wouldn't be a good idea.

Go to the suggestions sight and make a suggestion.

Thanks Tom!  I will consider doing just that.