Indicate the code of the cost element that you want to add or update.

Each element represents a type of cost that you may incur when moving an item from the supplier to your warehouse. For example: Freight, duties and brokerage would be typical costs incurred when purchasing an item from a foreign supplier. You would configure each of these costs as an element.

A more detailed breakdown of costs can be maintained by creating multiple elements for a single type of cost. For example: You could create an element for each of the different types of shipping methods (i.e. Air, truck, rail, or ship).

The elements for each applicable stock code are grouped into a Bill of landed costs. The sum of the bill comprises the expected costs of moving an inventory item from the supplier to your warehouse.

Each element maintains both the expected and actual cost. The expected cost is calculated using the Calculate New Landed Cost program, while the actual costs are apportioned from invoices posted in the Accounts Payable Invoice Posting program.

The elements do not determine the expected cost amount. This is determined by the calculation code. The result of the calculation is stored as the expected cost element value.

When you create the bill of landed costs you enter the appropriate cost element and calculation codes for each entry in the bill.

Fixed cost elements are apportioned when a purchase order is attached to a shipment. All other element types are calculated based on the calculation code and apportionment only occurs during invoice posting.

See Restrictions and limits in Notes and warnings

This indicates the code of the cost element that you want to add or update.

This supplier is used as the main supplier when adding sundry items to the shipment as well as including fixed costs. It is also the supplier which is pushed through to the journal for each element line which is posted to the journal. You are not required to post the invoice to the element supplier.

	The supplier must be configured to require LCT (Supplier Maintenance - Purchasing Details). If you enter a supplier for whom LCT is not set to required, you are prompted to set LCT on for the supplier.

This indicates the currency in which the supplier will charge you for services, which is the currency in which you will enter the expected rate.

It defaults to the currency of the supplier (Supplier Maintenance - Supplier Details).

Select this to assign a fixed cost to the element that can be applied to a specific route.

Fixed cost elements are apportioned when a purchase order is attached to a shipment.

You can only select this option when you add a new element. You would use this facility, for example, where a container is brought in with fixed costs attached, regardless of its contents. Because different routes (e.g. Sea, air) attract different costs, these fixed costs are held against the route codes (Browse on Routes) and are automatically distributed over the items in the container according to the apportionment method attached to the element. They are not stock code dependent and actual costs are calculated at the time of posting the invoice.

	You cannot use the apportionment methods ENT and CALC if you select the Fixed cost option.

Enter the fixed cost amount that must be used for this element.

This option is only available if you selected the option: Use fixed costs above.

The calculation of the expected cost of the element does not have to include this expected rate amount.

If you want to include the expected rate amount in a calculation, enter the reserved word RATE in one of the fields in the calculation. Enter the rate in the currency specified at the Currency field.

This indicates the basis (e.g. weight, value, volume, etc.) according to which you want to allocate the invoice amount to each line of the purchase order included in the shipment.

When calculating the apportionment values the Invoice Posting program processes only those purchase order lines included in the shipment where the cost element has been applied. Once the actual value for each purchase order line has been determined then the actual cost for each element is updated by this value.

If you selected the option: Convert all quantities entered as alternate u/m to stocking u/m (Purchase Orders Setup), then you can use an alternate unit of measure as the base of any apportionment. If a purchase order is raised using an alternate unit of measure, the quantity is converted to the stocking unit of measure on all lines of the shipment. This means that when apportionments are done, all the lines are based on the same unit of measure.

Select this to apportion the invoice amount to the cost element according to the value of each purchase order line.

The value to apportion is determined by the formula: A/B x C

where: A = Merchandise line value (Qty shipped X P/order price - any discount) B = Total merchandise value of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency.

Select this to apportion the invoice amount to the cost element according to the volume of each purchase order line.

The value to apportion is determined by the formula: A/B x C

where: A = Volume for the line (Qty shipped X unit volume defined against the stock code) B = Total volume of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency.

Select this to apportion the invoice amount to the cost element according to the mass of each purchase order line.

The value to apportion is determined by the formula: A/B x C

where: A = Mass for the line (Qty shipped x unit mass defined against the stock code) B = Total weight of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency.

Select this to apportion the invoice amount to the cost element according to the quantity shipped on each purchase order line.

The value to apportion is determined by the formula: A/B x C where: A = Qty shipped for the line B = Total qty shipped of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency.

Select this to apportion the invoice amount to the cost element according to the number of purchase order lines attached to a given shipment reference.

The value to apportion is determined by the formula: A/B x C where: A = 1 B = Total number of lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency.

Select this to manually apportion the amount to each purchase order line.

You select this option when you cannot apportion the cost element by any pre-determined formula. The system displays all purchase order lines for which the cost element has been used. You must enter the amount to apportion for each line, until you have distributed the full cost element.

This option is not available if you selected the option: Use fixed cost above.

Select this to apportion the invoice amount according to a calculation method.

The value to apportion is determined by the formula: A/B x C where: A = Value determined by calculation code. B = Total value of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency.

This option is not available if you selected the option: Use fixed cost above.

This indicates the calculation code that you want the system to use to apportion the invoice amount.

You can only access this field if you selected CALC at the Apportionment method field.

This indicates the sequence number that will be used to sort cost element codes.

This defaults to the number 10 and is only used to sequence your cost elements for reporting/query purposes.

For example:

If you have entered FREIGHT, POSTAGE and DUTY as the cost elements for a stock code, then the Shipment Tracking Report prints these elements alphabetically as: DUTY, FREIGHT and POSTAGE. However, you can change the sequence in which these elements are printed by assigning a sequence number to each element.

This indicates the ledger account to which postings are made for each cost element when receiving a shipment into stock. If left blank, then the credit amount is posted to the Non-stocked control account (General Ledger Integration - Inventory tab).

You can access this field only if Inventory is linked to General Ledger (General Ledger Integration - General Ledger tab) and:

You will be unable to access this field if:

In this case, the credit ledger code used is always the GRN suspense control account (General Ledger Integration - Inventory tab).