Working with Landed Costs

Create a Purchase Order and make sure you have the right supplier, foreign currency and exchange rate involved in the transaction.

A Purchase Order in CRM

If you do not want to estimate landed costs, you can skip to step 6 to add actual landed costs instead.

In the Purchase Order, select the Estimated Landed Costs tab and click on Add New Landed Cost.

Select the appropriate options in the fields for Product, Tax Rate, Price, Currency and Supplier.  If the currency is different to the one chose in the Purchase Order, it is important to check that the exchange rate shown here is accurate.

Click on Save when you are finished and the item you have created will now be visible in the Estimated Landed Costs tab, as per the following example.

To create the Inbound Shipment, click on the Receipt button in the Purchase Order record and select Receive All – this action will generate an Inbound Shipment record which will open automatically.

Generating an Inbound Shipment from a Purchase Order

In the Inbound Shipment record, click on the Mark As Received button.

Marking an Inbound Shipment as received

Go to your original Purchase Order record – you can do this by clicking on the link in the top right hand corner of the Inbound Shipment record.

Use the Purchase Order link to jump straight to the record

When the Purchase Order opens, click on Edit at the top of the record to see the Landed Cost detail for your items in the order.

You can also have a look at the Product itself and check the landed costs, when doing this, mind the exchange rates. For instance, in this case the landed cost was USD 35 at an exchange rate of 0.76 USD = 1 AUD, meaning that the cost in AUD is 46.053:

Viewing landed cost information on a Product record

In your Purchase Order you can generate the Supplier Bill for the items you purchased; just hit the button Convert to Supplier Bill on the toolbar:

Convert a Purchase Order to a Supplier Bill

You will now see that the landed costs have been subtracted from the full amount:

Landed costs on a Supplier Bill

Go to your Purchase Order and add your Actual Landed Costs, there a specific tab for this:

Adding actual landed costs to a Purchase Order

This is about the specification of Supplier Bills all the landed costs involved, make sure that you associate the right suppliers and landed cost items, otherwise the variances will not be calculated.

This step is not required when you did not deal with estimates at the beginning of the process and are just using actuals.

Calculate the variance by clicking on Calculate Landed Cost Variance button on the toolbar for all your landed cost related Supplier Bills.

Calculating landed cost variances on a Supplier Bill

Once you click this button, refresh CRM by typing in your keyboard F5 or just clicking on the refresh button in your browser, which generally looks like this:

This will include any differences with the original estimations as shown below:

Landed cost variances on a Supplier Bill