Working with Landed Costs (Item Charges)

Often the cost of shipping goods from a vendor has an additional charge attached to it. These charges must be recorded and associated to the Items received previously. This can be done at the time of Invoicing if the vendor is also the shipper or can be done at a later stage when the Invoice is received from the shipping company, who is a different vendor.

These charges are recorded by using a Purchase Invoice Process as described above, but the Type used in the Lines FastTab, is Item Charge Assignment.

Invoicing and Assigning Landed Costs or Item Charges

1. Create a new purchase Invoice. For more information, see Purchase Invoicing. 
2. Once the vendor is selected and all other relevant information is completed on the invoice header, move to the Lines FastTab.
3. In the Type column, select Charge (Item).
4. Fill in all the fields, using Qty=1, and Direct Unit Cost as the cost of the shipping unless there is an accurate cost per item shipped.

5. To assign the cost to received items:
   1. Click on the Line Functions > Line > Item Charge Assignment.
      
      
      The Item Charge Assignment card displays.
      
      
   2. From the Ribbon, click the Actions tab and then click Get Receipt Lines.
      
      
   3. In the QTY to Assign field, specify the quantity (from the Item Charges Invoice) or the amount (from the Item Charges invoice) to assign to the shipment previously received. This will assign the charges to those items and allocate an indirect cost.
6. Post the Invoice. The charges are now allocated to the received items.