How to set up and use Landed Cost in Purchase Order

How to set up and use Landed Cost in Sage 100 Purchase Order? Landed Cost calculates on a Miscellaneous Item.

Make sure that you check the PO line for landed cost.  If you don't want Landed Cost calculated, then uncheck the box.

This information defaults from Item Maintenance on the Additional tab where there’s an "Allocate Landed Cost" box that you can select.  Define a Miscellaneous Item default in Miscellaneous Item Maintenance.

To set up Landed Cost in Purchase Order:

1. Select Purchase Order, Setup, Purchase Order Options. Click the Line Entry tab.
   • Select 'Allow Landed Cost'.  The 'Allow Entry of Landed Costs' checkbox in the Purchase Order Options window is available only if you clear "Allocate Freight on a line item basis".
   • If you select the 'Include Alloc'd Cost' in Default Unit Cost During Entry' in the Purchase Order Options window, the total last cost (which includes any allocated costs) is used as the default in Purchase Order Entry, Receipt of Goods Entry, and Receipt of Invoice Entry.
   • To print allocation detail on the register, select the option 'Print Landed Cost Allocation detail on Register'.
2. Select Setup, Landed Cost Type Maintenance and create landed cost types.
   Note: FRGHT will always be a landed cost type and is the only type that will be automatically updated from the freight and prepaid freight field.
   • Create a new Landed Cost Type.
   • Assign the Landed Cost Type an Allocation Method.
     Because weight and volume aren’t entered on special and miscellaneous items, a landed cost type using weight or volume as the allocation method will only allocate cost to inventory line types.
   • Assign a General Ledger Expense Account.
   • Automatic Update is only available for FRGHT.

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To enter Landed cost in Purchase Order:

You can only enter Landed Cost at the time of Receipt of Goods. If you select 'automatically update' for FRGHT in Landed Cost Maintenance, then the amount in the Purchase Order entry freight field will automatically update to Landed Cost Entry.

If you need to enter additional Landed cost:

1. Select Receipt of Goods go to the Total tab
2. Click the Landed Cost button
3. Choose the 'Landed cost type' and enter an amount
4. Click Ok and Accept out of landed cost entry

Note:  It’s necessary to check the Allow Entry of Landed Cost checkbox in Item Maintenance