Cost Adjustment Types
A landed cost adjustment type must be setup within EBMS before the purchase
cost can be adjusted. Review the following adjustment types:
- Freight - Freight costs
are the most common reason to adjust the purchase cost to reflect
the landed cost. This type may include shipping or freight costs
that are billed on a separate invoice or may be freight on the same
purchase order. There may be multiple freight costs such as overseas
shipping, handling, or insurance.
- Handling - The handling
type can be used for a variety of additional costs or labor that increase
the original purchase cost.
- Insurance - A variety of
legal expenses may increase the purchase cost of product.
- Processing - The processing
cost type could be used to cover the additional costs incurred to
prepare the purchased product for sale.
- Rebates - This type can
be used to reduce the purchase cost based on a guaranteed rebate rather
than increasing the costs as the other types.
Complete the following steps to setup landed cost adjustment types:
- Click on Expenses > Options
from the main EBMS menu and click on the Landed
Costs tab as shown below:
- Enter the most common landed Cost
Type ID as shown above.
- Enable the Default option
to identify the type used within the expense invoice without pre-assigning
landed cost adjustments with an item.
- Enter a Description of
the landed cost type.
- Enter the credit G/L
account. This general ledger account is used to post the credit
transaction of the landed cost adjustment.
Debit |
Credit |
Amount |
Purchase GL on PO |
Landed Cost G/L |
Amount of cost adjustment |
- Repeat the steps listed above for any additional Landed
Cost Types.
Review the Assigning
Default Landed Costs to an Item section for details on entering adjusting
cost entries for specific inventory items.
Review the Adjusting
Landed Costs within a Purchase Order section for instructions
on how to enter landed costs.