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    Muhammad Bilal
    How to add Transportation cost on PO's and that will...Answered
    Topic posted September 16, 2019 by Muhammad BilalBronze Medal: 1,250+ Points 
    33 Views, 4 Comments
    Title:
    How to add Transportation cost on PO's and that will also update the Item Cost
    Summary:
    We need to add Shipment cost for items in PO and it's should also update the item cost as well in inventory.
    Content:

    We have one PO with 5 items price 1000 for all and now we need to add shipment cost 300 on that. 

    Is there any possibility to add this cost in PO and it's should apply also on item cost as well for amount.

    For ( example PO is for IT related ) 

    1- Laptop

    2-Desptop

    3-Keyboard

    4- Mouse

    5- Windows License

    So how we can apply the transportation ( shipment cost ) on Hardware as it's included in PO( Purchase order)  as Shipment amount 300. 

    but we don't want to apply the shipment cost on windows license as it's software. 

    In Fusion what's the best practice available for such requirement. 

    Best Comment

    Deepak Padhy

    Hi Muhammad - You can achieve your scenario by using LCM where you can add your shipment cost to PO lines and eventually this will be merged in your inventory val (in case of Avg cost).

    You can check below notes for LCM:

    Understanding Landed Cost (LCM) in Fusion (Doc ID 2262559.1)

    End to End Step By Step Landed Cost Flow With Simple Test Case (Doc ID 2351071.1)

     

    Thanks

    Comment

     

    • Suman Guha

      Moved from Purchasing forum.

    • Deepak Padhy

      Hi Muhammad - You can achieve your scenario by using LCM where you can add your shipment cost to PO lines and eventually this will be merged in your inventory val (in case of Avg cost).

      You can check below notes for LCM:

      Understanding Landed Cost (LCM) in Fusion (Doc ID 2262559.1)

      End to End Step By Step Landed Cost Flow With Simple Test Case (Doc ID 2351071.1)

       

      Thanks

    • Muhammad Bilal

      How we can use the Landed Cost while creating the PO? as we have to send the Purchase order with shipment cost.

      Buyer is getting Total shipment cost from the supplier for multiple items so how it's can be apply during PO creation. 

      As we are using the landed cost for freight and customs clearance charges but that is after the fact and this expnse is for Cleaning Agent not for the PO supplier. 

    • Krishna Ghantasala

      You can use landed cost for all type of charges please.

      The charges payable to third party service providers or clearing agents or for any charges payable to Material Supplier itself.

      For your requirement, add these charges to the Material PO with line type as service. Along with Line type goods you will have for Materials.

      Create a Trade Operation, with a Charge line as Service PO, and use the line type Service from the PO and associate to the Charge line, so the cost for the charge will come from this Service PO line.

      Associate the Material Purchase details to this charge line and complete your rest of landed cost allocation.