Landed Cost Adjustment Types

For the optional Landed Cost module to work properly, landed cost adjustment types must be set up 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 total cost of a product. This type may include shipping or freight costs that are billed on a separate invoice or freight listed 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 and insurance fees may add to the cost of a 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, like most other types do).

Complete the following steps to set up landed cost adjustment types:

Click on Expenses > Options from the main EBMS menu and click on the Landed Costs tab as shown below. IMPORTANT: If the optional Landed Cost module is not installed in EBMS, this tab will not appear. If you are interested in adding the module to your subscription, please contact Koble Systems.
Enter the most common landed Cost Type ID as shown above.
Check the Default option in the first column to identify the adjustment type that will be used within the expense invoice without pre-assigning landed cost adjustments to 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 G/L on Purchase Order Landed Cost G/L Cost Adjustment Amount
Repeat the steps listed above to create any additional Landed Cost Types.

Review Assigning Default Landed Costs to an Item for details on entering adjusting cost entries for specific inventory items.

Review Adjusting Landed Costs within a Purchase Order for instructions on how to enter landed costs.

Debit	Credit	Amount
Purchase G/L on Purchase Order	Landed Cost G/L	Cost Adjustment Amount