Overview
Import companies and other businesses incur additional costs in bringing goods from a vendor location to their warehouse. Such charges can include freight costs, import duties, taxes, tariffs, etc. These costs are known as Freight and Landed Costs and are components of inventory which need to be capitalized.
Application
The Freight & Landed Cost program adds functionality to enable the accumulation of inbound freight and other landed costs, define the method of allocating the cost, and capitalize the apportioned share of cost to the inventory items when received. Additional Cost Components of “Freight” and “Other Landed Costs” will be added to the Inventory Cost records in Rootstock to capture the allocations.
IMPORTANT The Freight and Landed Cost program has been developed as a Lightning App built on the Salesforce Lightning Platform and leverages Automation Tools (Lightning Actions/Lightning Flow). Please refer to the RootFlows - Overview article for more information.
Navigation
The Freight and Landed Cost application can be found in the Salesforce Lightning App Launcher. The application contains tabs for each of the objects needed to process Freight and Landed Costs.
Prerequisites
The Freight & Landed Cost program is included with the standard Rootstock ERP package. To enable the program in your org, simply navigate to the Division Master Lightning Page or List View and select the field "Freight Landed Active". See the article Freight & Landed Cost: Setup for additional setup requirements.
Click on the image below to open a PDF that contains hyperlinks to related articles.
Terminology
- FLC Header: Vendor Bill of Lading Header record which collects the items and charges used in the Freight and Landed Cost calculations.
- Charge / FLC Charge: Vendor Bill of Lading Charge which establishes the amount, type of the charge (freight or other landed), and the calculation method used to allocate the charge across the items selected. Example charges are freight, duty, customs, handling, etc.
- Items / FLC Item: Vendor Bill of Lading Item records which link the Purchase Order Line to the Vendor Bill of Lading Header.
- Landed Cost Master: Record which contains the following details used when creating a Charge: Division, type of charge, apportionment method, and clearing account.
- Apportionment Method: The calculation method to be used when allocating the Charges to the related Items. Examples include value, line count, percentage, etc.
- Item Charges / FLC Item Charges: Once the apportionment calculations have completed, Landed Cost Bill of Lading Item Charge records will have been automatically added to the Vendor Bill of Lading Header. These records will reflect how much of each charge has been apportioned to each item.
Freight & Landed Costs (FLC) - Table of Contents
- Freight & Landed Cost: Setup
- Freight & Landed Costs: Processing
- Freight & Landed Cost: Weighted Average Cost
- Freight & Landed Cost: Standard Cost
- Rootstock Schema Builder - Freight and Landed Cost
SEE ALSO
Purchase Order Overview
Sub-Ledger Accounts Pt. 1
Division Master
