Overview
This article covers the steps required to process Freight and Landed Costs. The steps discussed below are:
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Define Landed Cost Master records
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Create FLC Header
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Add to the FLC Header:
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Update FLC Header status to "Setup Complete"
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Run Apportionment and Review FLC Item Charge Records
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Perform Purchase Order Receipt
Application
Freight & Landed Costs
Terminology
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FLC Header: Vendor Bill of Lading Header record, which collects the items and charges used in the Freight and Landed Cost calculations.
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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.
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Items / FLC Item: Vendor Bill of Lading Item records that 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.
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Apportionment Method: The calculation method to be used when allocating the Charges to the related Items. Examples include value, line count, percentage, etc.
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Item Charges / FLC Item Charges: Once the apportionment calculations have been completed, Landed Cost Bill of Lading Item Charge records will have been automatically added to the FLC Header. These records will reflect how much of each charge has been apportioned to each item.
Navigation
Salesforce App Launcher > Freight and Landed Costs
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.
Processing steps listed below assume the user is already in the Freight and Landed Costs application.
Processing
1. Define Landed Cost Master Records (SYLAND)
Salesforce App Launcher > Freight & Landed Costs > Landed Cost Master > New
Landed Costs Master records are created to define the cost type and the allocation method.
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Define the Landed Cost Master record by entering in the necessary information, including the Landed Cost Type and Apportionment Method. The Division and Clearing Account fields will default if left empty.
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Create a Landed Cost Master record for each type of charge + apportionment method needed. For example, if freight is sometimes allocated based on dollar value and other times by weight, two separate Landed Cost Master records should be created for the varying allocation methods.
NOTE Creating Landed Cost Master records is a setup step and will not be required each time a user enters Freight and Landed Cost records.
Landed Costs Types and Calculations
An unlimited number of Landed Cost Master records can be created to accommodate landed cost charges incurred. The Landed Cost Master records will be categorized as "Freight" or "Other Landed Costs" types and will be recorded as such on the related Inventory Cost records when the items are received. Examples of Landed Cost Masters could include:
Landed Costs are added to the cost of the direct material via different allocation methods. The calculations will occur across all of the FLC Items associated with the FLC Header record. These Apportionment Methods include:
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Quantity - costs are allocated across the total quantity of Landed Cost Items
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Weight - costs are allocated across the total weight of the Landed Cost Items
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Value - costs are allocated based on the purchase price of the Landed Cost Items
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Line Count - costs are allocated equally across each of the Landed Cost Item lines
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Percent - costs are added based on a defined percentage applied to the value of the Landed Cost Items
IMPORTANT For the weight apportion method to calculate correctly, the item's unit weight must be defined on the Inventory Item Master record. Navigate to Inventory Item Master > Attributes > Weight.
Fields
Accrued Landed Clearing Account: Accrual account to which Freight and Landed Cost Charge will be posted when Purchase Order Receipt occurs. If left blank, the field will default to Accrued Landed Clearing account set on the Division Master record.
Division: Purchasing Division associated with the Landed Cost Master.
Description: Description of Landed Cost type (up to 50 characters).
Landed Cost Apportion Method: Method of allocating Freight and Other Landed costs across the associated line items. Options are: Weight, Quantity, Value, Line Count, and Percentage. See above for a further description of these methods.
Landed Cost ID: Unique identifier with a max of 10 characters.
Landed Cost Type: Defines the type of cost - options are "Freight" or "Other Landed". This choice will drive to which inventory cost categories the charges are booked.
Percent: If Landed Cost Apportion Method = Percentage, this field is required to capture the percent value, which will be applied to a line item's cost. For example, if the line item is $100, and the percentage is 20%, the landed cost will be $20.
2. Create FLC Header (POBOLHDR)
Once Landed Cost Masters have been defined and the direct material Purchase Order exists, an FLC Header needs to be created. The FLC Header connects the FLC Charges with the direct material Purchase Order Lines for allocation. Each FLC Header will contain roll-up summary totals of the detail lines (FLC Items and FLC Charges) associated with the FLC header. These roll-up summaries include totals by landed cost type (Freight or Other Landed), total PO amounts, total weight, etc.
The FLC Header is a Division-level object and will include an auto-numbered document number.
There are two ways to create a Bill of Lading Header:
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From the Home page, enter a value for the field Landed Cost Reference ID 1 in the "RSTK - Create Landed Cost Header" section, and click Next. The screen will present a link to the new FLC Header record.
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Navigate to the FLC Header tab and click New from the list view, enter the Landed Cost Reference ID as '1', and save.
NOTE The Landed Cost Reference ID 1 is an alphanumeric field and should be used as a meaningful identifier for your landed cost record. For example, if charges are being allocated to multiple items being shipped within one freight container, the container identifier might be a good choice for the Landed Cost Reference ID field.
Fields
Division: This is the Division associated with this FLC Header.
Document Number: Auto-numbered of Header document number.
Freight Amount: Rollup summary of all FLC Item Charges with landed cost type = Freight
Landed Reference ID 1: This is free form and provides other reference numbers that may be identifying numbers on the bill. It is primarily used to be able to find a (FLC Header) record
without having to remember the Document Number
Landed Reference ID 2: This is free form and provides other reference numbers that may be identifying numbers on the bill. It is primarily used to be able to find a (FLC Header) record without having to remember the Document Number.
Maintenance Currency: This field is required and must match the Maintenance Currency of the Purchase Order Header on the Landed Cost Bill of Lading Item or FLC Charge. Once FLC Charges and/or Landed Cost Bill of Lading Items are added, this currency cannot be modified.
NOTE If this field is left blank when creating the FLC Header (POBOLHDR) record, it defaults to the Home Currency of the Company associated with the specified Division.
Other Landed Amount: Rollup summary of FLC Charges with Landed Cost type equal to Other Landed.
Percent Amount: Sum of all FLC Item Charges calculated via percentage only.
Qty UOM: Enter Quantity UOM. Note: This field is for reference only. All items added to the BOL are assumed to have the same qty UOM for apportionment calculations. and will be
initialized by the first Item added to the BOL.
Status: Status of FLC Header. Values: New (default), Setup in Process, Setup Complete, Apportion Complete, Apportion Closed.
Total Amount: Total of all FLC Item Charges.
Weight UOM: Enter Weight UOM. Note: This field is for reference only. All items added to the BOL are assumed to have the same weight UOM for apportionment calculations.
Cost Summary Fields:
Apportioned Freight: Rollup summary of Freight charges from FLC Item Charge records.
Apportioned Other Landed: Rollup summary of apportioned Other Landed costs from the FLC Item Charge Records.
Apportioned Total: Total Apportioned Freight plus Apportioned Other Landed.
Total PO Values: Rollup summary of total extended amount on associated PO Lines.
Total Quantities: Rollup summary of total quantity required on associated PO Lines.
Total Weight: Rollup summary of total weight values on associated PO Lines.
Number of Charges: Rollup summary counting the number of FLC Charges associated with the FLC header.
Number of PO Lines: Rollup summary to count the number of FLC Items (aka PO Lines) associated with the FLC header.
3. Add FLC Items and Charges to the FLC Header
To allocate the landed costs to the items, the user must associate the direct material Purchase Order Lines (via FLC Items) to the FLC Charges by adding each to the FLC Header.
FLC Items (POBOLITEM)
FLC Items are created by looking up to the Purchase Order Line(s), which will receive the apportioned landed cost. The unit material cost and quantity will be populated once the record is saved.
From the FLC Header, there are two ways to add FLC Items, as follows:
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FLC Header > Landed Cost Bill of Lading Items > New button --> Use this button to add one Item at a time. Complete the Purchase Order Header and Purchase Order Line fields, then save. The remaining fields will default with information from the Purchase Order Line (for example, Division, Project, etc.).
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In Lightning, FLC Header > Add Items Action > enter Purchase Order Number --> Use this action to add all PO Lines or selected PO Line(s) from a Purchase Order at once.
NOTE Purchase Order Lines from different Purchase Order Headers can be added to the Bill of Lading Header as long as those Purchase Orders are in the same Division. All Items added to the Bill of Lading Header will be included in the apportionment calculations.
Fields
Freight Apportioned Amount: Rollup summary of all FLC Item Charge records against this item, with Landed Cost Type = Freight. Note: the apportionment process must be completed before this field is populated.
Landed Cost Bill of Lading: This is the FLC Header for this item.
Landed Cost Pending PO Receipt: Amount of Landed Cost Charge allocated to the item which has not been received via PO Receipt.
Other Landed Apportioned Amount: Rollup summary of all FLC Item Charge records against this item, with Landed Cost Type = Other Landed. Note: the apportionment process must be completed before this field is populated.
PO Line Quantity Received: Quantity received from the PO Line.
PO Line Quantity RTV: Quantity returned to vendor (RTV) from the PO Line.
PO Value: If left blank, an extended amount (unit cost * qty required) from the PO Line will be entered. It cannot be less than 0.
Project: Lookup to Project Master. Will default to Project set on the PO Line.
Purchase Item: Lookup to the Purchase Item Master. Will populate from the PO Line.
Purchase Order: Purchase Order Header associated with the PO Line (direct material item) being added to the FLC Header.
Purchase Order Line: PO Line (direct material item) being added to the FLC Header.
Quantity Required: If left blank, qty required will be populated from the related PO Line.
Total Apportioned Amount: Total Landed Costs (Freight and Other Landed) apportioned to the Item.
Total Freight Amount Received: Total Freight amount received via PO Receipt of this line item. If the PO Line is partially received, this field will reflect what amount of the total freight cost has been received to date.
Total Landed Costs Received: Total Landed Cost amount received via PO Receipt of this line item. If the PO Line is partially received, this field will reflect what amount of the total Landed Cost has been received to date.
Total Other Landed Amount Received: Total Other Landed Cost amount received via PO Receipt of this line item. If the PO Line is partially received, this field will reflect what amount of the total freight cost has been received to date.
Total Weight: Enter the total weight for the Item line. If left blank, the weight will be calculated as the Purchase Item unit weight * Qty required on PO Line. The amount cannot be less than 0.
FLC Charges (POBOLCHARGE)
FLC Header Page > FLC Charges section > New
FLC Charges are created by looking up the Landed Cost Master (see Step 1 above) and entering the amount or percentage being charged.
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Enter the ID of the Landed Cost Master created in a previous step.
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Enter the amount of the Charge. The amount will be the total amount to be apportioned across the Items added in the previous step.
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The remaining fields will populate based on information from the Landed Cost Master record or the FLC Header.
NOTE If the Apportionment method is "percentage", the system will require a percent to be entered instead of an amount.
Occasionally, a Purchase Order will be created for landed costs, using an indirect Purchase Item. To allocate the cost of the indirect item's Purchase Order Line to the direct material FLC Items, the indirect Purchase Order Line must be added to the FLC Header as an FLC Charge. Create an FLC Charge record as mentioned in the previous paragraph, and
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Check the box labeled Purchase Order Indicator.
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Enter the Purchase Order Header number and Purchase Order Line. The remaining fields will auto-populate upon saving.
NOTE When creating the indirect or service type Purchase Item Master, the following landed cost-related fields will need to be completed: Associated Landed Cost Detail (a lookup to Landed Cost Master) and Accrued Landed Clearing Account.
Fields
Accrued Landed Clearing Account: Landed Clearing Account - if a POLINE is specified, will use the Landed Cost Clearing Account specified on the Purchase Item master. Otherwise, will use the Landed Cost Clearing account specified on the Landed Cost Master.
Amount: Amount of FLC charge, which will be apportioned among the FLC Items associated to the FLC Header.
Apportionment Method: Options are: Weight, Qty, Value, Line Count, and Percentage. If left blank, will use the method defined on the Landed Cost Master record.
Invoice Number: Main identifier on the invoice from the carrier (if freight) or agency (if duty, tariff, etc). Max 50 characters.
Landed Cost Bill of Lading: Link to Landed Cost Header.
Landed Cost ID: Select Landed Cost Master associated with this charge. This will drive the apportionment method.
Landed Cost Type: Options are: Freight or Other Landed Cost. If left blank, will use the type defined on the Landed Cost Master record.
Percent: Percentage rate to be used to calculate the tax or fee applied to all associated PO Line items. If left blank, the percentage will be set equal to the percentage set on the Landed Cost Master.
PO Item: Purchase Item that corresponds to the indirect freight and/or other landed charge - populated from the PO Line selected on this Landed Cost charge record.
Project: Lookup to Project Master
Purchase Order: Required field, if Purchase Order Indicator field is checked. PO Division and PO Maintenance Currency must equal Bill of Lading header division and maintenance currency values.
Purchase Order Indicator: If checked, this BOL Charge is sourced from a Purchase order line. Multiple fields on this BOL Charge record will be updated from the PO Line. Note:
Cannot be checked if landed cost apportionment method = percentage.
Purchase Order Line: If PO Indicator flag is checked, select the PO line representing the landed cost charge. Otherwise, leave blank.
Vendor for Freight or Landed Charge: Vendor number of the carrier or agency associated with the PO associated with this Landed Cost Charge.
4. Update FLC Header status to "Setup Complete"
The Bill of Lading Header Status field updates throughout the Landed Cost Process. When the Landed Cost Header is created, the Status is "New". When Items or Charges are being added or changed, the Status is "Setup in Process". Once the changes are complete, the Status must be toggled to "Setup Complete" before the Landed Cost Apportionment process will run.
TIP An approval workflow could be added to the Landed Cost Header to provide a level of management review and update the Status field to "Setup Complete".
5. Run Apportionment
FLC Header Page > Apportion Button
Once the FLC Item and Charge details are added to the FLC Header, and the FLC Header Status field is updated to "Setup Complete", the user will run the Landed Cost Apportionment program from the Apportion button on the FLC Header page. Based on the apportionment method defined on the Landed Cost Master record, the FLC Charges will allocate across the FLC Items and create new detail records called FLC Item Charges. The Status of the FLC Header will update to "Apportionment Complete".
If subsequent charges are made to the Purchase Order Line, the FLC Items, or the FLC Charges, the FLC Header status will revert to "Setup in Process". Return to Step 3 above. The Apportionment can be re-processed until a purchase order receipt has occurred against any of the FLC Item records. The first Purchase Order Receipt will update the FLC Header status to "Apportionment Closed" and no further changes will be allowed.
NOTE After executing the apportionment program, for each FLC Item the system will find its associated Vendor Item Master record and will update the 'Unit Freight Amount' and 'Unit Other Landed Amount' fields on the identified Vendor Item Master as below:
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Unit Freight Amount = 'Freight Apportioned Amount' (on the FLC Item) / 'Quantity Required' (on the FLC Item)
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Unit Other Landed Amount = 'Other Landed Apportioned Amount' (on the FLC Item) / 'Quantity Required' (on the FLC Item)
6. Review FLC Item Charges (POBOLITEMCHARGE)
FLC Header Page > FLC Item Charges
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After the apportionment program has been completed, FLC Item Charge records will have automatically generated. Review these records for accuracy. There should be one record for each Item + Charge combination.
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The status of the FLC Header will have updated to Apportionment Complete. If changes are needed to the Items or Charges, the user can modify the records. By making changes to the records, the FLC Header status will automatically revert to Setup in Process and Apportionment will need to be processed again.
EXAMPLE Five FLC Items and four FLC Charges have been entered on an FLC Header. Once the apportionment has been processed, the system will have generated twenty FLC Item Charges. Each of the five FLC items will have four FLC Item Charges – one for each of the four FLC Charges.
6. Perform Purchase Order Receipt
FLC Header Page > PO Receipt button or Receive All button
Processing the Purchase Order Receipt will close the FLC Header record and prohibit further changes or re-apportionment. A Purchase Order Receipt can be initiated from the standard Rootstock interface. See Purchase Order Receipts for further information. The FLC Header page includes the following two options for processing Purchase Order Receipts for the Purchase Order Lines associated with the FLC Header. Both Flows support Serialized and Lot Controlled receipts. The FLC Header must be in a status of "Apportionment Complete" before a Receipt is allowed.
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PO Receipt button - This Flow will process the receipt on a line-by-line basis, allowing the user to enter the quantity to receive (partial receipts allowed), define the receiving Location ID and Location Number, etc.
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Receive All - This Flow will process the receipt for all quantities remaining on the related Purchase Order Lines, with minimal input by the user. Partial Receipts are not accommodated.
NOTE The above Flow-based Purchase Order Receipts are processed through the Rootstock System Transaction Object (SYDATA). The receipt process could take a few minutes to process. Please review the System Transaction records for any processing errors. See About SYDATA ("System Transaction Object") for additional details.
SEE ALSO
Freight & Landed Costs: Overview
Freight & Landed Cost: Setup
Rootstock Schema Builder - Freight and Landed Cost
Freight & Landed Cost: Standard Cost
Freight & Landed Cost: Weighted Average Cost
