New Feature
Currently, AscentERP tracks what is called “Material Cost”. So everywhere in AscentERP where you see Cost or Cost(4) (sales line, packed sales order lines, lots, item master) you might see purchase price or something else. In all of these places this value represents the material cost, and typically these values come from a Receive PO or a Production Work Order build. Sometimes a user will enter these values manually. Regardless this value represents the cost of the actual physical material.
AscentERP now has a new feature called “Total Landed Cost”. This total landed cost is the total price of a product once it has arrived at a buyer's door or has been fully manufactured. The landed cost includes the original price of the product, all transportation fees (both inland and ocean), customs, duties, taxes, insurance, currency conversion, crating, handling and payment fees.
In order to provide flexibility in the calculation of total landed cost, some fees may be fixed price fees, while others may be weight based fees. These fees are recorded at the purchase order header level and then assigned proportionally as follows to each purchase order line when it the PO line is received:
Weight Based Landed Cost - Total weight of received PO line vs. the total weight of the entire purchase order will determine the % of the fees are applied to the received PO line.
Price Based Landed Cost - The extended price of the line vs. the extended price of the purchase order will determine the % of the fees are applied to the received PO line.
Finally, the new landed cost based calculations respect the cost type configuration of the item master. For example, when an item is configured for average cost, the the landed cost type calculations will also be aggregated in the same way when calculating costs at the item master and lot level.
Accessing the New Feature
For the most part, there is no new configuration to turn on the calculation of PO Landed Cost. But there is one new custom setting, Use PO Landed Cost, which controls how PO Landed Cost is utilized within the rest of AscentERP:
If checked then everywhere Item.Cost or Item.Cost(4) is used, it is replaced with Total Landed Cost from Item Master. And everywhere that Lot.Purchase Price or Lot.Purchase Price(4) or Lot.Average Cost is used, then the Lot.Total Landed Cost. (SO line create, Pack So Line, Staging Order Line, PWO Build, Inventory Adjust, Count Journal, Movement Line, Transfer Order, PO Line, BOM Line Create, Rollup of BOM Lines, Bom Depletion Lines, etc.) is used in place of the lot purchase price or cost fields.
First Example: Creating and receiving purchase orders that utilizes an item configured as an Average Cost Item:
First setup of an item master to use Average Cost:
After initial setup, notice the Non-Material Cost/Fees is not set and Total Landed Cost is not set. Also, the Net Weight of the item is also not set. Now create and receive a purchase order using the newly create
As can been seen, in the screenshot of the purchase order, a total weight based fee of $1.00 and a total price based fee of $1.00 has been assigned to the purchase order. Reviewing how receiving the purchase order has impacted the received purchase order line, the lot, and the item master:
The received purchase or
The first thing that stands out is that there are no recorded weight based fees calculated. This is because no weight was assigned to the item during item setup. So it is very important that if weight based fees are going to be used, that the item master is correctly assigned a proper weight for the item!
The Recorded Price Based Fee is correctly set to $1.00 for the line as this is the only line for the order. The Landed Price is correctly calculated as $6.20. $6.00 purchase price + ($1.00 Recorded Price Based Fees/ 5 Quantity Received).
Now, the lot level costing calculations: 
The total landed cost for the lot is correctly calculated ($6.20 landed cost x 5 items). The Non-Material costs/fee is reflective of the per item fees, so that value is also correct, $0.20 ($1.00/5 items received).
The average cost also continues to reflect the purchase price of the items received on the initial order.
Finally, item master cost calculations:
Again, after the Total Landed Cost and Non-Material Cost/Fees are correctly calculated, they match the calculations at the received purchase order line.
To see the effects of the Average Cost calculations on Landed Cost and Non-Material Cost Fees, create a second PO purchase order and receive the PO line. But before doing so, assign a net weight to the PEARS item master, so that weight based fees contribute to the landed cost calculations in this example.
Item Master after assigning Net
Creating a new PO and receiving the PO (#2)
In this PO, the item PEARS was purchased at a price of $7.00/unit instead of $6.00 in the previous purchase order. Now, reviewing the calculations for the received purchase order line, lot, and item master:
Received Purchase Order Line (P
Now that the net weight has been set on the item master, the weight based fee is now reflected in the Non-Material Cost/Fee calculations. The recorded weight based fee is correct, $1.00 ( 5.00 total line received weight/ 5.00 total PO received weight) x $1.00 PO weight based fees.
The Landed Price now reflects both the recorded weight based and priced based fees. $7.40. ( $7.00 purchase price + ($1.00 weight based fee/5 quantity received) + ($1.00 price based fee/5 quantity received).
The Total Landed Price is correct, $37.00 = ($7.00 purchase price x 5 quantity received + $1.00 weight based fees + $1.00 price based fees)
Lot Level Cost Calculations (PO #2)
The calculations are now impacted by the item master being configured as cost type equal to Average Cost:
Non-Material Costs Fee/Unit ($.30) = ($0.20 (previous value) x 5 (quantity previously received)) +
(.40 (Non-Material Costs/Fee for received PO line) x 5 (quantity received)) / 10 (units in lot).
Total Landed Costs ($68.00) = Average Cost of Lot + (Non-Material Cost Fees) x 10 (units in lot)
Item Level Cost Calculations (PO #2)
Cost ($6.50) = Average Cost for the item ((6.00 x 5) + (7.00 x 5)) = $6.50
Non Material Cost Fees ($0.30) = (($0.20 (previous) x 5) + (0.40 (current) x 5))/(10 total) = $0.30
Total Landed Cost = Cost ($6.50) + Non-Material Cost Fees (0.30) = $6.80.
Second Example: Creating and receiving purchase orders that utilize multiple lines configured with items using standard cost and last cost.
Creation of a new item using cost type: Standard Cost
Creation of new item using cost type:
Creation of Received Purchase Order with Order with 2 Line Items
Received Purchase Order Line for Item Raspberries:
Recorded Weight Based Fees = (Total Line Received Weight)/Total PO Received Weight) x PO Weight Based Fees = 5.0/10.0 x $1.00 = $0.50
Recorded Price Based Fees = (Total Line Extended Price/ Total PO Extended Price) x PO Based Price Fees = ($60/$130) x $1.00 = $0.46
Total Landed Price = Total Line Extended Price + (Recorded Weight Based Fees + Recorded Price Based Fees) = ($60.00 + (0.50 +0.46) = $60.96
Received Purchase Order Line for Item Cherries:
Recorded Weight Based Fees = (Total Line Received Weight)/Total PO Received Weight) x PO Weight Based Fees = 5.0/10.0 x $1.00 = $0.50
Recorded Price Based Fees = (Total Line Extended Price/ Total PO Extended Price) x PO Based Price Fees = ($70/$130) x $1.00 = $0.54
Total Landed Price = Total Line Extended Price + (Recorded Weight Based Fees + Recorded Price Based Fees) = ($70.00 + (0.50 +0.54) = $71.04
Lot Costing for Item Raspberries:
Non Material Cost/Fees = Same as Received PO Line
Total Landed Cost = Same as Received PO Line
Lot Costing for Item Cherries
Non Material Cost/Fees = Same as Received PO Line
Total Landed Cost = Same as Received PO Line
Item Costing for Raspberries
Cost = Unchanged (Cost Type = Standard Cost) = $5.00
Non-Material Cost/Fees = None (Cost Type = Standard Cost)
Total Landed Cost = None (Cost Type = Standard Cost)
Item Costing for Cherries
Cost = Received Purchase Order Line Price (Cost Type = Last Cost) = $7.00
Non-Material Cost Fees = Received Purchase Order Line Non-Material Cost/Fees = 0.104
Total Landed Cost = Cost + Non-Material Cost Fees = $7.00 + $0.104 = $7.104
Creation of 2nd Purchase Order with Multiple PO Lines
Received Purchase Order Line for Raspberries
Recorded Weight Based Fees = (Total Line Received Weight)/Total PO Received Weight) x PO Weight Based Fees = 5.0/10.0 x $2.00 = $1.00
Recorded Price Based Fees = (Total Line Extended Price/ Total PO Extended Price) x PO Based Price Fees = ($80/$150) x $2.00 = $1.07
Total Landed Price = Total Line Extended Price + (Recorded Weight Based Fees + Recorded Price Based Fees) = ($70.00 + ($1.00 +$1.07) = $82.07
Received Purchase Order Line for Cherries:
Recorded Weight Based Fees = (Total Line Received Weight)/Total PO Received Weight) x PO Weight Based Fees = 5.0/10.0 x $2.00 = $1.00
Recorded Price Based Fees = (Total Line Extended Price/ Total PO Extended Price) x PO Based Price Fees = ($70/$150) x $2.00 = $0.93
Total Landed Price = Total Line Extended Price + (Recorded Weight Based Fees + Recorded Price Based Fees) = ($70.00 + (1.00 +0.93) = $71.93
Lot Cost Information for Raspberries
Non-Material Cost/Fees = Average Cost of Non-Material Cost Fees =
(0.96 previous)/10 + 2.07 (current) / 10 = 0.1515
Total Landed Cost = (Previous Landed Cost) + Current Landed Cost = $60.96 + 72.07 = $143.03
Lot Cost Information for Cherries
Non-Material Cost/Fees = Average Cost of Non-Material Cost Fees =
(1.04 previous)/10 + 1.93 (current) / 10 = 0.1485
Total Landed Cost = (Previous Landed Cost) + Current Landed Cost =
$71.04 + 71.93 = $142.97
Item Cost Information for Raspberries
Cost = Unchanged (Cost Type = Standard Cost) = $5.00
Non-Material Cost/Fees = None (Cost Type = Standard Cost)
Total Landed Cost = None (Cost Type = Standard Cost)
Item Cost Information for Cherries
Cost = Received Purchase Order Line Price (Cost Type = Last Cost) = $7.00
Non-Material Cost Fees = Received Purchase Order Line Non-Material Cost/Fees = 0.193
Total Landed Cost = Cost + Non-Material Cost Fees = $7.00 + $0.193 = $7.193
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