Landed costs are additional charges that are incurred in delivering an individual item into inventory. Landed costs cannot be applied to the total cost of a purchase order, and are also non taxable.
In order to set up landed cost, you should set up the following options for the Purchase Order program P4310 (see the Chapter 4, Setting up purchase orders recipe in order to do this):
When you set up the cost rule, you can allocate the landed cost for a specific item and branch/plant. After you create a cost rule, you can link it to an inventory item, vendor, and purchase order. You can also track the actual cost of purchasing an item. When you assign landed costs to an item or cost rule, you classify the calculation for each landed cost. The landed costs can be added based on a percentage of the unit price, the amount of the items, and also based on a specific rate.
You can use GL class code to verify the general ledger accounts—to see which system created journal entries for landed costs. The AAI tables 4385 and 4390 are used to create landed cost journals.