Incorporate all shipping charges into the cost of purchased part

Hello there

I’m working on a distribution company that buys products from all over the world and distributes/sells them in wholesale and retail.

I’d like to include all costs associated with purchases, such as import duties, Railway Development Levy (RDL), Custom Processing Fee (CPF), Excise, and so on. As a result, all costs become part of the product cost, allowing me to calculate the product selling price and thus margin.

Unfortunately, the product cost does not include any additional charges when receiving the product. Please advise me on how to proceed to arrive at my expectation using ERP-Epicor Kinetic. The following are the steps I take.

Step 1
As shown below, I created a purchased part and assigned it to a Group, Class, and HS Commodity.

Step 2
I created a PO (Purchase) order for the above item with a quantity of 100 and a unit price of TZS 500, bringing the total price to TZS 50,000,

Step 3
I completed the receiving entry process for my PO

Step 3 sub i
I added other landed costs, such as RDL and CPF, after receiving my PO in Receipt entry.

Step 3 sub ii
As a result, the total landed costs are shown below under receipt entry.

Step 4
For this inwards inventory, I printed an inventory report. My expectation was to see the cost of the product cost plus all other fees/charges. But this was different. The prices have not changed (i.e 500)

Please assist if you know how to go about this

You will need the Landed Cost module to do this if you do not already have it.

Thank Chris, I already have this module and i added landed cost…only the cost are not roll over to the cost of part

After adding the landed costs to the receipt, did you “disburse costs”? There should be a button for this that spreads out the cost to the receipt lines.

As Zach has said you need to disburse the costs if you havn’t. Other thing from you process above it looks like you may have added the costs after the receipt was made.

All costs need to be added and disbursed before the receipt is made. If not anything added will go to variance. If you don’t have the costs before receipt you can add an estimated cost and reconcile after you get the invoices to get most of the costs onto your parts.

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Also check your costing method on the part. landed cost works well with AVG costing to update the part costs and run against the Gross Margin reports but it looks like you are using STD costs based on your part setup. I believe you would need to do a cost update on the STD cost after the receipt.

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YES. I Diburse costs and on the window I can clearly see applied cost to each unit. The thing when i print report the cost display is the one from Purchase order entry

Did you add charges to your shipment class? That way they can be defaulted, and updated when you load the PO before you do the disbursement.

Hellow Chris,
I entered the packing slip number from the receipt entry after selecting the Purchase I want to receive, then saved. After that, I call the lines from the action menu “mass receipt,” and all the lines appear with the rates associated with the HS commodities. And since the calculation has already been done, the only thing left for me to do is to disburse the cost and apply the landed costs. Unless there’s a different way to enter the costs before calling the receipt lines? Please help.

I tried set one part with Standard cost and another with Average to see the effect on cost but still i did not succussed

PO → Landed Cost Entry - >enter/update any costs ->Disburse->set landed cost container to arrived->Landed Cost Receipt entry

YES @Hally i have added supplier shipment class

and any misc charges?

Can you show me the Landed Costs tab from Container Landed Cost entry from your test?