Epicor Financial group has always stated that Landed Cost can not be used with standard cost. Is anyone using landed cost with Standard cost and if so is it working correctly and what are you doing.
We enter containers but do not have landed cost turned on
From what I know, the concepts of Standard costing and Landed costs are on opposite ends of the spectrumâŚ
Landed cost allows the extra cost of importing, freight, etc to be included over and above the purchase price of a part. Therefore, a part purchased for $1 each at $1000, with a $500 import fee would result in a $1.5 per unit price due to landed costâŚ
BUT if this same transaction were to happen for Standard, the cost would still be at whatever the standard cost of the part is, no matter the purchase price or import fees. All âExtraâ costs will still go to a variance account.
If you want to stay standard cost, you might want to look at Material Burden. Itâs not as exact as Landed but at least you could distribute some amount of those costs when the parts are received.
@timshuwy is correct, but Iâll restate it as âlanded and std cost are not mutually exclusive, itâs that landed cost transactions do not affect the std cost as they will affect the avg/last cost.â
The system maintains avg and last costs with every cost transaction, regardless of cost method on the part. As stated, std cost is set by you and the system will never alter it - you have to change it.
@Mark_Wonsil is also correct in that you could alter the burden values to compensate for additional cost. We did this for years where a cost accountant would review all receipts for the week, slice and dice the freight costs (that we paid for delivery) and alter the burden (or std) costs manually for those parts based on a series of rules.
It wasnât until about a month ago that we were reverse engineering his macro-laden XLS workbook that I realized that he was really just doing some complicated version of AVG costing. So I called them all together to do a mathematical proof to show they were just AVG costing, and ask that we convert all those parts to AVG costing and start doing landed cost transactions. We could save a whole day per week in productivity. We are currently in a middle of a large volume test in the Test DB to let them prove to themselves that I am correct 
Just came across this one, and wondering if anyone can point to a specific reference, (technical reference or other) that confirms this.
Hi !
I have standard cost at a customer with landed cost and it seems to be working fine (E10.1.400.12). What you have to do in order for this to work is to go on site costing and activate the checkbox (Enable fifo layers ⌠something). I know, itâs crazy but it does the job 
How it will work:
a. when you make a receipt , stock goes in at standard and difference from PO price goes to cost difference account;
b. when entering landed cost, the whole value will go also on price difference account.
The fun part is when you sell the goods - they get out at standard (which is good) and whatever was booked on price difference stays there (wrong). So at end of the month you need to do a calculation of how much of the price difference you need to book on expenses (manual booking) based on stock value at beginning of the month, input and output and actual price difference account. This is something your accountant/costing guy should know / be able to find.
Why you use this K coefficient - here is one example: beginning of month you have 0 stock, you buy something for 110 USD but standard cost is 100. You book 100 on stock, 10 on price difference. Then you sell it and book 100 on costs (standard). This is good but not enough - you need to book also the remaining 10 on expenses to have the expense value.
Now multiply this with tens of thousands of transactions and you will see it is hard to do it product by product so the accounting work-around: calculate the coefficient at end of month (letâs say itâs 32%) and then you also book 32% of price difference of expenses. That is even if what you sold maybe had no price difference when purchased but all in all, when you sell all your stock also the price difference for it will be gone.
I hope this helps.
Best regards,
Mihai
@MikeGross
We are trying to look for ways to add freight costs at receipt. How did you or the cost accountant do this? Did you perform a cost adjustment on Material Burden for the all the parts received? If yes, will a cost roll also needs to be performed after this?
Honestly, weâve not fixed this part 100%. My post was about the AR side of the process, but the AP/Inventory side is still kind of an issue.
Our position is more philosophical. Almost 100% of our inbound freight expense is for raw materials, and the little bit thatâs not, is some intercompany parcel stuff. All other freight is outbound and either applies to an order, or is straight up shipping expense and lands in the general overhead.
So, we treat all the inbound freight as a separate Inventory expense and build it back into the burden at year-end. There are a few outliers like when we bring in new machinery and the freight bill is HUGE, those are handled on their own and do not hit the material burden.
Hi Mike,
Thank you for taking the time to provide your input. We have been applying the same approach to our inbound freight. However, we would like to add it to the Partâs MtlBurden cost upon receipt. We are currently trying to understand the process and assess any additional changes this might entail.
Sounds like a nice BPM/Function combination would do what you want. We donât get the freight charges quickly enough and the material might already be used by the time we have the $$, so adjusting the burden in near real time wouldnât be possible for us.