Landed costs management
Advanced and Flexible Solution for Landed Costs Management in Dynamics 365 F&O/AX
Not so long ago, the landed costs were just one insignificant line among voluminous general expenses. Today, when businesses are expanding globally and international sales are rapidly growing, the importance of landed costs has increased even more. However, standard Microsoft Dynamics 365/AX functionality became way too exhausting and time-consuming for many modern international businesses. Moreover, there is no functionality to plan your landed costs, which is very important for big trading and distribution companies. So, GO-ERP created an advanced solution to allocate numerous invoices flexibly.
The solution is designed for distribution, retail, trade, and other companies that are moving goods across international borders in large quantities. Proper control and automation of the landed costs management process helps these companies to maximize the profit margin, save a lot of time and avoid mistakes. Opportunity to plan landed costs in advance gives way more control over your budget by letting to notice even the slightest deviation of landed costs.
Pain points of Dynamics 365 Standard users
Using the standard system’s functionality users have no accuracy, no tracking, and no correction options. Moreover, it’s a mostly manual and time-consuming process. Also, when it comes to transportation, the standard Dynamics 365 process concerns only the costs which are directly related to transportation. While the other costs such as insurance, customs, etc. must be entered manually across the invoice lines. Therefore, this standard solution might seem not flexible enough and sometimes limit business process needs.
Solution and it’s benefits
GO-ERP’s landed cost management solution solves every pain point mentioned above and turns it into its benefits. The solution assures high accuracy, tracking option, easy editing, automated and fast process. It is enriched with new functionalities necessary for precise and easy landed cost management. For example, flexible filters allow precise selection of the lines to be allocated. Additionally, you may choose the allocation method. Also, a simple and convenient reversal of landed costs is now allowed. Moreover, application is enriched with planed landed costs functionality that allows user to have more control over the budget and quickly notice even the slightest deviation. Finally, the solution supports multi-currency operations.
Allocation of planned landed costs
- Ability to group purchase orders into load;
- Ability to set up the settings of planned costs;
- Ability to automatically add planed landed costs to load’s;
- Ability to form and register documents of planned landed costs;
- Ability to match planned and actual landed costs;
- Ability to compare and analyze planned and actual landed costs difference;
- Ability to see clear and accurate item cost and cash flow.
Allocation of actual landed costs
- Ability to post invoice through different types: purchase order, vendor invoice journal, general journal or invoice register;
- Ability to create misc. charges record both automated and manually;
- Ability to allocate misc. charges by the quantity of items, total amount, volume, weight or per line;
- Ability to allocate an amount to different vendors and different invoice lines by one click;
- Ability to model and manually edit the allocation of misc. charges;
- Ability to do the partial allocation of misc. charges, the unallocated amount is visible;
- Reversal of misc. charges are automated;
- Ability to generate an audit trail report with detailed transaction information;
- Ability to allocate misc. charges on a sales invoice.
Actual landed costs allocation process comparison
Dynamics 365 F&O Standard Process
DRAWBACK: STANDARD ALLOCATION PROCESS IS VALID ONLY FOR INVOICES, WITH NO OPPORTUNITY TO ALLOCATE SEPARATE INVOICE LINES.
GO-ERP Optimized Process
BENEFIT: THERE IS NO NEED TO REPEAT THE PROCESS MULTIPLE TIMES. YOU CAN SELECT AND ALLOCATE AS MANY INVOICES LINES AS YOU HAVE.
Ability to plan and manage landed costs
The ability to plan landed costs posting is a small but important step in your typical landed cost allocation process. However, the use of this function isn’t mandatory and can be easily skipped if it is not relevant to your company.
The more invoices you have, the more you save
We have measured the “before” and “after” metrics for a typical actual landed cost allocation process. Apparently, the more invoices you have – the more you save. Moreover, you can accelerate the allocation of landed costs by 25 times, and reverse – more than 200 times! Basically, it only depends on the number of purchase invoices.
Audio-Technica is a worldwide group of companies devoted to the design and manufacture of high-quality audio equipment. The company also distributes and retails it’s products worldwide.
“I am very satisfied with the module for miscellaneous charges. It is really time effective. Finally no more mistakes in splitting the freights and Duty Charges. Duty can easily be applied only to a product if needed. A complicated triangulation of 3 currencies can be now matched in a blink of an eye, without the module it would take much longer. I really like the fact that I can see immediately the different charges added to an invoice, it avoids duplicate charges applied to an invoice. Definitively recommend the module.“
Simona Bruno, Purchase Ledger Controller at Audio-Technica