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| These landing factors can be set up in
any currency, not necessarily withstanding the currency
of the supplier from whom the product was purchased. |
The landing factors can be set up to be related to particular
line items on your inventory bill, or they can be set
up to apply to all line items on the inventory bill. If
they are set up to apply to all line items on the inventory
bill, there is flexibility as to how the costs are distributed
across those parts. They can be distributed based on the
relative units of the various items purchased, the relative
weights of the various items purchased or the relative
values of the various items purchased. |
(An example here, freight company XYZ might charge a fixed
freight landing factor of $200 to deliver product from
your supplier which you would like to distribute across
the items purchased based on the relative weights of those
items. Thus if you bought 100 pounds of product A and
300 pounds of product B, $50 of the landing factor charge
would be added to the asset value of product A and $150
of the landing factor charge would be added to the asset
value of product B). |
The system provides mechanisms to charge the extra costs
either to cost accounts associated with the landing factor,
or to cost accounts associated with the parts to which
the landing factors apply. |
The user also has the option of setting up the landing
factors so that they can generate their own interim liabilities.
That is, there will be a separate inventory bill for the
landing factor which can be reconciled to the bill from
the supplier of the landing factor service when it arrives.
(To follow up on our previous example, you could have
the landing factor set up so that it generated an interim
liability of $200 for freight company XYZ. When the bill
from freight company XYZ arrives you can use the supplier
bills option to turn that interim liability into a payable). |
The landing factors can be entered either at inventory
bill time or when creating the initial purchase order.
We can provide modifications to your purchase order form
which will allow some copies of the form (presumably the
ones designated for in-house use) to reflect landing factor
information while other copies (presumably the ones sent
to suppliers) do not reflect that information. |
There is a template function which allows the user to
set up default landing factors to use based on the warehouse
receiving the product, the supplier providing the product
and optionally the parts being purchased. There are also
options to set up global default values which would apply
to all suppliers. |
In addition to providing landing factor functionality
at the purchase order level, we have also extended the
functionality to be available in the sales order process.
The functionality is very similar except in terms of recognizing
the debit side of the landing factor cost transaction.
For purchase orders, the extra costs are added to the
asset value of the parts involved in the transaction.
Of course in the sales process, this does not make sense
as the parts in question are being removed from inventory.
For sales order landing factors, the landing factor debit
is posted to the asset account of the landing factor and
the cost is recognized as a sales cost in the sales detail
files. This allows for inclusion of landing factor costs
when reviewing gross margins in Minotaur sales reports. |
Please contact us if you are interested in mechanisms
to allow you to more accurately handle the extra costs
associated with your purchasing or sales transactions. |
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