Earlier in our last blog, we explored the creation of custom cost type codes within the Landed Cost module and discussed improvement of item cost allocations. Next, let’s fast-track your workflow by integrating these codes into the Auto Cost Setup in D365.

Streamlined Efficiency:

By effortlessly integrating custom cost type codes into Auto Cost, we ensure a precise and automated allocation of charges directly to items. This strategic move streamlines your shipment processes, eliminating manual efforts and accelerating cost allocations in real-time.

Tailored Precision:

Customization takes center stage as businesses utilize these integrated codes for item-specific cost allocations. Consequently, bid farewell to generic cost assignments; instead, welcome a tailored approach that mirrors the unique aspects of your product lineup.

Key Benefits:

Precision in Allocation:

Ensure accuracy by allocating costs with surgical precision. The integration of custom codes guarantees accurate accounting for each item’s cost.

Efficiency in Operations:

Automate cost allocations for a more efficient workflow. No more manual adjustments—experience the ease of a system that handles costs in real-time.

Enhanced Financial Visibility:

Enjoy a clearer financial landscape with a deep breakdown of landed costs. Custom codes provide a detailed view for better decision-making.

Pre-requisites:

Before setting up Auto cost, you have to set up the “Item Cost Type group” and “Vendor Cost Type group” and assign the Item cost type group to the Item and the Cost type group to the Vendor. To do this, follow these steps.

Vendor cost type group Setup:

1. Navigate to Landed cost > Costing setup > Vendor cost type groups.
2. Click on New.
3. In the Cost type group field, type a value.
4. In the Description field, type a value and click save.
5. Then navigate to Accounts payable > Vendors > All vendors.
6. In the list, find and select the desired vendor.
7. Expand the Miscellaneous details fast tab.
8. In the Cost type group field, select a cost type group you just created and click save.

Item cost type group Setup:

1. Navigate to Landed cost > Costing setup > Item cost type groups.
2. Click on New.
3. In the Cost type group field, type a value.
4. In the Description field, type a value.
5. Close the page.
6. Navigate to Product information management > Products > Released products.
7. In the list, find and select the desired record.
8. Expand the Purchase section.
9. In the Cost type group field, select a group you just created and click save.

Once the Vendor Cost type group and Item Cost type group is setup and allocated next thing, we need to look in is these two-apportionment method.

Volumetric Apportionment:

Volumetric apportionment method. This is how shipment companies usually calculate dimensional weight and actual weight, and then charge their users according to whichever is higher. Now, the question arising here is what Dimensional Weight is? Shipping companies usually determine the divisor for calculating Dimensional Weight, usually dividing the volume of an item by 5000 for weight in kilograms and by 138.4 for pounds, while the actual weight represents the normal weight.

Measurement Apportionment:

Next thing is measurement method this is basically for organization that don’t know the actual volume of the item, but they still need a method to calculate cost, measurement is not specific like volumetric this can be anything like height length volume size no of items etc. for understanding measurement have a look at following example.

Auto Cost Types:

Now, let’s delve into the setup of Auto Cost, which operates much like a trade agreement, allowing you to allocate specific amounts to particular items based on your business requirements. You can allocate Auto Cost to Voyages, Items, Purchase Orders, Transfer Order Lines, Ship Containers, and Folios.

Auto Cost Setup:

Header Explanation:

For a closer look at Auto Cost on Voyages, observe the settings below. Setting the “Account Code” to “All,” signify that the Auto Cost Setup applies to all created voyages. Alternatively, you can set it to a specific vendor cost type group or designate a particular shipping company by choosing “Group” or “Table,” respectively.

The “Mode of Delivery” field is the method through which the delivery occurs, whether it’s by Ocean, Air, or any custom value you’ve defined. In this setting, here it is specified as “40,” representing ocean delivery.

You can define the journey of your shipment using journey template by selecting values in the “To” and “From” fields, a separate setting in landed cost we will explore it in our future blogs.

Grid Explanation:

Moving on to the Auto Cost Grid, click on the “Add” button to create a new row. Then in the first column, specify the cost type code you created, classifying the type of cost (e.g., Duty, Freight).

The “Apportionment Method” is chosen from a predefined drop-down, determining how the cost will be allocated to your voyages—options include percentagewise, fixed amount, quantity, volumetric, measurement, and more.

Proceed to the “From” and “To” date columns to define any expiry on duty. The “Category” column determines how the apportionment will impact the voyage amount; it is a predefined drop-down linked to the “Apportionment Method” column. Options include percentage, rate, fixed, volumetric, and others.

Next column is a check box of “broken by quantity” this can be used to define the quantity breaks to allocate different cost on different quantity.

After that, there is a column for cost amount and currency code, which can be used to define the currency of values to be apportioned.

Moreover, you can also define the minimum cost if there is a requirement for a minimum cost in your cost allocation.

Additionally, if one cost is linked to another cost, like if duty is allocated as 20% of freight, you can select the percentage in the apportionment method of Duty with a cost of 20 and define freight in the linked cost.

So, this is all for Auto Cost for now we will explore more in our next blog, Happy Learning!
Thank You!

The post Landed Cost – Auto Cost Setup in Microsoft D365 Finance and Supply Chain appeared first on Impulz Technologies LLC.

Budgeting is a crucial process for any business, as it helps to plan out expenses. Budgeting helps in reaching business goals, in addition to anticipating operational changes. Without a budget, a business may experience overspending and underperformance, which could ultimately lead to the company’s closure. In this blog post, we will show you how to implement custom budget check in D365 Finance and Supply Chain using the logic of Actual vs Budget Report.

There is a standard report in D365 Finance and Supply Chain which shows the amount of budget allotted vs the amount of budget spent against an account. Users can use this report to see at multiple drill downed levels along with budget model. By using the main logic in this report, you can implement custom budget check in D365 on any out of the box process.

What is Actual vs Budget Report in D365?

D365 Actual vs Budget Report is a standard report that shows the difference between the budgeted and actual amounts for a financial account.  The user can access it from the Budgeting module, under Reports > Budget Reports > Actual vs Budget Report. You can also filter out or drill down to see the details of each transaction that contributes to the budget or actual amount. Alternatively, you can export the report to Excel or PDF format, or print it for further analysis

How to use Actual vs Budget Report’s logic for implementing budget check?

You need to understand the logic behind the report and the views that are used to calculate the data to use Actual vs Budget Report for budget check. Microsoft uses two main views for the calculating data for this report, which are PSNBudgetAnalysisBudgetView and PSNBudgetAnalysisActualView. One view shows the amount of budget allotted and one shows the actual spent amount. We will need a main account and a budget model ID against which the amounts will be calculated to find out the current value of budget amount from these views.

Use the following queries to get the amount of allotted and actual budget amounts from both of the views:

• To get the allotted budget amount, use this query:

select sum(AccountingCurrencyAmount) from psnBudgetAnalysisBudgetView

where psnBudgetAnalysisBudgetView.MainAccountId == “MainAccountId”

&& psnBudgetAnalysisBudgetView.BudgetModelId == “BudgetModelId”

• To get the actual budget amount spent, use this query:

select sum(ReportingCurrencyAmount) from psnNBudgetAnalysisActualView

where psnNBudgetAnalysisActualView.MainAccountId == “MainAccountId”

availableBudgetAmount = psnBudgetAnalysisBudgetView.AccountingCurrencyAmount – psnNBudgetAnalysisActualView.ReportingCurrencyAmount;

By taking the difference from both sum values  we will get current budget amount available for the mainAccountId.

Note:

If calculation needs to be against a specific financial dimension then add condition on the DisplayValue column in both views.

The post Dynamics 365 Finance and Supply Chain: Implement budget check via custom logic appeared first on Impulz Technologies LLC.

Calculating the cost of an item can become complex, especially when it involves various expenses associated with its shipment or transportation. It is essential to accurately incorporate these additional costs, including freight, duties, and related expenses, into the item’s actual cost to ensure precision in costing and optimal realization of profits. Microsoft D365 Finance and Supply Chain offers a sophisticated module known as Landed Cost to streamline and enhance the efficiency of this cost calculation process.

Within Dynamics 365 Finance and Supply Chain Management, the Landed Cost module enables users to define the types of costs associated with an item through the “Cost Code Type” feature. This functionality enables users to define multiple types of customized costs for allocation to an item.

So, this discussion focuses on the defining of cost type codes within the Landed Cost module and their utilization in the Auto Cost feature for the precise allocation of costs to items.

Pre-requisites of using Landed cost in D365 Finance and Supply Chain:

In order to use “Landed Cost” module in Microsoft Dynamics 365 Finance and Supply Chain you have to first enable it from Feature Management in order to do so follow these steps.

• Navigate to Feature Management Workspace.
  
•  In “All” tab search for Landed Cost.
  
• Click “Enable now”.
  
• After that you should be able to navigate to “Landed Cost” in your module list.

Step-by-step process:

• To create a new cost type code, Navigate to Landed Cost > Costing Setup > Cost type codes.
• Click on new button and define Cost type code and description accordingly.
  
• Toggle on the “Use Shipping Rate” option, as this will activate the application of exchange rates for shipments in multiple currencies, utilizing the exchange rate settings from your landed cost parameters.
  
• Select a relevant reporting category from default reporting category dropdown.
  
• After that define posting of your cost type code in my case, I want to add the freight cost in Item so I will select item in debit and will credit the vendor account.
  
• Afterward, choose a clearing account; this selection will specify the main account to which you intend to add a balance once the transactions are posted.

How to use Cost type code

Once you create the cost type code, utilize them in the “Auto Cost” feature to automatically allocate the cost to an item. You can also define specific thresholds for determining when and how to allocate the cost to an item.

Like in the below picture you can see it is defined that on 40’FCL container traveling from CNNGB(Ningbo China) to USDAL(Dallas USA) freight cost is allocated according to percentage which is 30% while duty is allocated 10% percent of freight cost and Local Transaction cost is 0.

To check the cost allocated on an Item you can click on “Cost Inquiry” under a general action pane on your voyage form.

Here the actual cost of my PO was 1929.00 USD and the BAF (Freight) Cost is 30% of 1929.00 USD which is 578.70 USD, and the Duty is 10% of BAF which is 57.87.

This is how you can use Cost type codes to allocate cost on your PO and streamline your inbound and outbound transaction costs effectively.

Thank You!

The post Microsoft Dynamics 365 Finance and Supply Chain: Set up cost type code in Landed cost module appeared first on Impulz Technologies LLC.

Landed cost is the total expense for getting goods—covering purchase price, taxes, freight and more. In Microsoft Dynamics 365 Finance and Supply Chain, Landed cost module manages import logistics, letting businesses optimize shipping, stock levels, and meet demand efficiently. This knowledge is crucial for profit calculations.

Key terms of Landed Cost Module

Key concepts of Landed cost are.

1. Voyage: Describes the movement from one place to another over a specific time from sales to purchase location.
2. Folio: A shipment from a single vendor to a specific recipient, capable of consolidation into a single container or distribution across multiple containers as per shipping needs.
3. Shipping Container: Defines pricing for cost types and contains important shipment information.
4. Cost Type: Identifies import costs like freight, duty, and insurance.
5. Auto Cost: Similar to trade agreements, associated with the voyage level.
6. Vessel: The transport medium for goods, like a ship or airplane.
7. Goods in Transit: Goods move to an in-transit warehouse upon invoice update based on configured settings.
8. Activity: Tracks significant transition steps between ports, aiding in updating dates.
9. Journey Template: Defined template for the route a vessel takes between ports.

How to Use the Landed Cost Module

Landed Cost is calculated by combining the Item Price with Shipping/Freight Costs, Customs Duties, Risk, and Operating Expenses. To start using the landed cost functionality in Microsoft Dynamics 365 you have to enable it and define some basic setup,

Enable the Landed Cost Module:

Make sure that the landed cost module is enabled in the Microsoft Dynamics 365 ecosystem. If not, a user with the role of system administrator can enable it from the feature management workspace.

How to Create a new voyage via Landed Cost:

• Begin by creating a purchase order (PO). Ensure the selected warehouse in the PO encompasses transit, quarantine, goods in transit, and under delivery designations.

• Define the delivery terms under the ‘Delivery Details’ fast tab in the PO header, selecting a term with the ‘goods in transit’ toggle activated.

• Fill in the necessary PO information and confirm the purchase order.
• Navigate to ‘Landed Cost Module > All Voyages’ and initiate a new voyage. You’ll find the PO line you’ve created.
• Here you will see the line of PO you just created.

• Select the line and click ‘Add to Staging,’ then click on ‘Add to New Shipping Container.’
• Select a shipping container, Journey Template, and ship date.

• Upon confirmation, you will receive a success message indicating the creation of your voyage with a ‘Created’ status.

• Explore ‘Tracking’ in the inquiries section of the general tab to monitor the delivery activities involved.

• The estimated dates and days, populated through the journey template, will update as you input the actual dates.

More on landed cost like setting up journey templates and cost type setup will be covered in a future blog.

Thank You!

The post Dynamics 365 Finance and Supply Chain – Create voyages in Landed cost module appeared first on Impulz Technologies LLC.