Are you a company owner or logistics manager and have own production or vendor located far from you? And it’s time to planned to supply a container with goods to the warehouse. Is it possible to predict and track the dates of it’s movement to the warehouse, calculate charges?

When the container is shipped from the vendor, the ship is sailing, unloads and clears the customs. From the port, it is carried by local transport to the end point. How would you track this movement? What about charges at every step? If there are hundreds of such shipments and containers?

For many companies, the transfer of ownership at the time of sale is very important. This means paying for the goods and waiting for delivery to the warehouse. This delivery can take several months. Based on the experience of working with one of the clients of our company, it is clear that delivery can take up to 2 months.

And again, in real life, there are moments when the goods are registered in the warehouse and a shortage or overdelivery of products is detected. What should be done about this incident? Accept the shortage and pay the full cost of this delivery and write off the goods from the warehouse or claim a refund for this vendor oversight.

With the Landed Cost module in Dynamics 365 F&O this is easy and simple!

This module is applicable only for the work with inbound orders, most importantly, it can be used to track both the financial component and logistics. In video below, we will go through such processes together:

  • I order two models of smartphone from Shanghai electric company to the main warehouse in Kyiv city. Transportation by sea takes place from the seaport of Shanghai to the seaport in Odessa.
  • I create a shipping container and split the purchase order into different parts. At this time system create new voyage and it’s easy to work with this order, because we have all information in one place (statuses, invoiced PO order or not, who is shipper of the goods).

  • If we have previously experience with delivery terms for journey, the estimated duration of each stage can be entered into the system and automatically calculate when entering the start date. This gives us an understanding of when our cargo is coming to us. And entering the actual dates will predict the date of arrival as accurately as possible.
  • Next step is pay for order and post invoice in Dynamics, goods will presumably sail to me for a little more than a month, but the ownership passes to me at the time of loading it into the container in Shanghai. Now all that’s left is to wait… A month passed and the ship arrived in the port of Odessa. Clear customs and by trucks delivered to the warehouse in Kyiv.
  • Warehouse workers register goods by Microsoft warehouse app (if it’s interesting, you could watch our other video or read articles).
Landed cost module 2
  • And employees haven’t found 2 smartphones that should be in the order, but the invoice has already been posted in the system. No problem with that! In one action, you can issue an invoice for a refund to the vendor (by creating an order with a negative quantity) or write off this quantity from the warehouse using a loss or reject journal with one click!

  • I received an email from the carrier company with an invoice. We must enter them into the system and tie them under this voyage in order to make the correct cost of goods. I pay for service and entered in to system actual cost of service (We could set up estimated price to be able to predict the total cost of the goods).

Landed cost module 3
  • Of course, there are many reports in the system that speed up and simplify my work at times.

Conclusion

This module solves all problems that businesses face with wholesales orders, when it is necessary to control the supply chain. Great solution from Microsoft for real control of voyage and the ability to work in one convenient system and forget about a lot of excel tables for tracking cargo and calculation of the cost of goods. More information can be found at Microsoft Docs. Feel free to contact us, as we are always happy to help your business and introduce the most modern and progressive technologies.

Article was prepared by:

Sam
SamDykukha
Consultant, OntargIT
Published On: June 20th, 2022 / Categories: Articles /

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