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Drop Ship Order Landed Costs

  • 1.  Drop Ship Order Landed Costs

    SILVER CONTRIBUTOR
    Posted May 15, 2014 09:10 AM
    Does anyone know of a way to absorb landed costs to inventory included on a Drop Ship order, just as you would on a normal inventory receipt? We have not utilized GP's drop ship sales/purchase order method because it appears there is no way to include landed costs in the value of the inventory involved in the transaction. Are we missing something or has anyone found a workaround?

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    Joe Scheidecker
    Senior Cost Analytics Specialist
    Tenacious Holdings, Inc. (Ergodyne)
    St. Paul MN
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    Academy - Online Interactive Learning from Experts


  • 2.  RE: Drop Ship Order Landed Costs

    TOP CONTRIBUTOR
    Posted 16 days ago
    Hello Everybody.
    I hope it's ok to reply to an old post - - we have run into this same issue with drop-shipments - -
    Has anyone found a way to apply landed costs to a drop-ship PO?
    Kind regards,

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    Maria Frandzeskakis
    IT Manager
    MIP Inc.
    Anjou QC
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    Academy - Online Interactive Learning from Experts


  • 3.  RE: Drop Ship Order Landed Costs

    TOP CONTRIBUTOR
    Posted 15 days ago
    Hi @Joe Scheidecker,

    Landed costs are assigned at the receiving level, and drop ship items are not received inside of GP.  Unfortunately that means landed costs can't be added in the traditional sense.

    There's a short Microsoft article that talks about this very briefly, and I've included that link below.  The Workaround suggested in the article is that you include the landed cost amount in the Freight line and edit the GL Account.  Not a great answer admittedly, but I didn't want to leave you and @Maria Frandzeskakis with no responses.

    https://support.microsoft.com/en-us/help/4049365/can-i-add-a-landed-cost-to-a-drop-ship-po​​

    Thanks,

    Samantha

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    Samantha Higdon ,CPA,CGMA
    Consultant
    Lagom, LLC
    Carmel IN
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    Academy - Online Interactive Learning from Experts


  • 4.  RE: Drop Ship Order Landed Costs

    TOP CONTRIBUTOR
    Posted 15 days ago
    Thanks @Samantha Higdon
    Yes, we did see this workaround from Microsoft.
    We may have to do something like they suggest, and at least our financials will be correct.
    I think we are hoping to capture the full cost of the item, at the sales trx line level, so the gross margin by item is correct. Using the work around will show inflated gross margins on the sales side. (We also pay some commissions based on margins so there will be a lot of adjustments).
    Thank you for replying. It surprises me that there aren't more posts on this topic but perhaps we are working different than most companies.
    Kind regards,

    ------------------------------
    Maria Frandzeskakis
    IT Manager
    MIP Inc.
    Anjou QC
    ------------------------------

    Academy - Online Interactive Learning from Experts


  • 5.  RE: Drop Ship Order Landed Costs

    Posted 15 days ago
    Hi @Maria Frandzeskakis and @Joe Scheidecker

    We have a custom proposal in the queue that provides a solution for this. If you are interested in ​learning more about it, feel free to reach out and I'd be happy to help.

    Troy Gullacher
    WilloWare Inc.



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    Troy Gullacher
    WilloWare, Inc.
    Wapella IL
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    Academy - Online Interactive Learning from Experts


  • 6.  RE: Drop Ship Order Landed Costs

    TOP CONTRIBUTOR
    Posted 14 days ago
    I've never seen any reason to use the SOP drop ship check box functionality. It is confusing for the staff, hard to reconcile the GL account, does not support LC and on and on.
    So for that matter, we strictly use a warehouse/Site ID called DROPSHIP with its dropship GL account segment override and run all dropships through the same process as standard fulfillment inventory.
    The staff merely choose DROPSHIP as the fulfillment warehouse. Because there is no physical receiving,the vendor invoices are Shipment/invoiced and any balance of IV in the DROPSHIP site through Smartlist or the IV StockStatus tells the dropship manager that these items must be invoiced to the customer.
    The DROPSHIP GL account is easy to reconcile has it has its own stock status.
    Many vendors provide edi ASN so we then go ahead and Receive the items to DROPSHIP so the customer can be invoiced based on the ASN. We then can SOP Invoice the customer, before receiving the vendor invoice which some times is a week or more after ASN.
    LC of course works in all respects just as it should.
    In fact, if look back I have not used drop ship  since around GP Version 6.0 when Landed Costs came over to GP from the Intellisol APOP feature set and did not work with dropship then either.

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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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    Academy - Online Interactive Learning from Experts


  • 7.  RE: Drop Ship Order Landed Costs

    GPUG ALL STAR
    Posted 14 days ago
    Edited by Mariano Gomez Bent 14 days ago
    Thaddeus, this is in fact my preferred method of dealing with it all. Even if you are not getting ASNs, any vendor shipment notification can be entered as a shipment/receipt against that DROPSHIP warehouse, with LC working as you mentioned.

    Now, for the stubborn folks out there, you can also setup LC and unmark the option to Invoice Match. Unfortunately, this means you will have to have a set of LC records for physical receipts, and a set for drop-ships even if they are for the same vendor. Also, for the Accrued Purchases Account you can very well go and use your inventory account or a clearing account if you are the type that loves to reconcile stuff.

    I wrote up a nice article on Landed Cost based on a forum post many years ago, but I believe accounting is still accounting, so it's still relevant:
    https://dynamicsgpblogster.blogspot.com/2008/07/to-check-or-not-to-check-understanding.html

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    Mariano Gomez Bent, MVP, Dynamics Credentialed Professional
    Director of Technology
    Mekorma
    ROSWELL GA
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    Academy - Online Interactive Learning from Experts


  • 8.  RE: Drop Ship Order Landed Costs

    TOP CONTRIBUTOR
    Posted 14 days ago
    I'm with you Mariano, Even go so far as to make the Drop Ship check box editable = false in the scrolling window and the sop line detail window.
    That way no one can even click on it!



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    Thaddeus Suter
    Retus, Inc
    HELOTES TX
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    Academy - Online Interactive Learning from Experts


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