Purchasing A/P Exercise

Unit: Purchasing –A/P
Topic: Landed Costs
At the conclusion of this exercise, you will be able to:
Set up a purchasing process using the landed cost functionality

....And here is the rest of it.


A vendor delivered 10 mountain bikes to you. After you added the goods receipt PO in the system a broker is charging you shipping costs for the delivery. Therefore you want to recalculate the cost price of the delivered items.

2-1 You have a vendor S1008 that is located in the Netherlands. Your vendor S1008 delivers 10 mountain bikes (new item T500).

2-1-1 The ItemNo. T500 does not exist in the system yet, you have to create it at first. You purchase the mountain bikes for 2000 EUR per item and each bike weights 10,2 kg. Create the item master record.

2-1-2 Post a goods receipt PO for 10 mountain bikes (T500). The mountain bikes were delivered by Vendor S1008.

2-1-3 Later on you receive the invoice from the vendor. Post the invoice with reference to the goods receipt PO.

2-1-4 Check the cost price of your mountain bike. What is the Cost price of Item No. T500?

2-2 Your vendorS1008 instructed vendor UPS to arrange the delivery. UPS bills 1000 EUR for shipping cost for the whole delivery. These costs should be included in the cost price of the delivered item.

2-2-1 Create a landed costs document for Vendor S1008 referring to the goods receipt PO from exercise number 2-1-1.
The broker is UPS. May be there doesn’t exist a master record for him so you have to create it from the landed costs document.

2-2-2 Enter the shipping costs of 1000 on the costs tab page. You want to allocate the costs by weight!

2-2-3 Add the document and check again the cost price of item T500. Did the cost price of Item No. T500 change?

2-2-4 Call up again the Landed Costs document and create the journal entry in order to update the cost price. Use Business Partner UPS as offsetting account and add the document.

2-2-5 Check again if the cost price of Item No. T500 has been changed?