Landed Costs in SAP Business ByDesign – Actual Costing
This blog post is part of a series of related blog posts highlighting the enhancements to address the handling of landed costs. Link to main blog post.
The objective of this blog post is to briefly explain the enhancements made to actual costing regarding landed cost capabilities:
- The goods receipts include to be capitalized planned landed costs
- The landed cost variances that are cleared to material ledger are taken into consideration in the actual cost estimate for raw materials
The actual costing in combination with landed costs is available in SAP Business ByDesign 2211 hot fix collection 2. The reason not enabling it from the very beginning in release 2211 is simple. We couldn’t complete the end-to-end testing in time. Now that testing it is completed the capability is made available, and the scoping check and constraint will be removed.
The following screen shots highlight the enhancement. Please note the in the actual costing raw material estimate now includes the impact of landed cost clearing.
Actual costing in combination with landed costs supports materials with perpetual cost method:
- Moving average
- Standard cost
for the to be capitalized landed cost categories.
This applies for landed cost clearing amounts that originate as deviations from planned landed costs and landed cost allocations or as cleared unplanned landed costs that have been allocated.
Please note the specific situations you need to be aware at period end. These scenarios also do occur for GR/IR clearing in a similar way. Actual costing computes average purely period costs.
Envision a goods receipt at the very end of your period N. The landed cost invoice arrives in the period N+1 thereafter, is allocated and finally cleared. In case you are calculation actual costs on a periodic basis:
- In period N on the goods receipt with planned landed costs (to be capitalized) are considered. Not the landed clearing variances that are posted in period N+1
- In period N+1 only the landed cost clearing is taken as period cost into consideration. Not the initial goods receipt that has been posted in the previous period N.
The landed cost clearing amounts can be regarded as an addition source of procurement variances that are included in the actual cost raw material cost estimate.