Change Expense Account for Landed Cost

One way of tracking Landed Cost is by creating a Non-Inventory or Other Charge Item. User will use this on a standalone Bill with a Reference Number. Then, on the Item Receipt of the product that user want to apply the Landed Cost, user can  select the Landed Cost Category, select Other Transaction then enter the Reference Number on the Transaction field.

GL Impact is:

Debit               Raw Materials (Item)

Debit               Raw Materials (Item)

Credit              Expense Account (Landed Cost Category)

Credit              Inventory Received not Billed

Please note that the Expense Account used on this transaction is the Expense Account on the Landed Cost Category selected. Therefore, if user want to update the Expense Account on this transaction, then user would need to change this by navigating to Setup>Accounting>Accounting Lists>Cost Category and select the Landed Cost Category.

Note that changing the Expense Account under the item record of the Non-Inventory or Other Charge item involved will not affect the GL impact of the landed cost association.