In some companies that use SAP Business One, there are some cases that might occur, where when purchasing items and require additional landed costs, the items have been used first before additional costs were added.
Now, we will explain what will happen to SAP Business One’s behavior on landed cost value absorption if the quantity on landed cost is different from the available stock quantity.
- Receiving purchase quantity 10, landed cost quantity 10, in Stock quantity 10
If landed cost quantity equals quantity available, landed cost value willfully posted to the inventory account of the purchased item.
- Receiving quantity 10, landed cost quantity 10, in-stock quantity 7
If landed cost quantity more than the in-stock quantity landed cost value will partially be posted into ‘Price Difference Account’ for the item, and only for the quantity available whose value will be posted into the inventory account.
- Receiving quantity 10, landed cost quantity 10, in-stock quantity 0
When the available quantity does not exist, and a new landed cost document is created, the landed cost value will be fully posted into the “Price Difference Account”.