P/O Landing Factors (PO09_POLF)

The P/O landing Factors (ibis_polf.po09) table defines the landing factors or add-on costs that can be applied at the supplier, product and receipt/in-transit level. The purpose of landing factors is to accurately reflect the true purchasing cost of the product. These add-on costs along with the actual purchase price compose the replacement cost and the true landed cost of the product. For more information, please see the Inventory Cost Terminology topic.

Each landing factor code can be configured to support the currency in which it will be applied, the method in which it will be calculated, the source of the value from which it will be calculated (cost base), and where the expense and variance of the value should be tracked in the general ledger module. A landing factor can also be flagged as a value that should be included in the product's dutiable value.

The P/O landing factors table manages the configuration of the landing factor code, but the default rates are assigned on the individual product purchasing record in the P/O Purchasing Information (ibis_popi.po13) table. The default landing factors are used to calculate the replacement cost of a product. When a product is received, the landing factors are used to calculate the landed cost unless the rates are overridden at the time of receipt in P/O Receipt and In Transit Entry (ibis_po60) or in P/O In Transit to Stock Receiving Entry (ibis_po63).

• Default landing factors for a supplier can be assigned in the Suppliers (ibis_pos.po11) table; they become the default landing factors for new supplier product records in P/O Purchasing Information (ibis_popi.po13).

• Note: If landing factors do not exist on the purchasing information record for the product, the landing calculation program does not go back to use the supplier's default landing factors from the suppliers (ibis_pos.po11) table.

The landing factors view includes a Where Used link on the details page of a landing factor record. The Where Used link opens the P/O Product Landing Factors Query (ibis_popif) view for the current landing factor. The query displays a list of products currently using the landing factor and the rate at which the landing factor is assigned.

The following list defines every field available in the P/O landing factors (polf) table in alphabetical order:

• Calculation Method - the Calculation Method for a landing factor determines how the associated landing factor rate is applied. Valid options include:
  • Value's % - landing Cost is calculated as a percent of the selected "base" value.

  • Cube's Rate - landing Cost is calculated as a dollar value per SKU volume (cubic foot/meter).

  • Weight's Rate - landing Cost is calculated as a dollar value per SKU weight (pound/kilo).

  • Unit's Amount - landing Cost is calculated as a dollar value per unit purchased.

• Company - the company field is available when you create a new landing factor record. The company defaults to the company assigned to your user id in the Session Parameters view. You can change the default company during the duty rate code creation process only. Once the record is created, the company to which the record is associated displays in the General section (at the top of the view).

• Cost Base - the cost base is only applicable for 'Value's %' calculation method and determines which value the percentage rate will be applied against. Valid options include:
  • Purchase Price - Domestic NET unit Purchase Price.

  • Value for Duty - this value is used to calculate duty amount. It is the Net Purchase Price plus landing Costs that are flagged as 'dutiable'.

  • Duty Paid Value - this is the sum of Value for duty plus the duty Amount.

• Created By - displays the name of the user who created the record you are viewing or maintaining. May not be overridden.

• Created On - displays the date on which the record that you are creating or maintaining was created. May not be overridden. May also represent the creation date of the records you are attempting to retrieve.

• Currency - the currency code associated with the landing factor. The currency code assigned to the landing factor is used to define the currency in which the rate will be expressed.
  • For domestic landing factors, the currency is set to your domestic currency code.

  • For foreign landing factors, the currency is set to a foreign currency code. For example, you want to capture the freight against a receipt from a foreign supplier. The freight value is expressed in the foreign currency, therefore the landing factor code is created with a foreign currency code in the currency field. Using the foreign freight landing factor at the point of receipt allows you to enter the freight expressed in the foreign currency without having to convert it first; the Currency Entry (ibis_cc22) program manages the conversion automatically.

• Description - the description of the landing factor code. The description can be a maximum of 30 alpha-numeric characters in length.

• Dutiable - this is a Yes/No field that determines if the value of the landing factor should be included in the amount on which duty is calculated.
  • A value of Yes indicates that the landing factor is dutiable. Note: The dutiable field is only available when the cost base field is set to purchase price.

  • A value of No indicates that the landing factor is not included in the duty calculation.

• GL Account - the GL account for the landing factor. The GL account for a landing factor is the 'Landing Cost Absorbed' COS (Cost of Sales) account that is credited upon receipt of stock via P/O Receiving Register Print (ibis_po64) if receipts accrual is selected in Company Control Initialization (ibis_cc00/Purchasing).

• Include in FOB Cost - this is a Yes/No field that indicates whether the landing cost will be included in the calculated FOB Cost. The FOB Cost is displayed as an 'information only' field in the P/O Purchasing Information (ibis_popi.po13) table for the supplier product record.
  • A value of Yes indicates that the landing factors are included in the calculated FOB cost.

  • A value of No indicates that the landing factors are not included in the FOB cost calculation.

  Note: All landing factors are considered when calculating the landed cost and replacement cost.

• Landing Factor - the landing factor code. The landing factor code can be a maximum of 10 alpha-numeric characters in length.

• Landing Factor Bulk Changes - this link opens the Landing Factors Bulk Change (ibis_po19) program.

• Modification Counter - this field is not maintainable. The date and time the record was last modified.

• Modified By - this field is not maintainable. The user or system process that last modified the record.

• Modified On - this field is not maintainable. The date on which the record was last modified.

• Variance Account - the variance account for the landing factor. The variance account for a landing factor is the COS account that is updated as a by-product of P/O Landing Factor Revision (ibis_po65).
  • When a landing cost is revised (for example, freight on the original receipt was estimated and actual freight is entered afterwards using ibis_po65) then if that stock is still in inventory, the average cost will be revised and GL postings will be generated for inventory and the variance account. If some or all of the receipt has already been sold, then inventory is only updated for the portion that is still in stock and the difference goes to the COS variance (Recost) account specified in Company Control Initialization (ibis_cc00/Purchasing).

For the functionality of each action (i.e. button) available on this view, refer to the About the Actions topic.