How to use Landed Cost budgeting

How to set up a landed cost budget vendor

To enable landed cost budgets for a supplier/vendor, you'll need to create a new vendor in Wiise first. 

1. Start from the navigation menu on the Role Centre, which is the front screen of Wiise, and select Purchasing > Vendors.  This will show your list of vendors. 
2. Select + New, then select a template for a new vendor. You can select the Blank Vendor Card. 
3. Now enter a name for this vendor so that you know this is specifically a landed cost budget vendor.  You may want to use the prefix LCB — so if your vendor name is "Fabrikam", the landed cost budget vendor name would be "LCB - Fabrikam".
4. Under the Invoicing section,  select a Gen. Bus. Posting Group and a Vendor Posting Group specifically for this landed cost vendor. You might need to create new posting groups just for this landed cost budgeting to see it clearly when posting. 
5. Next, scroll down to the Landed Cost section.
6. Enable the Used for Budget option to show that this vendor is specifically used for landed cost budgets. 
7.  Then in the Budget Related Actual Vendor field, link the original vendor to your new landed cost budget vendor. 
8. That's it! You’ve now set up you landed cost budget vendor, and this new vendor card is ready to use for landed cost budgets.

How to set up a landed cost budget item charge

To enable landed cost budgets for an item charge, you'll need to create a new landed cost item charge first. 

1. From the navigation menu on the Role Centre, select Landed Cost > Landed Cost Item Charges.  This will show the list of your landed cost item charges. 
2. Select + New to edit the list and add a new entry. 
3. Enter a No. and Description to help you see that this is specifically a landed cost budget item charge. You might find it helpful to use the prefix LCB.
4. Select a Gen. Prod Posting Group specifically for the landed cost budgets. 
5. Enable the Used for Budget field to show that this item charge is specifically used for landed cost budgets.  
6. Then select the Default Budget Currency and enter a Default Budget Amount. These fields are optional. They'll be automatically applied to budget lines on the Landed Cost receipt so you don't need to re-enter them every time. However, you can still change these amounts if you need to. 

How to set up a number series for landed cost budgets

To finish the landed cost budget setup, you'll need to select a specific number series for the budget vendors and a budget reversal code.

1. From the navigation menus on the Role Centre, select Landed Cost > Landed Cost Setup. 
2. You might need to select the Edit icon to make changes on this page. 
3. In the Budget Vendor CR/Adj Note Nos. field, enter the number series you want to use for the landed cost budget vendor credit memo CR/Adj Note Nos. 
   • Note: This is only used when a budget is closed.
4. In the Budget Reversal Reason Code field, choose the reason code used for the landed cost budget reversal credit memo, which is automatically created when posting a landed cost invoice.

Once you've created a landed cost receipt, you can record the landed cost budgets related to that landed cost receipt. 

Find out how to create a landed cost receipt.

How to record a landed cost budget

To record landed cost budgets, you'll need to open the Landed Cost Receipt first. 

1. From the navigation menu on the Role Centre, select Landed Cost > Landed Cost Receipts. This will show you your list of landed cost receipts. Open the landed cost receipt that you want to record a budget against. 
2. Now scroll to the bottom of the Landed Cost Receipt to view the Budget section. You can add as many budget lines relating to the landed cost receipt as you need. 
   • Select the Budget Vendor No. which shows the landed cost budget vendor number you set up earlier. 
   • Actual Vendor No. is the actual vendor number assigned to the budget vendor (auto-populated). 
   • Select the Budget Item Charge No. for this line.
   • Actual Item Charge No. is the actual item charge number assigned to the budget item charge (auto-populated).
   • Budget Amount specifies the default budget amount for the landed cost budget item charge. This field is auto-populated based on the set up of the landed cost budget item charge. However, it can be changed as needed.
   • Currency Code is the default budget currency for the landed cost budget item charge. This field is auto-populated based on the set up of the landed cost budget item charge. You can change it if and when you need to.
   • Budget Applied Amount specifies the amount allocated from the budget amount. It's applied against the purchase receipt when the goods are received. And it's a system calculated field.
   • Budget Remaining Amount specifies the budget remaining amount for the item charge line. It's a system calculated field.
   • Actual Amount is the actual amount invoiced from the vendor for the item charge line.  It's a system calculated field.
   • Unposted Documents shows the number of unposted invoices and credit memos assigned with this budget line. It's a system calculated field.
   • Closed shows whether the budget is closed or not. This field tells you if the landed cost receipt was posted. It's a system calculated field.
3. When you're ready to receive the items from your vendor, under the Lines section, enter the amount in the Qty. to Receive field. Then select Post Landed Cost Receipt from the menu at the top of the page. 

Note: Only the Budget Applied Amount will be posted to the General Ledger. The Budget Amount won't be posted to the General Ledger.

How to create a landed cost budget invoice

When you have received your items from your vendor, you would receive an invoice from your vendor for the actual cost of the delivery of the items. If you don't have this actual invoice yet then you can create a landed cost budget invoice against the received items to have them valued at more accurate cost in your inventory until the actual invoice come in. 

1. From the navigation menus on the Role Centre, which is the front screen of Wiise, select Landed Cost > Posted Landed Cost Receipts. This will display your list of posted landed cost receipts. Open the relevant landed cost receipt you wish to apply the invoice to. 
2. Scroll to the bottom of the posted landed cost receipt to view the Budget section.
3. Select Line > Create Purchase Invoice Lines. A confirmation message will display a purchase invoice was created for the selected item charge line. 
4. Select OK, the purchase invoice will open. You will notice this purchase invoice is prepopulated with the following: 
   • Vendor Name = Landed Cost Vendor name
   • Purchase Invoice Type = Landed Cost Budget
   • Purchase Invoice Lines are pre-populated based on the landed cost receipt

How to create a landed cost budget invoice manually

Alternatively, you could create a blank landed cost budget invoice from the Purchase Invoice page and populate it manually. 

1. From the navigation menus on the Role Centre, which is the front screen of Wiise, select Purchasing > Purchase Invoices. This will display your list of purchase invoices.
2. Select Invoice > Create landed cost budget invoice. This will create a blank landed cost budget invoice irrespective of the selected purchase invoice on the page. 
3. Select Vendor Name to choose the Landed Cost Vendor. Only vendors that are set up for landed cost budgeting will be displayed in the dropdown. 
4. Enter the Vendor Invoice No. 
5. Select the Posted Landed Cost Receipt drop down and choose the relevant posted landed cost receipt to create this landed cost budget invoice for. 
6. In the No. column, select the landed cost budget item charge. Only item charges related to the posted landed cost receipt selected in the previous step will be displayed to choose from. 
7. The Description/Comment and Vendor Shipment No. fields will prepopulate based on the item charge selection in the previous step. 
8. Enter the Quantity. 
9. The Budget Remaining Amount field will display the budget allocated to this item charge. 
10. Enter the amount you wish to allocate from the budget into the Direct Unit Cost Excl. GST field. 
11. Select More options > Line > Landed Cost > Calculate Landed Cost. A confirmation message will display an apportion assignment has been successfully completed.  
12. Finally to post the purchase invoice, select Posting > Post.

How to create the actual landed cost invoice

When your vendor sends you the landed cost invoice for your purchase order, you'll need to record this actual cost and reverse the posted budgeted amount. 

1. From the navigation menu on the Role Centre, select Purchasing > Purchase Invoices. This will display your list of purchase invoices.
2. Select Invoice > Create actual landed cost invoice. This will create a blank actual landed cost invoice, no matter if there's a selected purchase invoice on the page. 
3. Select Vendor Name to choose the Landed Cost Vendor. Only vendors set up for landed cost budgeting will be shown in the dropdown. 
4. Enter the Vendor Invoice No. 
5. Then select the Posted Landed Cost Receipt dropdown. Choose the relevant posted landed cost receipt to create the actual landed cost invoice for. 
6. In the No. column, select the landed cost budget item charge. You can only choose from item charges related to the posted landed cost receipt selected in the previous step.
7. The Description/Comment and Vendor Shipment No. fields will be filled in, based on the item charge selection in the previous step. 
8. Now enter the Quantity. 
9. The Budget Remaining Amount field will show the budget allocated to this item charge. 
10. Enter the actual amount for the item charge into the Direct Unit Cost Excl. GST field. 
    • Note: When you post this invoice, Wiise will reverse the budgeted amount by automatically posting a purchase cr/adj note, using the reason code and number series created in the landed cost budget setup. 
11. Select More options > Line > Landed Cost > Calculate Landed Cost. A confirmation message will display an apportion assignment has been successfully completed.
12. Finally, to post the purchase invoice, select Posting > Post.
13.  That's it!

Once this invoice is posted, Wiise will reverse the Landed Cost Budget invoice lines and post the actual invoice lines. 

The landed cost budget invoice can be partially reversed. You can do this in the Item Charge Assignment page by modifying the field Budget Amount to Reverse.

How to close the landed cost budget

This is needed to finalise the landed cost budget and to reverse any remaining posted budgeted entries. This is if the actual invoices are lower than the posted budgeted cost.

To close the landed cost budget for a landed cost receipt, you'll first need to open the posted landed cost receipt. You can't close the budget for an unposted landed cost receipt. 

Note: This action is irreversible. Once a budget line is closed, you won't be able to post anything towards that budget. 

1. From the navigation menus on the Role Centre, select Landed Cost > Posted Landed Cost Receipts. 
2. Select the posted landed cost receipt from the list. 
3. Then scroll to the Budget section found at the bottom. 
4. Select the item charge line, then select Line > Close Budget. 
5. Once a budget is closed for an item charge line, the value in the Budget Applied Amount field will become zero.