Landed costs management

Advanced and Flexible Solution for Landed Costs Management in Dynamics 365 F&O/AX

Available on appsource and microsoft preferred solution

Not so long ago, the landed costs were just one insignificant line among voluminous general expenses. Today, when businesses are expanding globally and international sales are rapidly growing, the importance of landed costs has increased even more. GO-ERP has noticed that standard Microsoft Dynamics 365/AX functionality became way too exhausting and time-consuming for many modern international businesses. So, GO-ERP created an advanced solution to allocate numerous invoices in a flexible way.

This solution is designed for distribution, retail, trade and other companies that are moving goods across international borders in large quantities. Proper control and automation of the landed costs management process helps these companies to maximize the profit margin, save a lot of time and avoid mistakes. 

Pain points of Dynamics 365 Standard users

Using the standard system’s functionality users have no accuracy, no tracking, and no correction options. Moreover, it’s a mostly manual and time-consuming process. Also, when it comes to transportation, the standard Dynamics 365  process concerns only the costs which are directly related to transportation. While the other costs such as insurance, customs, etc. must be entered manually across the invoice lines. Therefore, this standard solution might seem not flexible enough and sometimes limit business process needs.

dynamics 365 accounant

Solution and it’s benefits 

landed cost management solution benefits

GO-ERP’s landed cost management solution solves every pain point mentioned above and turns it into its benefits. The solution assures high accuracy, tracking option, easy editing, automated and fast process. It is enriched with new functionalities necessary for precise and easy landed cost management.  For example, flexible filters allow precise selection of the lines to be allocated. Additionally, you may choose the allocation method. Also, a simple and convenient reversal of landed costs is now allowed. Finally, the solution supports multi-currency operations.

The more invoices you have, the more you save

We have measured the “before” and “after” metrics for a typical charge allocation process. Apparently, the more invoices you have – the more you save. Moreover, you can accelerate the allocation of landed costs by 25 times, and reverse – more than 200 times! Basically, it only depends on the number of purchase invoices.

Allocation of 1 landed cost invoice
Time taken for... Dynamics 365 Standard GO-ERP Solution
100 purchase invoices ~ 3 hours ~ 10 mins
500 purchase invoices 17 hours ~ 40 mins
Reverse allocation of 1 landed cost invoice
Time taken for... Dynamics 365 Standard GO-ERP Solution
100 purchase invoices ~ 5 hours ~ 2 mins
500 purchase invoices 17 hours ~ 5 mins

Compare our solution capabilities with standard Dynamics 365 FO functionality

Following Microsoft Dynamics 365 terminology, the landed costs functionality in the comparison table is called miscellaneous charges.

Functionality GO-ERP Solution Standard Functionality
Allocation of miscellaneous charges:
--- to the amount of items, total amount, single vendor's invoice
--- in equal parts for each invoice line
Single charge across multiple invoices 1 Click as many steps as invoices
Automated creation of misc. charges entries
Purchase order, vendor invoice, vendor invoice journal, general journal
Invoice register -> Invoice approval journal
Vendor invoice pool excluding posting details -> Invoice journal
Manual creation of misc. charges entries
Modelling of allocation of misc. charges
Manual editing of allocated misc. charges before posting
Partial allocation of misc. charges, unallocated amount is visible
Automated reversal of misc. charges
Allocation of misc. charges on a sales invoice
Audit trail report with detailed transaction information
Risk of failing to allocate misc. charges in full very low average
Possibility of human error very low high
Speed of allocation of misc. charges across multiple invoices very fast very slow
Traceability of misc. charges posted easy complicated
Error correction after posting simple time consuming

A standard and optimized process comparison

Dynamics 365 F&O Standard Process

DRAWBACK: STANDARD ALLOCATION PROCESS IS VALID ONLY FOR INVOICES, WITH NO OPPORTUNITY TO ALLOCATE SEPARATE INVOICE LINES.

GO-ERP Optimized Process

BENEFIT: THERE IS NO NEED TO REPEAT THE PROCESS MULTIPLE TIMES. YOU CAN SELECT AND ALLOCATE AS MANY INVOICES LINES AS YOU HAVE. 

Scheduled updates 

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