Dynamics 365 Supply Chain Landed Cost: Voyages, Charges and Allocation
dynamics 365 supply chain landed cost
Also searched as
- d365 landed cost voyage
- d365 landed cost charges codes
- landed cost allocation dynamics 365
Short answer
Landed cost in Dynamics 365 Supply Chain Management lets you add freight, duty, insurance and similar costs to the inventory cost of imported goods. You group purchase lines into a voyage, attach shipping containers, add costs from charges codes, and the system allocates those costs back to the received items so item cost reflects the true cost to land them.
Applies to: Dynamics 365 Supply Chain Management with the Landed cost feature enabled in Feature management. Page names can differ by version, check your release notes.
Set up and run landed cost
- 1Turn on the Landed cost feature in Feature management and complete the Landed cost parameters.
- 2Create the charges codes you will use for freight, duty, insurance and handling under Procurement and sourcing > Setup > Charges, with the correct ledger accounts and posting behavior.
- 3Set up the landed cost cost types and map each to a charges code, and assign the allocation basis (for example by value, weight, volume or quantity).
- 4Create the shipping containers and any supporting master data such as ports and carriers.
- 5Create a voyage and add the purchase order lines expected on it. Set the status as the shipment moves.
- 6Add the actual costs to the voyage as the freight and broker invoices arrive, and review the allocation to each line.
- 7Receive the goods against the purchase order and post the voyage costs, then verify the item's inventory cost.
The model: voyage, container, cost
A voyage is the unit of shipment: one sea or air movement carrying lines from one or more purchase orders, split across containers. Landed costs attach to the voyage rather than the purchase order, which matters when one container holds goods from several orders or one order ships in several voyages.
Costs are entered as voyage cost lines with a charges code. Allocation then spreads each cost across the lines using the allocation basis you configured. A cost allocated by weight and one allocated by value land very differently on a pallet of small heavy parts and a pallet of light expensive ones, so choose the basis per cost type deliberately.
Estimated versus actual costs
Most teams know freight and duty only approximately when goods arrive. Plan to book estimates at receipt and true them up when the invoices land. Whatever your flow, decide up front whether cost variances go to inventory (re-costing already sold stock is not possible) or to a variance account, and align that with your inventory model, which for standard cost and moving average behaves quite differently.
Check the inventory model group on each item before go-live. Some cost models cannot absorb late adjustments cleanly, and that is a finance design decision, not a technical one.
Verifying the result
After posting, open the item's on-hand and cost views and the inventory transactions for the receipt. The transaction should show purchase cost plus allocated landed cost. Trace one full voyage end to end in a test environment, with real freight and duty numbers, before using it on live shipments.
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Common pitfalls
- !Choosing one allocation basis for every cost type, which over- or under-costs light and heavy items.
- !Posting actual costs after goods have already been sold under a cost model that cannot restate cost.
- !Using ordinary purchase order charges for some shipments and voyages for others, so landed cost is split across two mechanisms.
- !Skipping a test voyage with real numbers before enabling the feature in production.
How an ERP-grounded AI assistant handles this
A grounded assistant can compare voyage cost lines against posted inventory transactions and flag items whose landed cost looks off against history, for a buyer or cost accountant to review. Questions like which suppliers carry the highest duty share of cost become a query, not a spreadsheet exercise. ERPray runs read-only over the ERP data and can sit inside your network.
Frequently asked questions
What is landed cost in D365 Supply Chain Management?
It is the process of adding freight, duty, insurance and handling to the cost of purchased inventory so item cost shows the true cost to bring goods into the warehouse. It is managed through voyages, containers and charges codes.
Do I need landed cost, or are purchase order charges enough?
For simple domestic purchases, charges on the purchase order are usually enough. Landed cost earns its complexity when goods ship in containers across several orders and costs arrive from several third parties.
Can I allocate landed cost to goods already sold?
Not meaningfully. The allocation adjusts inventory cost for what is on hand, and the effect on already issued stock depends on your inventory model. Settle this with finance before go-live.
Where do landed cost charges post in the ledger?
That depends on the charges code and posting profile configuration. Typically the cost goes to inventory with an offset to the vendor or accrual account. Verify with a test voyage and review the voucher.
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