Landed Cost Calculation Using Various split method Odoo

Landed cost calculation based on different Split Method,

Let’s take one example and check different split method and Stock valuation.

When Sales UoM and Purchase UoM same(When Purchase UoM Different keep in mind landed cost always calculate based on Purchase UoM and inventory valuation always display in Sales UoM).

Configuration :

============

To work with Landed Cost first need to activate landed cost feature, to do go to Inventory > Configuration > Settings.

Configure Warehouse   Odoo

Now we need to configure Product Category to define Costing method.

Wooden   Odoo 10

Products :

========

Wooden Table => Cost : 100, Weight : 5, Volume : 2, Category : Wooden

Wooden Chair => Cost : 200, Weight : 8, Volume : 8, Category : Wooden

Purchase Order :

==============

Wooden Table => with Qty : 1, cost : 100

Wooden Chair => with Qty : 2, cost : 200

PO00005   Odoo

Landed cost Type :

================

Transportation => Cost:  20

Duties => Cost:  15

1

===========================================

Result with Different Split methods in Landed cost :

===========================================

Equal :

Transportation = 20 / (no. of products 2) = 10

Duties = 15 / (no. of products 2) = 7.5

LC 2016 0014   Odoo

   Valuation :

    Wooden Table => 100 + Transportation(10) + Duties(7.5) = 117.5

    Wooden Chair => 200 * qty(2) + Transportation(10) + Duties(7.5) = 417.5

By Quantity :

Allocate cost based on qty, here we have wooden table with qty 1 and wooden chair with qty 2 so we have to allocate cost among 1:2 ratio.

Transportation = 20

                       So, For Wooden Table = (20 * 1)/3 = 6.67

                        For Wooden Chair = (20 * 2)/3 = 13.33

Duties = 15

              So, For Wooden Table = (15 * 1)/3 = 5

                  For Wooden Chair = (15 * 2)/3 = 10

LC 2016 0002   Odoo   

Valuation :

    Wooden Table => 100 + Transportation(6.67) + Duties(5) = 111.67

    Wooden Chair => 200 * Qty(2) + Transportation(13.33) + Duties(10) = 423.33

By Current Cost :

Allocate cost based on products cost 100:400 ratio (1:4).

      Wooden Table Cost: 100 *1 (qty)

      Wooden Chair cost : 200 *2 (qty)

Transportation = 20

                    So, For Wooden Table = (20 *1)/ 5 = 4

                    For Wooden Chair = (20 * 4)/5 = 16

Duties = 15

                    So, For Wooden Table = (15 *1)/ 5 = 3

                    For Wooden Chair = (15 * 4)/5 = 12

Landed Cost 3 (1)

   Valuation :

    Wooden Table => 100 + Transportation(4) + Duties(3) = 107

    Wooden Chair => 200 * Qty(2) + Transportation(16) + Duties(12) = 428

By Weight :

Wooden Table = 5 weight and Wooden Chair = 8 weight.

So the ratio 5:8 but here for chair we have 2 qty so ratio 5:(8*2) => 5: 16

   Transportation = 20 allocate based on weight of products.

                    So, For Wooden Table = (20 *5)/ 21 = 4.76

                    For Wooden Chair = (20 * 16)/21 = 15.24        

   Duties = 15

                    So, For Wooden Table = (15 *5)/21 = 3.57

                        For Wooden Chair = (15 *16)/21 = 11.43

Landed Cost 4

Valuation :

    Wooden Table => 100 + Transportation(4.76) + Duties(3.57) = 108.35

    Wooden Chair => 200 * Qty(2) + Transportation(15.24) + Duties(11.43) = 426.65

By Volume :

   Wooden Table = 2 Volume and Wooden Chair = 8 Volume.

                  So the ratio 2:8

Transportation = 20 allocate based on Volume of products.

                    So, For Wooden Table = (20 *2)/ 10 = 4

                    For Wooden Chair = (20 * 8)/ 10 = 16

Duties = 15

                    So, For Wooden Table = (15 *2)/10 = 3

                    For Wooden Chair = (15 *8)/10 = 12

Landed Cost 5

   Valuation :

    Wooden Table => 100 + Transportation(4) + Duties(3) = 107

    Wooden Chair => 200 * Qty(2) + Transportation(16) + Duties(12) = 428

To check valuation of products first validate Landed cost and go to Inventory > Reports > Inventory Valuation.

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