diff --git a/content/applications/inventory_and_mrp/inventory/management/reporting/integrating_landed_costs.rst b/content/applications/inventory_and_mrp/inventory/management/reporting/integrating_landed_costs.rst index 2b1cd8cf3..b76046b9a 100644 --- a/content/applications/inventory_and_mrp/inventory/management/reporting/integrating_landed_costs.rst +++ b/content/applications/inventory_and_mrp/inventory/management/reporting/integrating_landed_costs.rst @@ -1,64 +1,154 @@ -======================================================= -Integrating additional costs to products (landed costs) -======================================================= +============================================== +Landed costs: add additional costs to products +============================================== -The landed cost feature in Odoo allows to include additional costs -(shipment, insurance, customs duties, etc.) into the cost of the -product. +When companies perform profit analyses, the data being examined must be as accurate as possible. To +ensure that, **all** costs and expenses need to be accounted for, including the sum of expenses +associated with shipping a product, which is also known as *landed costs*. + +In Odoo, the landed costs feature allows the user to add and include additional costs on goods +purchased. This includes the cost of freight, shipping, insurance, taxes, and more. + +Enable landed costs +=================== + +To use landed costs, go to the :menuselection:`Inventory app --> Configuration --> Settings`, scroll +down to the :guilabel:`Valuation` header, and click the checkbox beside :guilabel:`Landed Costs` to +enable the feature. + +In this same section, a default accounting journal can also be set, in which entries involving +landed costs will be recorded. + +To configure a default accounting journal, click the blank field next to :guilabel:`Default Journal` +to reveal a drop-down menu, in which an existing journal can be selected. A new journal can be +created from this drop-down, as well, by typing the desired name of a new journal in the blank +field, and selecting either the :guilabel:`Create` or :guilabel:`Create and edit...` option. + +Clicking :guilabel:`Create` instantly creates the journal, which can be customized later. Clicking +:guilabel:`Create and edit...` reveals a pop-up window on the :guilabel:`Settings` page, wherein the +newly-created journal's details can be configured right away. When the configurations are complete, +click :guilabel:`Save` on the pop-up window to complete the journal creation process, and return to +the :guilabel:`Settings` page. + +After the setting has been enabled, and if a journal has been created or applied, click the +:guilabel:`Save` button to save all changes. + +.. image:: integrating_landed_costs/integrating-landed-costs-settings.png + :align: center + :alt: Enabled Landed Costs feature in Inventory settings. + +.. important:: + Landed costs can **only** be applied to products using a :abbr:`FIFO (First In First Out)` or + :abbr:`AVCO (Average Cost)` costing method, **and** automated inventory valuation. + +Create a landed cost product +============================ + +Landed costs can be manually entered each time a vendor bill is created. However, some products may +always have the same types of charges applied to them, and thus, the vendor bills may always list +the same landed costs. In this case, it's beneficial to create a specific landed cost product. + +To create a landed cost product, first navigate to :menuselection:`Inventory app --> Products --> +Products`, and click the :guilabel:`Create` button, which reveals a blank product template page. + +On the blank product template form, fill out the necessary product information, and change the +:guilabel:`Product Type` to :guilabel:`Service`. + +Then, click the :guilabel:`Purchase` tab, and under the :guilabel:`Landed Costs` section, select the +checkbox beside :guilabel:`Is a Landed Cost`. Once selected, a new field appears, in which a +:guilabel:`Default Split Method` can be selected. + +Clicking the blank field beside :guilabel:`Default Split Method` reveals a drop-down menu. From this +drop-down menu, select :guilabel:`Equal`, then click :guilabel:`Save`. .. note:: - Landed costs can only be applied to products with a FIFO or AVCO costing - method and an automated inventory valuation (which requires the - accounting application to be installed). + When the :guilabel:`Default Split Method` is set to :guilabel:`Equal`, the landed cost will be + split equally between all items included on the purchase order. If a :abbr:`PO (purchase order)` + has just one item, the full amount will be applied to this item. -Configuration -============= +.. image:: integrating_landed_costs/integrating-landed-costs-split-method.png + :align: center + :alt: Landed costs and split method enabled on product form. -First, you need to go in :menuselection:`Inventory --> Configuration --> Settings` and -activate the landed costs feature. You can also determine the default -journal in which the landed cost accounting entries will be recorded. +.. tip:: + Depending on the landed cost of each shipment, the price of a landed cost product can change with + each order. Therefore, a price (or cost) should **not** be set on landed cost products. -.. image:: integrating_landed_costs/integrating_landed_costs_01.png - :align: center +Create a request for quotation +============================== -Add costs to products -===================== +Before adding a specific landed cost on a product, a new :abbr:`RFQ (request for quotation)` for +that product must be created. To do that, navigate to the :menuselection:`Purchase` app, and click +:guilabel:`Create`. Doing so reveals a blank :abbr:`RFQ (request for quotation)` template form. -Receive the vendor bill ------------------------ +On the blank :abbr:`RFQ (request for quotation)` template form, add a :guilabel:`Vendor`, then add +the desired product to the product lines (under the :guilabel:`Product` tab), by clicking +:guilabel:`Add a line`, and selecting the desired product. -Let’s imagine I receive a bill from custom duties for a shipment. I’ll -tick the box *Landed Costs* on the vendor bill line. +Then, fill out the remaining information on the new :abbr:`RFQ (request for quotation)`. Lastly, +click :guilabel:`Confirm Order` to confirm the order. Once the quotation has been confirmed, it +turns into a :abbr:`PO (purchase order)`. -.. image:: integrating_landed_costs/integrating_landed_costs_02.png - :align: center +Next, click :guilabel:`Receive Products` to receive the ordered products, then click +:guilabel:`Validate`, which reveals a pop-up. In the pop-up, select :guilabel:`Apply` to set the +:guilabel:`Done` quantities. Then, navigate back to the initial :abbr:`PO (purchase order)` (via the +breadcrumbs). -.. note:: - The landed cost product must be of type service. +Create a vendor bill +==================== -If this product is always a landed cost, you can also define it on the -product and avoid having to tick the box on each vendor bill. +Once goods have been received from the purchase order, a vendor bill can be created directly from +the :abbr:`PO (purchase order)`. To do so, click :guilabel:`Create Bill`. Doing so reveals a vendor +bill draft page. -.. image:: integrating_landed_costs/integrating_landed_costs_03.png - :align: center +On this vendor bill draft page, the information from the :abbr:`PO (purchase order)` is +automatically populated. To add a landed cost to the bill, first click :guilabel:`Edit`. -At the top of my vendor bill, I’ll see a button *create landed costs*. -I click on this button and a landed cost is automatically created. I can -now decide on which picking those additional costs should apply. +Next, click :guilabel:`Add a line` in the :guilabel:`Invoice Lines` tab to add the newly-created +landed cost product to the vendor bill. And, since this product was specifically created as a landed +cost, the checkbox under the :guilabel:`Landed Costs` column is selected by default. -.. image:: integrating_landed_costs/integrating_landed_costs_04.png - :align: center +.. image:: integrating_landed_costs/integrating-landed-costs-vendor-bill.png + :align: center + :alt: Landed cost added on product lines on vendor bill. -I can now click on *Compute* and go in the tab *Valuation -Adjustments* to see the impact on my products costs. The last step is -to validate the landed cost. +.. important:: + Since no :guilabel:`Price` was set on the product template form for the landed cost product, it + **must** be set manually on the vendor bill, in the :guilabel:`Price` column. -I can access the journal entry that has been created by the landed cost -by clicking on the journal entry. +Create landed costs +=================== -.. image:: integrating_landed_costs/integrating_landed_costs_05.png - :align: center +Once all the necessary information on the bill has been filled out, click :guilabel:`Create Landed +Costs` at the top of the bill. -.. note:: - You are not forced to start from the vendor bill, you can also go in :menuselection:`Inventory - --> Operations --> Landed Costs` and directly create the landed cost from there. +Doing so reveals a separate page, wherein the necessary landed cost information is entered. From +this page, next to the greyed-out :guilabel:`Transfers` field, the warehouse receipt that this +landed cost is associated with must be specified. To adjust the :guilabel:`Transfers` field, click +:guilabel:`Edit` to make that field accessible. + +Additionally, an expenses :guilabel:`Account` (located in the :guilabel:`Additional Costs` tab) must +be selected, as well. + +To see how the landed costs affect the items on the :abbr:`PO (purchase order)`, click the +:guilabel:`Valuation Adjustments` tab. From this tab, the :guilabel:`Original Value` of the purchase +order and the :guilabel:`New Value` of the order can be seen and compared, as well as the +:guilabel:`Additional Landed Cost` that was added to change the original :abbr:`PO (purchase order +)`. + +.. image:: integrating_landed_costs/integrating-landed-costs-valuation-adjustments.png + :align: center + :alt: Valuation adjustments tab for landed costs on vendor bill. + +Once ready, click :guilabel:`Validate` at the top of the page, then click :guilabel:`Save` to save +all changes. Finally, click back to the vendor bill form (via the breadcrumbs). + +To complete the vendor bill, click :guilabel:`Confirm` to confirm the bill. Then, click the +:guilabel:`Register Payment` button at the top of the vendor bill form. Doing so reveals a pop-up. +From this pop-up, click :guilabel:`Create Payment`. Once clicked, this reveals a green *In Payment* +banner at the top of the vendor bill form. + +.. tip:: + Landed costs don't always need to be created from the vendor bill. 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