The landing cost methods compute the splitting of costs between different products, or by quantity, weight, or volume. The correct methods have to be chosen to split the cost among the products and quantity.
Let's see an example with two products listed here:
Product | Purchase Price | Weight | Volume |
Material | 70 | 2 | 4 |
Finished Product | 60 | 4 | 2 |
Let's assume that we have the Purchase Order as shown here, then confirm the order is created, confirmed and the delivery order is confirmed; process the incoming shipment:
Let's check how the landed cost is split and will be computed using different methods.