Configure trade details and estimate landed cost

Use the landed-cost workbench to connect a supplier item's origin, destination, classification, procurement terms, and charge rules. It helps you identify missing inputs before comparing sourcing options in Order plan.

The workbench is an illustrative preview. Changing Estimate quantity does not create a purchase order, receive stock, or book an acquisition cost. Use the Order plan proposal for the sourcing calculation you review before creating draft POs.

Start with the right supplier item and destination

Before estimating, prepare an active supplier-item relationship with its purchasing units and prices, and identify the receiving stock pool. You also need the product's actual origin and classification, agreed purchasing terms, and the charge rules applicable to your trade lane. Use your established trade records for these inputs.

For example, Northwind Packaging sells Kraft mailer (MAILER-KR6) in cases of 24 each at USD 24 per case. To examine 3 cases delivered to Main Warehouse, the quantity is 72 each and the merchandise price is USD 72 before additional charges. Substitute your own supplier, quantities, units, and trade facts.

1. Open the supplier or material and select Check landed cost.
2. If the drawer says the material has multiple suppliers, select Open full workbench and continue with step 4. The drawer does not show the item, pool, and quantity fields in that situation. A material alone does not identify the applicable supplier terms or origin.
3. Otherwise, in Check landed-cost readiness, select the Supplier item and Receiving stock pool, then enter a positive Estimate quantity in the material's base units. In the example, enter 72, not 3.
4. Select Open full workbench to configure missing inputs. Confirm Supplier, Supplier item / material, and Receiving stock pool on that page, and recheck the estimate quantity. The drawer and full page are separate views; do not assume every selection was carried across.

The receiving stock pool matters even when the material and supplier stay the same. A different destination can change the relevant territory, freight configuration, and applicable classification or terms.

Configure the trade lane

Work through the numbered sections in the Landed cost workbench.

1. Under Product and trade lane, select Country of origin for the supplier item. This belongs to the supplier–material relationship; a supplier's address is not a substitute for the goods' origin.
2. Select Destination customs territory for the receiving stock pool. This changes the pool's configuration, so use the territory that actually applies to that destination.
3. Under Customs classification, select Add classification, or Replace classification when an effective record already exists. Confirm the material, classification system, commodity code, destination scope, and effective dates, then select Create or Create & supersede. A destination-specific classification and a global fallback have different scopes.
4. Under Procurement terms and responsibility, select Add terms or Replace terms. Review the applicable buyer, scope and dates, delivery and ownership terms, and responsibility for duties and taxes. The workbench's Create and activate terms action makes new terms active; Replace active terms replaces the active record. Review the values before using either action.
5. Under Taxes, duties, and tariffs, select Add charge to define an applicable rule. Review destination, commodity-code prefix, charge type, calculation method, rate and currency, origin scope, and effective dates. Complete the unit for a per-unit charge or the base for a compound charge. Review stacking and exclusivity along with any minimum or maximum charge, then select Create. For a replacement, the action is Create & supersede.

For a percentage rate, enter 25 for 25%; a per-unit rate is a monetary amount instead. Enter commodity-code prefixes as digits, without an asterisk. An effective end date excludes that date from the record's validity.

Charge rules are shared configuration. A rule can affect other materials whose code and origin fall within its scope. Use Replace on the matching rule when the effective configuration changes, and review its scope before saving. Exclusive is not a priority setting: conflicting rules in the same stacking group can leave the estimate unresolved.

The workbench reports when no effective classification, active terms, or matching rule applies. A saved future-dated record does not necessarily apply to today's preview. If the supplier is not linked to the Business Partner record required for terms, resolve that prerequisite through the purchasing terms guide.

For organization-wide configuration, open Home → Settings → Trade & costing. This provides the wider configuration lists, legal entities and registrations, selling-entity mapping, and stock-pool territories. Keep entity and registration details consistent with the parties involved in the transaction; an unresolved buying entity can prevent the estimate from resolving.

Configure sourcing freight

Open the supplier's Overview and find Sourcing by location. Find the receiving pool's row and review Eligible, Lead time (days), and Estimated freight. For a per-base-unit model, enter Estimated rate and Currency, then select that row's Save sourcing.

No freight is an explicit configuration. Missing freight configuration means the amount is unknown. Per shipment can be saved, but per-shipment freight is not yet included in landed ranking. Read the freight messages before relying on the preview; a displayed total is not evidence that every freight charge has been included. See supplier sourcing for the complete location setup.

Read the readiness result

The Landed-cost readiness badge describes the customs estimate:

Read Estimated merchandise (customs basis), Sourcing freight, and Buyer-borne customs separately. Potentially recoverable import tax is shown separately when available. Unknown customs is not zero, and amounts in different currencies should not be added together.

If ordering rules round your quantity, the result explains the base and supplier quantities used for the merchandise/customs estimate. Review that message against the supplier's pack size and price tier. For the mailer example, 72 each is 3 cases; an estimate using a different quantity needs review before you compare it with a USD 72 merchandise order.

For cross-currency charges, the readiness drawer exposes Advanced → Costing basis date. Enter the intended date for exchange-rate selection. A missing date or unavailable rate can leave the estimate unresolved; changing currencies just to remove the message would change the transaction you are examining.

Continue or recover safely

Return to Order plan after resolving the relevant inputs and review its current proposal, quantities, currencies, and sourcing costs. The workbench does not establish final freight actuals or finalized cost of goods sold; see cost layers and the ledger for the distinction between an estimate and recorded inventory evidence.

If the estimate could not be calculated, retry the read and report a persistent failure with the supplier item and receiving pool. If saving a classification, term, or rule times out, reopen the relevant section and check whether the record was saved before creating another. A failed load does not prove that configuration is absent.

Related guides

• Link products and configure supplier prices
• Configure units, packs and barcodes
• Manage date-effective prices and purchasing terms
• Review invoices, credits and payment status