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Adding landed cost for internal transfers?

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We have internal locations that are all over the city where we collect plastic for recycling and later move it to the factory.

I would like to add landed cost i.e. transport cost to the internal transfer.

We have transporters who bill us based on the Kg's they've delivered from the collection points.

I would like to be able to add this bill and connect to my internal transfer and distribute the cost to the quantities delivered.

I am however not able to pick the internal transfer in the landed costs.

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Richard Shall (rsh)
Best Answer

Hello,

You are correct that you cannot add Landed Cost to internal transfers as these are intended to be used to transport material between locations inside warehouses.

If there is a chance that goods can be lost between locations, or if costs can be incurred, or there is a need to plan or schedule a move of goods between these locations, we do not recommend utilizing Odoo's locations functionality for these different pickup and drop off areas.

Considering that you need landed costs the moves don't constitute as internal transfers, especially since you are transporting material across the city between warehouse locations. Therefore we recommend setting these up as Warehouses and initializing Deliveries and Receipts between these warehouse locations.

How do the recycled goods get to these locations across the city? Do you manage the reception of recycled goods at these locations? Perhaps if you provide more detail so we can better understand your use case.

This workflow is supported with an EXTERNAL location as the Transit location (not using the default Odoo transit location) and AVERAGE cost only, not FIFO.

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Mr Green Trading Africa (Kenya) Ltd

Hi Richard, thank you for the response, the recycled goods are purchased from waste pickers in different parts of the city and then transported to the factory for processing using hired transport. We initiate and internal transfer and record the received quantity in odoo once it's weighted at the factory. We setup this collection points as locations in Odoo with Operation types to initiate the transfer to the factory for each. What other way can I record this expense for transport as a landed cost for the product?

Ray Carnes (ray)

As Richard stated in his answer "we recommend setting these up as Warehouses and initializing Deliveries and Receipts between these warehouse locations." so do not use Internal Transfers but a Receipt and a Delivery. You can add landed costs to the Receipt you use to move the Inventory into your factory.

Gamal-Ashraf

How to complete these settings,richard

Richard Shall (rsh)

@gamal - Under inventory management there is a landed cost setting you need to turn on which will enable a new menu item under "Inventory" -> "Operations" to allocate a previously incurred expense to the cost of a product.

Here is a video by a colleague that goes into detail: https://www.youtube.com/watch?v=j5QjcwVcWRo

Alex Wells

Hello - I've been trying to do the same thing, in order to add customs duty to stock released from the bonded warehouse into the main warehouse. I tried through delivery/receipt transfers (I had a replenishment rule to go via the transit location), and the IN transfer does not appear in the 'transfers' drop-down list of the landed cost screen. So Ray, can you descrive how the IN transfer has to be setup so it appears in this list? Thanks

Ray Carnes (ray)

"This workflow is supported with an EXTERNAL location as the Transit location (not using the default Odoo transit location) and AVERAGE cost only, not FIFO." - please review your workflow to ensure you have these two options.

Eauzon

Have not found a working solution yet. We have a chain of subcontractors. Transports between subcontractors add landed costs to the products.

Whether they are configured as locations withing the main warehouse, or different warehouses.

@Ray, you mentioned setting up warehouses. But how do i match that with 'external' locations ? the WH2/Stock location, i cannot set as external location.

Eauzon

Basically in EE15 there is

Vendor Location
View
Internal Location
Customer Location
Invertory Loss
Production
Transit Location

no External location ?

Richard Shall (rsh)

@jaco Waes, You do not want to set the warehouse locations as an external location but instead set the Transit location as the external. Landed costs only work from External -> Internal or Internal -> External.

Eauzon

@rsh yes that works ... WH -> Transfer -> WH2
But what if those warehouses are subcontracting locations ... how to create a Buy (Subcontracting) when a product goes low in one WH, and still have it go over a transit location. This works well without the intermediate Transfer location.

Also, my confusion was with the notion 'external location', but i figured out that choosing a 'vendor location' is an external location.

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Eauzon
Best Answer

Thanks to Kevin for posting a video explaining a workaround for this.

https://www.youtube.com/watch?v=biEvjW8cOU0

I hope this will be taken up in odoo 17, for i do not see any reason why internal transfers are excluded for adding landed costs.

Especially when you offer working with subcontracting.

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