Landed Cost Tracking Process

Start of the Workflow/Process.

Fetch the initial shipment details and item quantities from the Purchase Order data model.

Get all related freight invoices, customs duties, and insurance documents linked to the shipment.

Create a new Landed Cost Entry record to begin tracking costs for the specific shipment ID.

Update the Landed Cost record with freight, fuel surcharges, and handling fees once invoiced.

Update the record with customs clearance fees, import duties, and taxes paid.

Update the record with secondary costs like warehousing, inspections, or documentation fees.

Aggregate all individual cost line items (freight, duty, fees) to calculate the total additional cost.

Execute formula: Original Product Cost + Total Ancillary Costs.

Calculate the difference between the original estimated unit cost and the new calculated landed unit cost.

Update the final calculated total and the updated unit cost back into the primary record.

Create a task for the Finance Controller to verify the accuracy of the landed cost against bank statements.

Send an email to the Procurement Manager notifying them that the final landed cost is available for review.

Create a report summarizing cost deviations across all shipments for the current month.

Create an entry in the Cost Variance Data Model if the deviation exceeds a predefined threshold.

End of the Workflow/Process.