Updating an Item's Cost Price with Landed Costs (Perpetual Inventory Companies) 
To update an item’s cost price, which is required for calculating the inventory valuation, gross profit, or any other inventory-related calculation, you use a landed costs document. On this document, you record the costs incurred when importing goods and you distribute the costs among the individual goods according to predetermined factors, for example, quantity, weight or volume. You can use this procedure only if your company runs a perpetual inventory. If you do not run a perpetual inventory, see Updating an Item's Cost Price with Landed Costs (Non-Perpetual Inventory Companies).
You can base a landed costs document on goods receipt POs that are unpaid or partially paid and on another landed costs document. For example, you can update the landed costs amounts in the accounting system for incoming insurance or shipping invoices. Another example is documents that support landed cost estimations that are made in certain countries, such as Canada.
In addition, it is possible to link one goods receipt PO to several landed costs documents.
Prerequisites
You have created a goods receipt PO document for your overseas vendor.
Procedure
From the SAP Business One Main Menu, choose
Purchasing – A/P 
Landed Costs 
.In the Landed Costs window, select the vendor from whom you purchased the item(s).
If the vendor’s currency is different from your currency, specify an exchange rate and select the currency for the landed costs document.
Choose Copy From to base the landed costs document on a goods receipt PO or another landed costs document.
All item lines are copied into the document. If the landed costs document is based on a goods receipt PO, you can delete some of these lines if necessary.
NoteIf you want to base the landed costs document on several goods receipt POs, repeat this step as needed.
End of the note.On the Costs tab, specify the following data for the relevant landed costs type and recalculate the landed costs amounts for the goods:
Allocation By Allocation method as defined in the Landed Costs – Setup window for each landed cost.
Amount Amount of expenditures to be distributed on lines.
When the landed costs document is based on another landed costs document, this field represents the final invoice amount. That is, the amount difference between the base and the final amount is calculated and posted.
Include for Customs Specify whether the associated landed cost is allowed for customs calculation and should thus be included in the actual customs duty calculation and allocation.
ExampleIn some circumstances when a company calculates customs duty for transportation, the company does not have to pay customs on the full cost incurred for the transportation, for example, a company in the European Union (EU) that imports goods from Asia. The goods' initial point of transportation (point of first shipment) is from outside the EU, so the company has to pay customs duty on the non-EU portion, but is not subject to paying duty on the proportion of transport incurred inside the EU. In other words, some portion of the transportation cost is allowed to be included in the customs calculation, whilst another portion is exempted.
However, all the transportation cost, whether included for customs or not, is allocated to the inventory value.
End of the example.If any part of the cost is disallowed, we recommend splitting the costs into the allowed and the disallowed parts when you record the A/P service invoice, for example, for the freight invoice.
If you select the Include for Customs checkbox, actual and projected customs are calculated according to the formula given below. Note that the fixed customs rate is defined in the Customs Group field on the Purchasing Data tab of the item master data.
Actual/Projected customs = (FOB + included for customs landed costs) x fixed customs rate %
The system asks you whether you accept the newly calculated customs amount and distribute it according to the selection made. If you select Yes, both the projected and actual customs value are updated with the recalculated figure and the customs value per item is recalculated. If you select No, you have to update the actual customs amount and distribute the actual customs amount at line item level manually. Selecting No may be required if the actual customs value varies from the value calculated by SAP Business One. This may be the case when the customs or revenues authority assesses the associated goods customs value or duty rate differently.
Factor Percentage rate of each landed cost out of the total FOB costs of the shipment. This factor can help you determine the shipment efficiency in comparison to other shipments or certain standards.
New Landed Costs Opens the Landed Costs – Setup window. If required, use this window to define additional landed costs while you process the document.
In the footer area of the Items tab, specify the actual customs, if required.
If the actual customs differ from the projected customs, you can choose whether to distribute the difference proportionately among item lines or to use a different distribution method. To distribute the difference proportionately, choose Yes when answering the system message that appears. To use a different distribution method, choose No and divide the difference up manually.
NoteIf you do not want customs to affect the inventory value, deselect the Customs Affects Inventory checkbox.
End of the note.Choose the Add button.
SAP Business One adds the landed costs document and creates the related journal entry. If the landed costs document is based on another landed costs document, the posted value is only a delta.
The goods receipt PO is closed for further allocation of landed costs.
NoteIf you need to allocate additional landed costs to a goods receipt PO, open the goods receipt PO and from the menu bar choose
Data Advanced Open for Landed Costs .End of the note. NoteIf you want to use one landed costs document for importing goods from several vendors (for example, consolidation purchasing in which a single container is used for goods from several vendors to decrease import costs), repeat steps 2-4 before adding the document.
End of the note.