Tariffs. Yesterday they weren’t something you had to think about. Today, suddenly they’re all you can think about. Tomorrow? Who knows.

Did you know Dynamics 365 for Finance and Operations can help you with that? It’s true! Dynamics 365’s Landed Cost functionality can keep track of tariffs, duties, and freight costs for you and show you exactly how they are affecting the cost of your imported product. Let’s dig into the out of the box functionality you should consider implementing immediately. With Dynamics 365 Landed Cost, you can run cost estimates to calculate the new cost of your imported goods before they ever ship. The functionality is compatible with all types of inventory costing methods – FIFO, LIFO, weighted average, moving average, standard cost, you name it. And it doesn’t stop there.

Chances are, if you’re importing product, even without tariffs, you’ve already encountered one consistent headache: How do I invoice orders a month before I receive them? Maybe you’re using proforma invoices, or you’re working on a customization to your ERP system, or even relying on a third-party solution to work around having to process receipts before invoicing. Dynamics 365 Landed Cost can help with that, too.

Through a simple process called the goods-in-transit order, Dynamics 365 allows you to post your purchase invoice without having already received the product. Upon invoice posting, the system creates a new goods-in-transit order, attached to the original purchase order, which tracks the incoming items as if they’re in a goods-in-transit warehouse. Then, when the items arrive at your site, they’re moved from the goods-in-transit warehouse to your actual warehouse via your regular receiving process.

Don’t worry. You won’t lose track of your incoming product while it’s in this goods-in-transit warehouse, because Dynamics 365 Landed Cost is still tracking the movement of your goods through loading and shipping, across the high seas, through customs, and on its way over land to your receiving facility. The Dynamics 365’s Tracking Control Center lets you keep track of your goods every step of the way, with each leg of the journey updating the next, so your estimated delivery time is always up to date.

Dynamics 365 Landed Cost will work for you whether you use customs brokers or book your shipping directly, and it will keep track of tariffs, freight charges, demurrage, bunker adjustment factors and more. Every cost is accounted for through the use of cost type codes, each of which can be attributed to the shipment, the vendor, or the specific item.

No matter how many different items you have on one shipment, you have plenty of options to break down the costs to the item level. Through Dynamics 365 Landed Cost’s apportionment process, you can assign the costs to the individual items by weight, volume, quantity, value, or by volumetric factors.

And did I mention that you can use Dynamics 365 Landed Cost even if you regularly ship product for several legal entities in the same shipment? Or if you’re paying for demurrage in Chinese yuan? Yeah, I thought you’d like that. Oh, and it even works with advanced warehousing processes.

Contact Caf2Code today to see how we can ease your international shipping burdens and help calm the stormy seas of the whole tariff process.