Capture landed costs
Landed Cost Allocation focuses on freight, duty, fees, landed cost types, allocation methods, and item cost impact. In AWRA, procurement work is strongest when the need, supplier decision, approval, purchase order, receiving evidence, and payment context remain connected.
The practical goal is to buy with discipline. Users should know who requested the purchase, why it is needed, which supplier path is being used, and what evidence will make the decision defensible later.
In practice, freight and duty for an imported shipment are allocated to PO lines so inventory valuation reflects true acquisition cost.
Landed cost allocation flow
Capture cost
Freight, duty, clearing, or fees are recorded.
Choose type
Cost category is classified.
Allocate
Cost is assigned by value, quantity, weight, or policy.
Apply
Item cost is updated.
Review
Valuation and margin impact are checked.
Procurement model
- Procurement records should preserve source need and decision context.
- Approvals, RFQs, quotations, POs, and receipts each answer a different control question.
- Supplier and item data quality affect every downstream procurement report.
- Evidence makes buying decisions reviewable instead of personal.