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Analytics · Manufacturers & Distributors

Product P&L with landed cost in COGS

A distributor built a product-level P&L that put true landed cost into COGS so margin by product was real.

Microsoft FabricPower BIDAX measuresSemantic model
COGS
Landed
freight and duty in
Margin
Per product
and channel
Hidden losses
Exposed
vs standard cost
Refresh
Daily
governed

Illustrative scenario · example figures

The challenge

Product margin used a standard cost that ignored freight and duty, so the products that looked most profitable were sometimes the ones quietly losing money.

What we built

We built a product P&L that folds landed cost into COGS and carries it through to margin by product, channel, and customer.

  • Landed cost folded into COGS at the product level.
  • Margin by product, channel, and customer.
  • Comparison of standard cost against true landed cost.

Outcomes

  • Product margin reflects real cost, freight and duty included.
  • Loss-making products hidden by standard cost are exposed.
  • Pricing and assortment decisions use true margin.

Where the data came from

SAP S/4HANAFreight and duty recordsSales ledgerCost master

Data is drawn from the systems the operation already runs on and delivered in the client’s own tenant.

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