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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