18-12-2025

Streamlining Landed Cost and Goods-in-Transit in Dynamics 365

Executive Summary

International shipments require more than container tracking, they need financial ownership from the moment goods leave the vendor. Dynamics 365 Finance & Operations, with its Goods-in-Transit (GIT) functionality, enables UAE businesses to recognize costs early, track in-transit inventory, and enhance landed cost management.

At d365.ae, we help organizations implement Goods-in-Transit process workflows that improve financial visibility, optimize supply chains, and ensure operational efficiency.

Challenges in International Shipments

Businesses often face:

• Delayed cost recognition affecting financial reporting
• Limited visibility of in-transit inventory impacting planning
• Customs and duties errors leading to overpayment or underpayment
• Manual operational inefficiencies

The Goods-in-Transit Process

The Goods-in-Transit process allows financial ownership and cost recognition before goods arrive.

Key Steps:

1. Voyage Creation: Define shipping journeys with expected delivery dates.
2. Invoice Posting: Early financial recognition for GIT-enabled voyages.
3. GIT Warehouse Receipt: Capture costs in GIT warehouse setup before arrival.
4. Under/Over-Delivery Handling: Manage discrepancies via under-delivery warehouses or negative purchase orders.
5. Final Cost Allocation: Calculate accurate landed costs including duties, freight, and additional charges.

Essential Setups

1. Landed Cost Warehouses
   • GIT Warehouse: Captures in-transit costs
   • Under-Delivery Warehouse: Holds discrepancies
2. Setup: Inventory Management ➜ Setup ➜ Warehouses → Create GIT & Under-Delivery warehouses → Assign default receipt location
3. Default Issue/Receipt Locations
    Ensure default receipt locations are configured if using inventory dimensions such as Location.
4. Voyage Templates
    Integrate delivery dates to feed master planning and financial reports.

Benefits for UAE Businesses

• Enhanced Landed Cost Management: Early cost recognition ensures accurate profitability calculations.
• Financial Transparency: Real-time ownership of goods improves reporting and compliance.
• Optimized Supply Chain Planning: In-transit quantities feed production and procurement plans.
• Operational Efficiency: Automation reduces manual errors and accelerates accounting cycles.
• Risk Mitigation: Proactively handle under/over-deliveries to minimize losses.

Case Example

A UAE trading company faced delayed cost recognition and inaccurate landed cost calculations. Implementing Dynamics 365 GIT process with dedicated warehouses led to:

• 30% faster financial reporting
• 20% reduction in stockouts
• Accurate landed costs minimizing customs and freight errors

Conclusion

For UAE businesses, Goods-in-Transit process in Dynamics 365 Finance & Operations enables:

• Early cost recognition
• In-transit inventory visibility
• Efficient discrepancy handling
• Accurate landed cost management

d365.ae helps organizations implement GIT processes end-to-end, improving financial control, supply chain efficiency, and operational performance.

Call to Action

To streamline international shipments and improve landed cost accuracy, contact d365.ae today for a demo of Dynamics 365 Finance & Operations GIT solutions.