landed cost and receipt routes

We have setup a receipt route against an item and set up the Processing Tab Option #6 = 2 (Blind Landed Costs)

We have created a Landed Cost Rule and we apply it to the purchase order line.

We then receive the item, and as far as we can tell, no landed costs are applied.

We then move the item through the receipt route and it appears as on hand (We are creating lots as we receive these items)

No Landed Costs are applied when the item goes on hand.

Yet the documentation on Receipt Routes says that this should work

From:E1: 43: Receipt Routing (P4312 / P43250 / P43090 / P43091 / P43252) (