Moustafa Abdulrahman Oracle Fusion SCM Consultant [email protected]Why do we need landed cost? And how does it work? How to set it up? Demo. Why do we need LC? When you procure something and it arrives at your destination, during that from the supplier to the inventory, it could accumulate charges while it’s on the way..so these charges could be shipment or duties or carrier fees or broker fees etc etc.. So you want to have the right evaluation and you want to capture all the additional expenses..one other part is to help you with the profitability analysis and choosing the right supplier.. Once you have that info captured in the system, you can do a lot of analysis and make a lot of decision..sourcing or pricing or final costing or profitability analysis as I said earlier, in the cloud there is the so-called multi-dimensional cube So we have this cube in our cloud and we use across our several products specially the financial ones..to do our financial reporting or we use it in cash management or projects and it keeps the records of the multi-dimensional values on the freight, so you capture the data by dimension and it is coming from HYPERION and it’s called S-SPACE Cube..recently accquried by Oracle..we’ll see some parts of analysis available..
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Moustafa Abdulrahman Oracle Fusion SCM Consultant [email protected] So this additional 100 or 200 should go to inventory as an additional charge so when you the invoices
you are going to match them and that is how you are going to link them up with the trade operation and
you will see the following:
How do you deal with cases when you don’t have service POs?
When you create a trade operation,you’ll specify some estimates so for instance you’ll specify 10% of
item cost and insurance of 20% of the cost..and when I associate this particular trade operation you’ll
Moustafa Abdulrahman Oracle Fusion SCM Consultant [email protected] And routes is nothing but when you are entering the freight you want to capture through which route
you are bringing the material, so you can say you are bringing it from China or HK..
The only objective in LC is the “trade operation” you can create it via “Manage Trade Operations
Template”
Click and open the already defined one..
So this is how the template would look like
When you come down,this is where you are going to add the charges..so let us take a look at it..
Moustafa Abdulrahman Oracle Fusion SCM Consultant [email protected] Now the next step is that you have to do the association “Save and Close” before you leave, now the
Purchasing module has to expose it’s POs to LCM so you have to run a program..that actually picks the
POs from purchasing and exposes them to LCM so that you can associate that and without it you won’t
be able to take a look at things..
Navigate to tasks-”Manage Landed Costs Processes”, there are 4 programs in LCM
Make as demonstrated some sort of events and associate the events with the ESS jobs..in our case we
have to run “Prepare Material Purchase Order Data” so submit it by clicking “Schedule Process”,then all
available POs are going to land on LCM..hover over to “Overview” and then to the small tab of
“Processes”
Then click on “Review Purchase Orders for Landed Cost” by clicking on “tasks”
Enter your PO# then you’ll be able to find it..hover back to “Manage Trade Operations” and click on the
Moustafa Abdulrahman Oracle Fusion SCM Consultant [email protected] Then the amounts are allocated on the PO lines..if the column of the values is not visible hover to