Landed Cost Proces s February 25 2014 Oracle Landed Cost Management enables you to manage estimated and actual landed cost for an item purchased from a supplier. Using Oracle Landed Cost Management you can determine the "real" costs associated with acquiring items including insurance, transportation, handling, storage costs, container fees, and import or export charges. Standard LCM, Vision Operations
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February 25
2014 Oracle Landed Cost Management enables you to manage estimated and actual landed cost for an item purchased from a supplier. Using Oracle Landed Cost Management you can determine the "real" costs associated with acquiring items including insurance, transportation, handling, storage costs, container fees, and import or export charges.
Note: 1) Once this check box is enabled we cannot uncheck this.
LCM Variance account should be defined in “Other accounts” tab as shown below. This field will be enabled only if LCM is enabled.
2) Receiving Parameters In receiving parameters check this “Pre-Receiving in LCM” check box for LCM enabled organizations and accounts should be defined mandatorily if the check box enabled.Navigation: Inventory -----> Setup -----> Organization ----->Parameters
Note: 1) This is not a mandatory for LCM Enabled organization. If this is enabled we can make estimated charges for a shipment and can be added to item cost. If this is not enabled the charges will be added only after making Invoice for the receipt.
3) Landed Cost Management Options
We have to define LCM Options for LCM enabled Org. in Landed Cost Management Module.
4) Defining Shipment Line TypesSetting up shipment line types is a mandatory step before you can use Landed Cost Management. Shipment line type is a mandatory attribute of all shipment lines on a Landed Cost Management shipment. It provides a shipment line categorization and also drives the landed cost calculation behavior.
Navigation: Landed Cost Management -----> Setup -----> Shipment Line types. Click on Create.
A window will be opened and details should be filled as below
Select the Included in Landed Cost check box if want the landed cost engine to include the line amount for this shipment type in the landed cost for the item.
Select the Associable Line check box if the shipment line can be associated to another shipment line. For example, the amount of the first line will be prorated and allocated to the landed cost of the second shipment line.
5) Defining Shipment TypesBefore you can begin to use Landed Cost Management you must create shipment types. Shipment type determines the validations that will occur for a shipment.
Select the organization and click on “Go” and “Create” as shown below.
A window will be opened as shown below. Select the shipment type created and then enter the group reference manually for reference (not mandatory). Select the PO Supplier in Third Party column and its site in Site column.
After entering these details click on Save and then click on “Lines” as shown below.
Enter the PO Number in the field shown below and click on “Go”
Select the check box in the line and enter the qty for which receipt is going to be made. Then click on “Apply” and “Save”.
Now click on “Manage Charges” as shown in Figure
Then enter cost factors for the charges, Supplier and Estimated charge for that cost factor. Then select the Association type form the available options like Shipment, Line group, Shipment line.(Say Shipment). Click on Apply.
Now select the validate option as shown below and click on “Go”. Similarly repeat this step for Calculate, Submit.
3) Creating Receipt
Once this is done, now make the receipt in Inventory. We have to select source type as LCM and then select PO and shipment number as shown.
Here the qty column will be frozen and is equal to the qty entered in shipment in LCM module.
Make receipt and receiving transaction also as a regular process.
Now we can check the charges for the shipment in LCM. Open the shipment and click on view Landed cost.
4) Creation of Invoice for Charges with actual valueSelect the supplier for which the charges have been entered in LCM and enter the actual value as shown and click on Match
Select the Type as Miscellaneous if it is related to any other charges other than freight. Enter the PO Supplier and PO number click on find.
Validate and create accounting is also done for this invoice.
After this we have to run two requests in LCM. They are as follows