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Management (Pre-receiving)
Demo Script
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Ownership
The Demo Script Writer [Brian.Filice@oracle.com?Subject=365107698.doc] is responsible for
ensuring that this document is current.
Objective
The purpose of this script is to review the features available in EBS Landed Cost Management,
new in release 12.1.1. This script focuses on the Pre-receiving method where the estimated
landed costs need to be calculated prior to receipt.
What's New?
Pitfalls
You should be aware of the following issue:
8411594: multiple validations of the landed cost invoice inflate the value in the LCM
workbench. As a work-around follow the steps in the script.
Review repository ticket 288096 to get more information:
http://adsweb.oracleads.com/pls/ads/ads_ticket.details?pticket=288096
Assumptions
Related Documents
Begin Demo
Introduction
1. Overview and benefits
Overview:
Oracle Landed Cost Management enables you to manage estimated and actual landed cost for an
item purchased from a supplier. Landed Cost Management allows you to determine the "real"
costs associated with acquiring items including insurance, transportation, handling, storage costs,
container fees, and import or export charges.
Benefits:
Maximize profit: by illuminating "real" product costs, organizations have the opportunity
to identify areas for potential cost reduction.
Increase competitiveness: when all of the charges, fees, duties and taxes are known,
companies can more strategically source products/components from lower cost foreign
locations. Oracle LCM also enables companies to better justify contracts with vendors or
potential customers.
Increase visibility: itemizing and tracking all acquisition costs and material cost elements
as they apply to a product enables organizations to better link their product supply flows
with their financial processing and reporting.
Ensure compliance: Oracle Landed Cost Management gives you the option to determine
and calculate estimated landed costs before the receipt of the items into inventory (a
requirement in India, Brazil, and Romania) or after the receipt of the item into inventory.
Pre-receiving: determine and calculate estimated landed costs before the receipt of the
items into inventory. This is a requirement in many foreign countries like India, Brazil,
and Romania. This script focuses on the Pre-receiving method.
LCM as a service (Blackbox): determine and calculate estimated landed costs after the
receipt of the item into inventory.
Login to EBS
3. Login to EBS
Enter the information as pictured below; and make sure to enter a Need By date.
On the More tab make sure the Invoice Match Option is set to Receipt and then Save the
PO.
The status of the PO should now be Approved. Note that the Total price on the PO is
$8,250.00.
Create the LC shipment using the Landed Cost Management, Vision Operations
responsibility.
Click the Switch Responsibility button and select the Landed Cost Mgmt, Vision Ops
responsibility.
Navigate to the Landed Cost Mgmt Workbench: select Workbench > Shipments.
Select the Los Angeles Inventory Organization and then click Go.
On the Shipment Header enter the Shipment Type, Third Party, Third Party Site, and
then select the Lines tab.
Generate charges.
Select the row, set Actions to Generate Charges and then click Go.
Select Yes.
You will see that the shipment was created and charges executed.
6. Manage Charges
Update the landed cost amounts for freight and insurance like pictured below and then
click Apply.
You will see the following message stating that the updates have been saved.
Set the Action to View Landed Cost and then click Go.
Now that all the landed costs have been entered and represent the closest estimate, you will
need to submit the shipment.
Navigate to Receipts using Purchasing > Receiving > Receipts, and select the Los
Angeles Inventory Organization.
Set the Source Type to LCM, enter the PO, Shipment, and then click Find.
Enter the PO (and tab-out of the field to retrieve the PO information), Invoice Date,
Invoice Num, Invoice Amount like pictured (note that the PO amount was $ 8,250), set
the Match Action to Receipt, and then click Match.
Enter the receipt Num from before and then click Find.
Select the row, enter Match Amount, and then click Match.
To validate the invoice click the Actions button, check Validate, and then click OK.
12. Enter the invoice line for the landed cost charges (first for freight, secondly for insurance)
First, create the invoice line for the landed cost freight charge.
Set Matching Type to Freight, enter the Item Supplier Allied Manufacturing, the Receipt
Num, and the click Find.
Set the Cost Factor Name to LCM Freight Charges, enter the amount ($840 for just
freight), select the row, and then click Match.
Select OK.
Secondly, create the invoice line for the landed cost insurance charge.
Back on the Invoice Workbench and within the same row as LC freight was entered click
Match again.
Set the Cost Factor Name to LCM Insurance, enter the insurance amount, select the row
and then Match.
Select OK.
You will be returned back to the Invoice Workbench. Now you will need to validate the
invoice row for landed costs. However, keep in mind, that due to taxes you will need to do
this twice.
Back on the Invoice Workbench click the Actions button, check Validate, and then click
OK.
First run Matches Interface Import using the Landed Cost Management, Vision Operations
responsibility.
Click the Switch Responsibility button and select the Landed Cost Management, Vision
Operations responsibility.
Now run the submit shipment process to complete the actual cost calculation from the LCM
Workbench.
Retrieve your shipment, set the Actions to Submit, and then click Go.
You will see that the landed cost process completed successfully.
Select View Landed Cost in the Actions field and then click Go.
Demo Support
Please see http://adsweb.oracleads.com > (M) Support > Procedures, for current information
regarding demonstration support.
Introduction
Overview & benefits (1)
Login to EBS
Login to EBS: (3)
End