Processes Covered:

1. Estimated landed cost calculation

2. Material Receipt
3. Bills entry and processing for imported goods and the expenses incurred
4. Actual landed cost entry and issue price calculation
 Estimated landed cost calculation Process

Create a PO and approve it.

Make sure you have ship to organization set to 'Pahartali Shipping Depot' and invoice match option set
to 'Receipt'.
Create another PO and approve it. Make sure you have ship to organization and invoice match option
set to 'Receipt'

Check the shipments

Log into system with the shipping depot user.

Go to 'Landed Cost Management' responsibility and navigate to Workbench → Shipmets page

Select the LCM pre-receiving enabled inventory organization from the inventory organization LOV and
click on 'GO' button.
Click on the 'Create' button to create the LCM shipments. It will take you to following screen, enter the
values for OU, Receiving Location, Shipping date, Shipment Type and Shipment Number in the LCM
shipment head section. In the line group section fill up the group, group reference, source type, third
party and third party site.

Save your work and then go for entering the shipment line details clicking on the 'Lines' tab.

Find the expected shipment lines entering relevant details like Third Party Site, Purchase Oder etc.,
select the lines and save your work.

Again search with PO number: 40 and select the lines and save to save your work. Now this LCM
shipment no: BR/SHIP/20/07/12 is created with six lines, three each from PO No: 39 & 40. You may
change the qty, price, currency if required and save the work pressing the 'Save' button.
Once you have entered all the information related to the LCM shipment press the 'Apply' button to save
apply your work. It will take you to the main LCM shipment entry page where you can find your
shipment LCM.

Now click on the shipment Number and click on the 'Update' icon or the button. Go to lines tab and
select 'Manage Charges' from the actions LOV and click on 'GO' button.

It will take you to the below window where user can enter different LCM related charges like customs
duty, agent commission, port charges etc., click on the 'Apply' button when completed to save your
work.
You get a confirmation message.

Now we have to validate the LCM shipment, select the 'Validate' action from actions LOV and click on
the 'GO' button. Once the validation completes successfully, following confirmation message is
displayed. It also changes the LCM shipment status to VALIDATED.

Next to calculate the landed cost of the item in the LCM shipment, select the 'Calculate' action from
actions LOV and click on the 'GO' button.
Once the calculate process completes successfully, you get a confirmation message on the same. Now
you can view the estimated landed cost selecting the 'View Landed Cost' action from actions LOV and
click on the 'GO' button.

This will take to the next page showing cost hierarchy of the items in the LCM shipment.

Click on the any 'Unit Landed Cost' link, will show the breakup in graphical form.
Once the estimated landed cost is finalized, this can be submitted for receiving. Select 'Submit' action
from actions LOV and click on the 'GO' button. You get a confirmation of its successful completion and
it also changes the Shipment Status = 'Completed'.
 Imported Material Receipt

Next the LCM shipment will be received in receiving. Log into the system, go to 'Store Keeper'
responsibility and navigate to Receiving → Receipts. Select source type = LCM and enter to LCM
shipment no to find details.

Select the lines to be received and save to generate receipt number.

Click on header to get the receipt number created

Go for inspection of the items received. Log into the system, go to 'Store Keeper' responsibility and
navigate to Receiving → Receiving Transactions.

Select the receipt line and click on the 'Inspect' button to perform the inspection. Enter status and the
Quality code and click on 'OK' and press alt + F + S to save your work.

Log out of the system when receiving transaction is complete.

 Bills entry and processing for imported goods and the expenses incurred

Now invoices need to be entered in the system against the receipts created. Log into the system, go to
Payables Super User responsibility and navigate to Invoices → Entry → Invoice Batches. Enter the
supplier, site and other details. Click on the match button to match it with receipt we just created.

On Matching form, select Type = Item, enter the receipt (i.e. 6) and click Find:Save your work.
Select the lines to be matched to this PO under creation and click on the 'Match' button.

Now create another invoice for miscellaneous charges like (Customs Duty, Agent Commission etc), we
will select the same supplier, but invoice can be entered against any other supplier. After entering
invoice header details with new supplier like BR CUSTOMS AUTHORITY, click on match button to
add matched invoice lines, first, select Type = Miscellaneous, change Supplier to GE WHEELERS
LTD, supplier site to GE WHEELERS - C and same receipt number = 6, then click Find.
On Match Other Charges to Receipts form, enter Cost Factor Name (BR CUSTOMS DUTY) and
related amount for freight (i.e. 1000 USD), select the line to be matched and click Match.

So, Miscellaneous lines will be added to the invoice under work.

Now create another invoice for the agents commission in the same way. After entering invoice header
details with new supplier like ABC CLEARING AGENT, click on match button to add matched
invoice lines, first, select Type = Miscellaneous, change Supplier to GE WHEELERS LTD, supplier
site to GE WHEELERS - C and same receipt number = 6, then click Find. On Match Other Charges to
Receipts form, enter Cost Factor Name (BR AGENT COMMISSION) and related amount for freight
(i.e. 200 USD), select the line to be matched and click Match. This will add miscellaneous lines to the
invoice under creation.

Next validate the invoices to transfer the actual cost related to customs duty and agents commission
having line type = miscellaneous to LCM module.
 Actual landed cost entry and issue price calculation process

Now we need to go to Landed Cost Management Module and import actual invoice prices into Landed
Cost Management application. First, we need to run Matches Interface Import request. Log into the
system, go to BR Landed Cost management responsibility and navigate to view → run → requests.

The request log file confirms that the 4 transactions found in INL_MATCHES_INT table have been
processed (and removed from this table):

+---------------------------------------------------------------------------+
Oracle Landed Cost Management: Version : 12.0.0

Copyright (c) 1979, 1999, Oracle Corporation. All rights reserved.

INLOIMP module: Matches Interface Import

+---------------------------------------------------------------------------+

Current system time is 20-JUL-2012 17:04:25

+---------------------------------------------------------------------------+

**Starts**20-JUL-2012 17:04:25
**Ends**20-JUL-2012 17:04:27
+---------------------------------------------------------------------------+
Start of log messages from FND_FILE
+---------------------------------------------------------------------------+
< **************************************>
< ***** Records Processed: 6
< ***** Records Inserted: 6
< **************************************>
+---------------------------------------------------------------------------+
End of log messages from FND_FILE
+---------------------------------------------------------------------------+
If we now check the LCM Shipment number BR/SHIP/20/07/12 in LCM Workbench, we will notice that
‘Pending Matching’ flag is now checked.

Next step is to run ‘Submit Pending Shipments’ request from view → Requests → Submit New
Requests with Inventory Organization and Shipment Number parameters.

The log file confirms that LCM shipment has been processed:
+---------------------------------------------------------------------------+
Oracle Landed Cost Management: Version : 12.0.0

Copyright (c) 1979, 1999, Oracle Corporation. All rights reserved.

INLSPSHIP module: Submit Pending Shipments

+---------------------------------------------------------------------------+

Current system time is 20-JUL-2012 17:11:57

+---------------------------------------------------------------------------+

**Starts**20-JUL-2012 17:11:57
**Ends**20-JUL-2012 17:11:58
+---------------------------------------------------------------------------+
Start of log messages from FND_FILE
+---------------------------------------------------------------------------+
< **************************************>
< ***** Records Processed: 1
< **************************************>
+---------------------------------------------------------------------------+
End of log messages from FND_FILE
+---------------------------------------------------------------------------+

Now, if you query the LCM Shipment number BR/SHIP/20/07/12 in LCM Workbench, we can see the
actual amounts:
Notes: