Oracle Landed Cost Management Overview
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.
Knowledge and visibility into these trade costs
help organizations better evaluate new product plans, price their items, and
negotiate contracts with both suppliers and customers.
Setting Up Oracle Landed Cost Management
To Set Up Inventory Organization Options
Navigate to the Organization Parameters - Inventory Parameters window
Navigate to the
Organization Parameters - Other Accounts window
Setting Up Receiving Options
To use Oracle Landed
Cost Management you must setup several receiving options. Using the receiving
options you specify whether Oracle Landed Cost Management will be used as a
pre-receiving application and you also specify the accounts that will be used
pertaining to Oracle Landed Cost Management in the accrual accounting process. Use
the Receiving Options page in Oracle Purchasing to define this information.
To Set Up Receiving Options:
1. Navigate to the Receiving Options page, The Receiving Options page appears.
2. Select an Inventory organization from the list of values in
the Inventory
3. Click Go.
Setting Up Cost Factors
Oracle Landed Cost Management uses cost factors to define
charge types. Charge types are used in Oracle Landed Cost Management when
adding a new charge line in the Shipments Workbench. Use the Create Cost Factor
page in Oracle Purchasing to set up cost factors.
To Set Up Cost Factors:
1.
Navigate to the Cost Factors page,
Enter the code
for the cost factor in the Code field.
This code will
appear in the Charge Type list of values in the Shipments Workbench.
Select Active
for the Status.
Oracle Landed
Cost Management only uses cost factors with an active status for charge line
creation.
Enter a name
for the cost factor in the Cost Factor Name field.
Select the
basis for pricing using the Pricing Basis field.
Enter the
description for the cost factor in the Description field.
In the Cost
Management region, select the Allocation Basis for the cost factor.
Options are:
• Quantity
• Value
• Volume
Setting Up Advanced Pricing Profile Options
Maintaining
Shipment Line Types
Setting up shipment line types is a mandatory step before you can use
Oracle 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. Use
the Shipment Line Types pages to maintain the shipment line types.
Landed Cost Manager > Setup > Shipment Line Types
Maintaining Shipment Types
Before you can begin to use Oracle Landed Cost Management
you must create shipment types. Shipment type determines the validations that
will occur for a shipment. Use the Shipment Types pages to maintain shipment
types.
Use these procedures to maintain shipment types:
Landed Cost Manager > Setup > Shipment Types
In the Controls region of the page, select the Third Parties Allowed
option.
Here user can attached the Party types allowed to the shipment type
Here user can attached the Source types allowed to the
shipment type
After these setups users can use the LCM as a pre-receiving application.
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