Landed Cost Managment

PRE-RECEIVING SCENARIO
R12.1.1
By Jian Wu

log on CHORTON/WELCOME
1. System Administrator Responsibility
/Security/User/Define
Query out User = CHORTON
Add new responsibility = Landed Cost Management

2. Purchasing Responsibility
/Setup/Organizations/Organizations
Query out Organization = LC2-Seattle Mfg (LC2)
click /Inventory Oranization/Others
choose Inventory Information
- LCM enabled flag = checked
- LCM Variance account = 01-530-5210-0000-000
3. Landed Cost Management Responsibility
/Setup/Option
choose LC2-Seattle Mfg
click Go
Numbering:
Shipment Number Generation = Automatic
Shipemnt Nubmer Type = Numberic
Next Shipment Number = 1
Tolerance Control:
PO Price Tolerance (%) = 50
4. Landed Cost Management Responsibility

/Setup/Shipment Line Type

click Create
Code = JANE_SHIP_TYPE
Name = Jane Shipment Line Type
Included in the Land Cost is checked
Associable Line is not checked
Click Apply
5. Landed Cost Management Responsibility

/Setup/Shipment Type
Code = J_SHIP_TYPE
Name = Jane Shipment Type
third Parties Allowed = Both
Shipment Line Type = JANE_SHIP_TYPE
Party Types Allowed = Organization
Party Usages Allowed = Supplier
Source Types Allowed=Purchase Order
click Apply
6. System Administrator Responsibility

Profile Setting.
The following profiles should be set at site level:
INL: Default Shipment Type for Open Interface = Jane Shipment Type

The following profiles should be set at application = Oracle Landed Cost Management:
QP: Blind Discount Option = Yes
QP: Licensed for Product = Purchasing
QP: Pricing Perspective Request Type = Purchase Order
QP: Pricing Transaction Entity = Procurement
QP: Source System Code = Oracle Purchasing

relog on apps.

7. Purchasing, Vision Operations (USA)

/Setup/Organization/Receiving Option
under LCM Accounts:
- Pre-Receiving in LCM = unchecked
- Define all the accounts
8. Purchasing, Vision Operations (USA)
/Purchase Orders/Purchase Orders

Create PO with LCM enabled Organization

supplier = 3M Health Care
supplier site = CORP HQ
Ship-To Org = LC2
line# 1:
Item = "AS54888 -> make sure Inventory Asset flag = Y in this org
quantity = 300
price = 1
shipment# 1:
quantity = 100
Need By/Start Date = sysdate
Receipt Routing = Standard Receipt
Match Approval Level = 2-Way
Invoice Match Option = Receipt -> it is mandatory for LCM actuals management
destination type = Inventory
shipment# 2:
quantity = 200
Need By/Start Date = sysdate + 1
Receipt Routing = Standard Receipt
Match Approval Level = 2-Way
Invoice Match Option = Receipt -> it is mandatory for LCM actuals management
destination type = Inventory

line# 2:
Item = " AS10000 -> make sure Inventory Asset flag = Y in this org
quantity = 300
price = 100
shipment# 1:
quantity = 100
Need By/Start Date = sysdate
Receipt Routing = Standard Receipt
Match Approval Level = 2-Way
Invoice Match Option = Receipt -> it is mandatory for LCM actuals management
destination type = Inventory
shipment# 2:
quantity = 200
Need By/Start Date = sysdate + 1
Receipt Routing = Standard Receipt
Match Approval Level = 2-Way
Invoice Match Option = Receipt -> it is mandatory for LCM actuals management
destination type = Inventory

po# 5967 is saved and approved

9. copy po# 5967 to another po# 5968
Supplier = Allied Manufacturing
Supplier site = LOS ANGELES

Others are the same.

10. Landed Cost Management Responsibility
Workbench/Shipments
Create a new shipment
Choose LC2-Seattle Mfg, click Create
Header:
Operating Unit = Vision Operations
Receiving Location = LC2 Seattle Mfg
Shipment Date = 03-Feb-2009
Shipment Type = J_SHIP_TYPE
Status = Incomplete

Line Groups:
Group = 1
Group Reference = J-SHIP
Source Type = Purchase Order
Third Party = Allied Manufacturing
Third Party Site = LOS ANGELES

Group = 2
Group Reference = J-SHIP
Source Type = Purchase Order
Third Party = 3M Health Care
Third Party Site = CORP HQ
Click Header
Click Line Group 1
Click Lines

Find Expected Shipment Lines

Third Party Site = LOS ANGELES
Purchase Order = 5968
Click Go
Select all the Lines.
Click Save.

Click Header
Click Line Group 2
Click Lines

Find Expected Shipment Lines

Third Party Site = COPR HQ
Purchase Order = 5967
Click Go
Select all the Lines.
Click Save.

Click Header
Choose Actions = Generate Charges
Click Go
Gets:
Confirmation
The Generate Charges action has been executed successfully.

Choose Actions = Manage Charges

Click Go
Choose Actions = Validate
Click Go
Gets:
Confirmation
Landed Cost Validation has been executed successfully.

Choose Actions = Calculate

Click Go
Gets:

Confirmation

Landed Cost Calculation has been executed successfully.

Choose Actions = View Landed Cost

Click Go
Click Return to Shipment Link
Choose Actions = Submit
Click Go

The Shipment# 7 status = Completed

Web Service is called to move data from LCM to RCV (RTI records). Receiving
Transaction Processor (RTP) is called to process RTI records.
11. Purchasing Responsibility
/Receiving/Receipts
Choose Organization LC2
Source Type = LCM
Click LOV of Shipment

Choose Shipment# = 7.1

Click on Find button

Receipt Header form window will appear.
Leave it as it is so that a new receipt is created.
Close the Receipt Header form window
Four shipment lines showing on the screen.
Check all the four lines.
Save .
Receipt # 2 is created
12. Purchasing Responsibility
/Receiving/Receipts
Choose Organization LC2
Source Type = LCM
Click LOV of Shipment
Choose shipment# 7.2
Check all the four lines
Save

Receipt# 3 is created
13. Purchasing, Vision Operations (USA)

/Receiving/Receiving Transactions
Query out receipt# 2
For each line
Click Help/Dianostics/Examine
Block = RCV_TRANSACTION
Field = UNIT_LANDED_COST
Value = 1.00495049504950495049504950495049504951

Click Help/Dianostics/Examine
Block = RCV_TRANSACTION
Field = LCM_SHIPMENT_LINE
Value = 76
Unit Landed Cost of Corresponding shipment line and corresponding shipment line
would be stamped on the Receving transactions records.

Materials:
1) LCM setup
https://kix.oraclecorp.com/KIX/display.php?labelId=3284&articleId=160366
2)
https://kix.oraclecorp.com/KIX/display.php?labelId=1923&articleId=76528