Landed Cost ManagmentPRE-RECEIVING SCENARIO

R12.1.1

By Jian Wu

log on CHORTON/WELCOME1. Assign LCM Responsibility to the UserSystem Administrator Responsibility/Security/User/DefineQuery out User = CHORTONAdd new responsibility = Landed Cost Management

2. Enable LCM organizationPurchasing Responsibility /Setup/Organizations/OrganizationsQuery out Organization = LC2-Seattle Mfg (LC2)click /Inventory Oranization/Otherschoose Inventory Information- LCM enabled flag = checked- LCM Variance account = 01-530-5210-0000-000

3. Define LCM OptionLanded Cost Management Responsibility/Setup/Optionchoose LC2-Seattle Mfgclick GoNumbering: Shipment Number Generation = Automatic Shipemnt Nubmer Type = Numberic Next Shipment Number = 1Tolerance Control: PO Price Tolerance (%) = 50

4. Define LCM Shipment Line TypeLanded Cost Management Responsibility

/Setup/Shipment Line Typeclick CreateCode = JANE_SHIP_TYPEName = Jane Shipment Line TypeIncluded in the Land Cost is checkedAssociable Line is not checkedclick Apply

5. Define LCM Shipment TypeLanded Cost Management Responsibility

/Setup/Shipment TypeCode = J_SHIP_TYPEName = Jane Shipment Typethird Parties Allowed = BothShipment Line Type = JANE_SHIP_TYPEParty Types Allowed = OrganizationParty Usages Allowed = SupplierSource Types Allowed=Purchase Orderclick Apply

6. Setting Profile OptionsSystem Administrator Responsibility

Profile Setting.The following profiles should be set at site level:

INL: Default Shipment Type for Open Interface = Jane Shipment Type INL: Volume UOM ClassINL: Quantity UOM ClassINL: Weight UOM Class

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

relog on apps.

7. Enable Pre-Receiving Purchasing, Vision Operations (USA)/Setup/Organization/Receiving Optionunder LCM Accounts:- Pre-Receiving in LCM = Checked - Define all the accounts

8. Enable Cost FactorsPurchasing, Vision Operations (USA)/Setup/Purchasing/Cost FactorsMake sure ‘FREIGHT’, ‘DUTY’, ‘INSURANCE’ are active.

9. Define Price ModifierPurchasing, Vision Operations (USA)/Advanced Pricing/Modifiers/Modifier SetupMain Tab:

Type = Freight and Special charge List Number = 3000

Active checkedNumber = 3000Active checkedAutomatic checked

Globaal checkedName = 3000

Modifiers Summary Tab:Modifier No = 257857 (defaulted in)Level = LineModifier Type = Freight/Special ChargeStart Date = 05-MAY-2010End Date = 05-MAY-2011Print On Invoice checkedAutomatice checkedOverride checkedPrice Phase = PO: Line ChargesProduct Attribute = Item NumberProduct Attribute Value = AS54888

Discounts/Charges Tab:Charge Name = FREIGHTApplication Method = AmountValue = 10

Modifiers Summary Tab:Modifier No = 257858 (defaulted in)Level = OrderModifier Type = Freight/Special ChargeStart Date = 05-MAY-2010End Date = 05-MAY-2011Print On Invoice checkedAutomatice checkedOverride checkedPrice Phase = PO: Charges: Header/All Lines

Discounts/Charges Tab:Charge Name = INSURANCE or DUTYApplication Method = LumpsumValue = 200

Save it

10. Create Purchase OrderPurchasing, Vision Operations (USA)/Purchase Orders/Purchase Orders

Create PO with LCM enabled Organizationsupplier = “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

11. copy po# 5967 to another po# 5968Supplier = Allied ManufacturingSupplier site = LOS ANGELES

Others are the same.

12. 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 = 1Group Reference = J-SHIPSource Type = Purchase OrderThird Party = Allied Manufacturing

Third Party Site = LOS ANGELES

Group = 2Group Reference = J-SHIPSource Type = Purchase OrderThird Party = 3M Health Care

Third Party Site = CORP HQ

Click HeaderClick Line Group 1Click Lines

Find Expected Shipment LinesThird Party Site = LOS ANGELESPurchase Order = 5968Click Go

Select all the Lines.Click Save.

Click HeaderClick Line Group 2Click Lines

Find Expected Shipment LinesThird Party Site = COPR HQPurchase Order = 5967Click Go

Select all the Lines.Click Save.

Click HeaderChoose Actions = Generate ChargesClick GoGets:Confirmation

The Generate Charges action has been executed successfully.

Choose Actions = Manage ChargesClick Go

Choose Actions = ValidateClick GoGets:Confirmation

Landed Cost Validation has been executed successfully.

Choose Actions = CalculateClick GoGets:

Confirmation

Landed Cost Calculation has been executed successfully.

Choose Actions = View Landed CostClick Go

Click ‘Return to Shipment’ LinkChoose Actions = SubmitClick Go

The Shipment# 7 status = CompletedWeb Service is called to move data from LCM to RCV (RTI records). Receiving Transaction Processor (RTP) is called to process RTI records.

13. Receive LCM ShipmentPurchasing Responsibility/Receiving/ReceiptsChoose Organization LC2Source Type = LCMClick 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 windowFour shipment lines showing on the screen.Check all the four lines.Save .

receipt# 2 is created

14. Receive LCM ShipmentPurchasing Responsibility/Receiving/ReceiptsChoose Organization LC2Source Type = LCMClick LOV of ShipmentChoose shipment# 7.2Check all the four linesSave

Receipt# 3 is created

15. Create Deliver TransactionPurchasing, Vision Operations (USA) /Receiving/Receiving TransactionsQuery out receipt# 2For each lineClick Help/Dianostics/Examine

Block = RCV_TRANSACTIONField = UNIT_LANDED_COSTValue = 1.00495049504950495049504950495049504951

Click Help/Dianostics/ExamineBlock = RCV_TRANSACTIONField = LCM_SHIPMENT_LINEValue = 76

Unit Landed Cost of Corresponding shipment line and corresponding shipment line would be stamped on the Receving transactions records.

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