Landed Cost Management: Functional Overview

Upcoming functionalities included in R12.1.2 :

Day,December
Thursday, Date, 2004
17, 2009
7:00 AMtime
MST p.m. ET
Integration between LCM and OPM
How to find Landed Cost Management information on
Teleconference Access:
Teleconference Access: metalink ? Use the keywords EBS LCM
North America: xxxx
LCM shipments Interface, How to customize Charges,
+1-877-664-9143
International: xxxx How to customize Taxes, How to setup integration
International:
Password: Advisor between LCM and Adv. Pricing
+1-706-634-8961

Conference ID: 165475484

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 <Insert Picture Here>

Landed Cost Management

Overview, Functional Process Flow, Setups, Debugging and
Demonstration
Presenters Name Shekhar Ghosh
 Agenda

Overview <Insert Picture Here>

Functional Process Flow

Setups
Debugging
Demonstration
Q&A
 <Insert Picture Here>

Oracle LCM Overview

Introduction
Benefits
Integration with APPS modules
 What is Landed Cost?

Definition: Landed cost is the estimated and/or actual cost to

land products (goods or services) to an ultimate destination,
inclusive of many different related charges like freight, tax,
insurance etc.

Landed Cost data is a critical requirement for cross-border trace

environment
Global - multiple geographies
Multiple industries

Business Drivers
Dynamic compliance regulations
Strategic sourcing
Product profitability and margin analysis
Landed Cost Management - Operation Lifecycle

Enables Organizations
Maximize Profits
Increase Competitiveness
Improve Financial
Visibility into Supply Chain
Enhance Financial
Reporting Confidence and
Compliance
LCM Integration with APPS modules

EB Tax Tax Lines Payables

Tax Lines
Landed Cost Management

PO Information Charge Mgt. Invoices

Purchasing
Product Cost
LC Calculator Actual Landed Cost
Dashboard
Charges,
Advanced Freight,
Pricing Insurance Estimated
Landed Receipts
Cost

Estimated
Receiving Costing
Landed Cost
 Agenda

Overview <Insert Picture Here>

Functional Process Flow

Setups
Debugging
Demonstration
Q&A
 <Insert Picture Here>

Oracle LCM Functional

Process Flow
Usability Flows
Major Differences
Process flow
Pre-Receiving
Service (Post-Receiving)
Sample Output
Costing & Accounting
 LCM Usability Flows
Usability flows:
Pre-Receiving
LCM as a Service (Post-Receiving)

Major Differences:
Pre-Receiving
Manual Shipment Creation
Manual adjustment of cost factor, item quantity and price is allowed
i-Procurement receiving is not supported

LCM as a Service
Shipment generate automatically
Manual addition and adjustment of cost factor is not allowed
i-Procurement receiving is supported
Landed Cost Calculations (Pre-Receiving)
Landed Cost Calculations (Post-Receiving)
Pre-Receive Goods in LCM

Supplier / Receiving Clerk

Buyer Compliance Clerk
Carrier
User Actions

Manage
Shipments
Manage
Charges
Create PO Ship Goods Enter LCM Receive Goods in
Shipments Calculate
Receiving with
Submit reference to LCM
shipments
LCM RCV
Capture Estimated
charges from QP Interface LC
Information to
Automated Actions

receiving as LCM
Calculate Estimated shipments
Landed Cost

Receive Goods by
LCM shipment

Costing
Accrue Receipts

Update Item Cost

LCM as a Service for Cost Calculation

Supplier / Receiving Clerk

Buyer
Carrier
User Actions

Create PO Ship Goods Receive Goods

in receiving

RCV LCM

Integrated with Capture Estimated

LCM Charges from QP
Automated Actions

Integrate with Calculate Estimated

Costing Landed Cost

Costing
Accrue Receipts

Update Item Cost

Actual Landed Cost

Supplier Payables Clerk LCM Clerk

User Actions

Item
Invoice
Enter Invoices Review Actual
Calculation Process
Charge
Invoice

Payables LCM

Validate Invoices Invoice details

Automated Actions

Accrual Reversal / Calculate Actual

Accounting Landed Cost

Costing

Landed Cost
Adjustment
 Sample Output LCM Shipment
LCM -> Workbench -> Shipments
Sample Output
View Landed Cost Details

Displays the LC adjustments change history

Displays details of a specific adjustment
 LCM Costing & Accounting

Normal Receipt LCM Receipt

Account Debit Credit Account Debit Credit
Receiving Inspection A/C PO Receiving Inspection A/C Landed
Receipt @ PO Price Price @ Landed Cost Cost
Std/Avg Inventory AP Accrual A/C PO Inventory AP Accrual A/C Landed
@ PO Price Price @ Landed cost Cost
Organization material PO Organization material @ Landed
Delivery A/C @ PO Price Price Landed Cost Cost
Average Receiving Inspection A/C PO Receiving Inspection A/C Landed
@ PO Price Price @ Landed cost Cost
Subinventory A/C @ Std Subinventory A/C @ Std
Standard Cost Cost Standard Cost Cost
Delivery
Receiving Inspection A/C PO Receiving Inspection A/C Landed
Standard
@ PO Price Price @ Landed Cost Cost
Debit/Credit PPV A/C @ Debit/Credit PPV A/C @
(PO Price-Standard Cost) (Landed Cost - Std Cost)
 Agenda

Overview <Insert Picture Here>

Functional Process Flow

Setups
Debugging
Demonstration
Q&A
 <Insert Picture Here>

Oracle LCM Setups

Inventory Parameters
Receiving Parameters
LCM Setups
Parameters
Shipping Line Type
Shipping Type
Profiles
Purchasing Cost Factors
Advanced Pricing Modifier
 Define Inventory Parameters - LCM
Inventory -> Setup -> Organizations -> Parameters
LCM Enabled Flag
LCM Variance Account
 Define Receiving Parameters - LCM
Inventory -> Setup -> Receiving -> Receiving
Pre-Receiving in LCM Flag
LCM Accounts
 Define LCM Parameters
Landed Cost Management -> Setups -> Options
 Define Shipping Line Type - LCM
Landed Cost Management -> Setups -> Shipment Line Type
 Define Shipping Type - LCM
Landed Cost Management -> Setups -> Shipment Type
 Profiles Setup - LCM
Profile value at Site level:
INL: Default Currency Code for QP Charges Generation: USD
INL: Default Currency Conversion Type for QP Charges
Generation: Corporate
INL: Default Shipment Type for Open Interface: Domestic
Shipment

Profile value at Application level:

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
 Define Cost Factors - Purchasing
Purchasing -> Setups -> Purchasing -> Cost Factors
Define Costing Formula - Advance Pricing
Purchasing -> Advanced Pricing -> Modifiers -> Modifier Setups
 Agenda

Overview <Insert Picture Here>

Functional Process Flow

Setups
Debugging
Demonstration
Q&A
 <Insert Picture Here>

Oracle LCM Debugging

Concurrent Programs
Enable Debug parameters
View Log Messages
 Concurrent Programs - LCM
Landed cost Integration Manager Purchasing
- This program is used to synchronize the transactions details between
Receiving and Landed Cost Management

Shipments Interface Import LCM

- Program imports the shipping transaction from interface tables,
calculates the estimated landed cost and populates base tables in LCM.

Matches Interface Import LCM

- This concurrent program is responsible for importing the matched invoice
information from Oracle Payables into Landed Cost Management

Submit Pending Shipments LCM

- Program calculates actual landed cost and then performs the submitting
action again for the shipment in LCM.
 Enable Debugging - System Administrator
Sys Admin -> Oracle -> Applications Managers -> Logs -> Log Setup
 Debug Log Messages - System Administrator
Sys Admin -> Oracle -> Applications Managers -> Logs -> Search
 Agenda

Overview <Insert Picture Here>

Functional Process Flow

Setups
Debugging
Demonstration
Q&A
 <Insert Picture Here>

Oracle LCM Demonstration

Purchase Order -> Estimated Landed Cost
Receiving -> Invoice and Payment
Match Invoice ->Actual Landed Cost

Note:978471.1 - LCM R12.1.1 Functional

Process Flow - Landed Cost Management
Additional Information

Note:978471.1 - LCM R12.1.1 Functional Process Flow -

Landed Cost Management
Note: 836127.1 - Debugging R12.1 modules like Landed
Cost Management (LCM) Using Oracle Applications
Manager logs Feature
Note 795387.1 - Landed Cost Management Diagnostic
script
For More Information

The recorded version of this webcast will be available

within the next 24 hours and can be downloaded from
the Advisor Webcast Archive, Note 740297.1.
 Agenda

Overview <Insert Picture Here>

Functional Process Flow

Setups
Debugging
Demonstration
Q&A
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