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WhitePaper LCM Customize Charges and Taxes
WhitePaper LCM Customize Charges and Taxes
Management
An Oracle White Paper
Mar 2010
Table o Contents
Customize Taxes and Charges in Landed Cost Management..............................................1
Table of Contents.................................................................................................................2
Executive Overview.............................................................................................................
!ntroduction..........................................................................................................................
Methods in Oracle Landed Cost Management.....................................................................
"re#$eceiving %low.........................................................................................................
Landed Cost as a &ervice %low........................................................................................'
"rere(uisite to use custom taxes and charges in LCM........................................................'
$eleases and "atches ......................................................................................................'
!m)lement custom tax in estimated landed cost calculation................................................'
Technical Overview ........................................................................................................'
"rocess %low....................................................................................................................*
+efine Tax Code..............................................................................................................,
&am)le Code- !m)lement Customized Tax....................................................................,
!m)lement custom charges in estimated landed cost calculation.........................................
Technical Overview .........................................................................................................
"rocess %low..................................................................................................................1/
+efine Charges0Cost %actors.........................................................................................12
&am)le Code- !m)lement Customized Charges...........................................................1
$eferences..........................................................................................................................1'
2
!xecuti"e O"er"ie#
The Oracle Landed Cost Management Calculation )rocess )rovides the abilit1 to
calculate the estimated landed cost using charges manuall1 assigned or automaticall1
allocated based on the configuration in advance )ricing. Landed Cost Management also
uses taxes associated to the )urchase order that was originall1 calculated b1 E2#Tax
while calculating estimated landed cost.
This white )a)er focuses on the LCM features that enable 1ou to use customized charges
and taxes to calculate estimated landed cost.
$ntroduction
Oracle Landed Cost Management manages estimated and actual landed cost for an item
)urchased from a su))lier. Oracle Landed Cost Management determines the 3real3 costs
associated with ac(uiring items including non#recoverable taxes and charges. Changes
that are mainl1 considered in estimated landed cost calculation includes insurance4
trans)ortation4 handling4 storage costs4 container fees4 and im)ort or ex)ort charges.
Oracle Landed Cost Management integrates with "urchasing4 advance )ricing and other
modules. Landed Cost Management extracts the tax lines associated to the )urchase order
that was originall1 calculated b1 E2#Tax while calculating estimated landed cost of
shi)ment. &imilarl1 charges are extracted automaticall1 from advance )ricing while
calculating estimated landed cost of shi)ment.
Oracle 5))lications $12.1.1 onward allows custom logic to use taxes and charges during
estimated landed cost calculation in LCM. The setu)s for both tax and charge
customizations are discussed in this )a)er.
Methods in Oracle Landed Cost Management
Pre-Receiving Flow
Oracle Landed Cost Management )re#receiving functionalit1 is used to estimate landed
cost before the recei)t of the item b1 the $eceiving a))lication. 5fter the estimated
landed cost is finalized in Landed Cost Management that information is )assed to
$eceiving during the recei)t of the item based on the Landed Cost Management
shi)ment. The recei)t is )erformed using the 6nown estimated landed cost.
7sing Landed Cost Management the estimated landed cost is calculated for a shi)ment
from the following-
"rice and taxes for the item on the associated )urchase order.
Charges generated through the integration with Oracle 5dvanced "ricing or
manuall1 entered in Landed Cost Management.