Landed Cost Management Demo

Create a Purchase Order for LCM Demo. Make sure that the match Option is set
to Receipt.

Approve and note the PO number

Switch Responsibility to Landed Cost Management and create a shipment.

Go Workbench – Shipments and choose 41_LCM_Demo_Org and click on
create button.

Make shipment type as 41_Ship_All and third party supplier and site as
21_supplier and Mannali site.

In the Lines region make the PO number as 149 and click on GO button.
Click on Generate Charges. It will throw an error – No Charges have been
generated. Access to this feature requires license for Oracle Advanced Pricing
for Oracle Procurement application.

Since it is not Licenced, we will manually manage charges. Actions – Manage

Charges – Go

Choose the Type as ORACLE_AP_FREIGHT.

Choose the third party supplier for fright as SRF Supplier and site as Manali
Main. Expected fright cost as 450 in Amount and apply. Associations to Type of
Shipment.
.

The charge lines will be saved successfully.

Go to Actions – Calculate. Landed Cost Calculation will be executed

successfully.

Actions – validate will validate LCM costs.

Observe the shipment status as Validated.

Go to Actions – View landed Cost and observe the estimated Freight as 450 and
the Unit landed Cost as 14.5000
Go to Actions – Submit and observe the shipment status for shipment 3.1 as
Completed.

Go to Purchasing – Receiving – Receipts. Query with Source type as LCM and

shipment number as 3.1

Choose the line and save.

Note the Goods Receipt Note number

Inspect the consignment

Deliver the GRN into rms sub inventory

Observe the concurrent India – Receiving Transaction processor is running.

Go to Payables and create an invoice for the above PO.for 1000 INR.

Match it to Receipt No. 1002 and obtain the distribution.

Validate the invoice.

Create another Invoice for SRF Supplier , Manali Main site for 500 INR. He is the
freight carrier for this delivery. The estimated freight charges are 450. The actual
is 500 now.

Click on match and match it for item type as Freight. The supplier is 21_supplier
and the receipt number is 1002 click on find.
Make the Cost Factor as AP Freight Cost and amount as 500. Click on match.

Validate the Invoice.

This completes the activity in AP for this LCM demo. Validated Invoices are
sufficient for LCM calculation.
Run the concurrent Matches Interface import from LCM responsibility.

Click on Action – Submit button. It will have a pending matching status set to
Yes.

A confirmation message states that landed cost Completion is executed

successfully.

Go to Actions – View Landed Cost

It will show the estimated Freight Cost as 450 and the Actual amount as 500. The
revised actual Unit Landed cost will now be 15.000