EBS Landed Cost Management (As A Service or Blackbox) : Demo Script

EBS Landed Cost
Management (as a Service or

Blackbox)
Demo Script
Copyright © Oracle Corporation, 2003. All rights reserved.
EBS Landed Cost Management (as a Service or Blackbox)

487526235.doc
Effective Paradigm_effective Page 1 of 26 Version 12.0r2 v1.0
Document Control
Date Owner App Version Change Reference

Release
06-Jun-2009 Brian.Filice 12.1.1 v1.0
Distribution
Ownership
The Demo Script Writer [Brian.Filice@oracle.com?Subject=487526235.doc] is responsible for
ensuring that this document is current.
Objective
The purpose of this script is to review the features available in EBS Landed Cost Management
new in release 12.1.1. This script focuses on the Landed Cost as a Service or Blackbox method
where the estimated landed costs are calculated after the receipt.
What's New?
Pitfalls
There are two (2) bugs that you should be aware of:
 767034 (base ticket 7746477): updated costs not reflected in the Landed Cost
Management workbench. Sometimes when the landed cost calculations (ALC calcs) are
ran, the updated costs might not display in the LCM workbench. A work-around is to
access the LCM workbench via Navigator using Landed Cost Management, Vision Ops >
Workbench > Shipments.
 8411594: multiple validations of the landed cost invoice inflate the value in the LCM
workbench. As a work-around follow the steps in the script.
Review repository ticket 288096 to get more information:
http://adsweb.oracleads.com/pls/ads/ads_ticket.details?pticket=288096

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Assumptions
Related Business Flows (Optional)
Related Documents
Begin Demo

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Introduction
Introduction
1. Overview and benefits
Overview:
Oracle Landed Cost Management enables you to manage estimated and actual landed cost for an
item purchased from a supplier. Landed Cost Management allows you to determine the "real"
costs associated with acquiring items including insurance, transportation, handling, storage costs,
container fees, and import or export charges.
Benefits:
 Maximize profit: by illuminating "real" product costs, organizations have the opportunity
to identify areas for potential cost reduction.
 Increase competitiveness: when all of the charges, fees, duties and taxes are known,
companies can more strategically source products/components from lower cost foreign
locations and enables companies to better justify contracts with vendors or potential
customers.
 Increase visibility: itemizing and tracking all acquisition costs and material cost elements
as they apply to a product enables organizations to better link their product supply flows
with their financial processing and reporting.
 Ensure compliance: Oracle Landed Cost Management gives you the option to determine
and calculate estimated landed costs before the receipt of the items into inventory (a
requirement in India, Brazil, and Romania) or after the receipt of the item into inventory.

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Landed Cost Mgmt Scenario
Landed Cost Mgmt Scenario

2. Review business flow, integrations, and flexible calculation methods
Business flow and integrations:
Flexible business process to calculate estimated landed costs:
 Pre-receiving: determine and calculate estimated landed costs before the receipt of the
items into inventory. This is a requirement in many foreign countries like India, Brazil,
and Romania.
 LCM as a service (Blackbox): determine and calculate estimated landed costs after the
receipt of the item into inventory. This script focuses on the Blackbox or Landed Cost
as a Service method.

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Login to EBS
Login to EBS
3. Login to EBS
 Username = dist; Password = welcome

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The Landed Cost Management, Blackbox Process
Review the LCM Blackbox

4. Create and approve a Purchase Order (PO)
 Create a PO using the Distribution Manager responsibility or the Purchasing, Vision

Operations (USA) html navigation.
 Enter the information as pictured below; make sure to enter a Need By date, and then
Save.
 Use the Approve button to approve the PO.
 Click OK to approve the PO.

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The status of the PO should now be Approved. Note the PO number and that the Total price
on the PO is $1,656.00.
5. Receive the items into the Inventory Organization
Receive into the W8 Inventory Organization.
 Click the Switch Responsibility button and select the Distribution Manager
responsibility.
 Navigate to Receipts using Purchasing > Receiving > Receipts, and select the Los
Angeles Inventory Organization.
 Enter your PO, and then click the Find button

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 Select the receipt row, enter a Subinventory location of STA, a Locator of L1.1.1 and
then Save the receipt. W8 is setup for WMS so you will need to manually enter the
locator.
 Note your receipt ID.
6. Run the estimated landed cost calculations
You will need to run the Landed Cost Integration Mgr request as the Distribution Mgr, and
then the Shipments Interface Import request as the Landed Cost Mgmt, Vision Ops
responsibility.
 Run the Landed Cost Integration Mgr process from View > Requests > Submit a New
Request.

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 Click the Switch Responsibility button and select the Landed Cost Mgmt, Vision Ops
responsibility.
 Run Shipments Interface Import request from View > Requests > Submit a New
Request.
7. View the estimated landed cost in the Landed Cost Management workbench
 Access the LCM workbench via Navigator using Landed Cost Management, Vision Ops
> Workbench > Shipments.
 Enter the pictured data to retrieve the shipment, set the Actions to View Landed Costs,
and then click Go.

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Review the estimated landed charges.
 Click the Unit Landed Cost link to view the details.
Review the Landed Cost Pie Graph.

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 Click the Close Window link when finished.
8. Enter the Item Invoice
 Switch to the Distribution Manager responsibility and navigate to Invoices using

Payables > Entry > Invoices.
 Enter the PO (and tab-out of the field to retrieve the PO information), Invoice Date,
Invoice Num, Invoice Amount like pictured (note that the PO amount was $ 1,656.00),
and then click Match.

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 Make sure the Matching Type is Item and then click Find.
 Select the Match row, enter the Match Amount, and then click Match.

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You will be returned back to the Invoice Workbench. Now you will need to validate the
invoice.
 To validate the invoice click the Actions button, check Validate, and then click OK.
The status of the item invoice will now display as Validated.

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9. Run the actual landed cost calculations
 Use the Landed Cost Management, Vision Operations responsibility and run Matches
Interface Import.
 Secondly, run Submit Pending Shipments.

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10. Review actual landed cost for the item in the Landed Cost Management workbench
 Enter the values pictured below, set the Actions to View Landed Cost, and then click
Go.
You will see the updated actual cost from the item invoice.

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11. Create the landed cost invoices
 Use the Distribution Manager responsibility and navigate to invoices.
 Enter United Postal Service for the Trading Partner, Supplier Site of UPS – HQ, Invoice
Date, Invoice Num, Invoice Amount, make sure the Match Action is set to Receipt, and
then click Match.

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 Set the Matching Type to Freight, enter the item supplier, receipt ID, and then click
Find.
 Set the Cost Factor Name to LCM Freight Charges, enter the Amount, select the row,
and then click Match.
You will see the following message:

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 Select OK.
You will be returned back to the Invoice Workbench.
Secondly, create the invoice line for the landed cost insurance charge.
 Back on the Invoice Workbench and within the same row LC freight was entered click
Match again.
 Set the Matching Type to Miscellaneous, enter the item supplier, enter the receipt, and
then click Find.

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 Enter the Cost Factor Name of LCM Insurance, Amount, select the row, and then click
Match.
You will see the following message:

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 Select OK.
You will be returned back to the Invoice Workbench. Now you will need to validate the
invoice row for landed costs. However, keep in mind, that due to taxes you will need to do
this twice.
 Back on the Invoice Workbench click the Actions button, check Validate, and then click
OK.
 Because of taxes you will need to re-validate the invoice – the Invoice Amount in the
header must match the Total (General tab) from the lines below. Manually enter the
value from the Total field in the lines into the Invoice Amount in the header and then
Validate again (Actions button, check Validate, OK).

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The landed charges invoice will now have a status of Validated.
12. Run the actual landed cost calculations
First run Matches Interface Import using the Landed Cost Management, Vision Operations
responsibility.
 Click the Switch Responsibility button and select the Landed Cost Management, Vision
Operations responsibility.

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 Run Matches Interface Import from Other > Requests.
 Secondly, run Submit Pending Shipments.
13. View the actual landed costs in the workbench
 Access the LCM workbench via Navigator using Landed Cost Management, Vision Ops
> Workbench > Shipments.
You will now see the actual landed costs (based on the invoice) compared to the estimated
amount as calculated by Advanced Pricing rules.

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 Click the Unit Landed Cost link.
 Click the Unit Landed Cost link.
Review the actual landed cost details.

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End of activity.
Demo Support
Please see http://adsweb.oracleads.com > (M) Support > Procedures, for current information
regarding demonstration support.

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Flowchart
Start
Introduction
Overview & benefits (1)
Landed Cost Mgmt

Scenario
Review business flow,
integrations, & flexible
calculation methods (2)
Login to EBS
Login to EBS (3)
Review LCM
Blackbox
Create & approve a
P.O. (PO) (4)
Receive items into
Inventory Organization
(5)
Run estimated landed
cost calculations (6)
View estimated landed
cost in Landed Cost
Management
workbench (7)
Enter Item Invoice (8)
Run actual landed cost
calculations (9)
Review actual landed
cost for item in Landed
Cost Management
workbench (10)
Create landed cost
invoices (11)
Run actual landed cost
calculations (12)
View actual landed
costs in workbench (13)
End

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Copyright © Oracle Corporation, 2003. All rights reserved.