4

Cost Management Cloud

Landed Cost Management

Sreeni Devireddy
Director, Product Management
Safe harbor statement

The following is intended to outline our general product direction. It is intended for information purposes
only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing decisions. The development, release,
timing, and pricing of any features or functionality described for Oracle’s products may change and remains
at the sole discretion of Oracle Corporation.
Statements in this presentation relating to Oracle’s future plans, expectations, beliefs, intentions and
prospects are “forward-looking statements” and are subject to material risks and uncertainties. A detailed
discussion of these factors and other risks that affect our business is contained in Oracle’s Securities and
Exchange Commission (SEC) filings, including our most recent reports on Form 10-K and Form 10-Q under
the heading “Risk Factors.” These filings are available on the SEC’s website or on Oracle’s website
at http://www.oracle.com/investor. All information in this presentation is current as of September 2019 and
Oracle undertakes no duty to update any statement in light of new information or future events.

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Agenda

• Why Landed Cost Management?

• How does it work?
• How to configure?
• End-to-End Demo Flow

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Why Landed Cost?

• Freight and transportation costs, from the supplier to the buyer's ultimate
location.

• Costs associated with the physical preparation of the goods in order for them
to be transported such as labeling, picking, packaging and packing goods,
including all inventory, distribution center, and warehouse costs.

• Ship loading, unloading, demurrage, and other assessorial costs.

• Haulage, drayage, storage, and detention fees.

• Equipment and container fees.

• Sales tax and value added tax (VAT).

• Import and export charges, import VAT fees, customs brokerage fees, and
excise taxes.

• Port or pier fees, wharfage, and harbor maintenance fees.

• Currency revaluations, with currency fluctuations and multiple currency

conversions.

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Process Flow & Demo
Estimated Costs Actual Costs

Laptop : $. 5200 (4000 + 400 + 800) Laptop : $. 5440 (4000 + 400 + 800 + 80 + 160)
Per Unit: $ 1300 Per Unit: $ 1360 • Estimates can include
MTRL : 1000 MTRL : 1000 non-recoverable taxes
FRET : 100 FRET : 100
INSR : 200 INSR : 200 • Accrual is knocked off
Material PO Schedules Trade Operation Charge Invoices FRET : 20 with Material invoice
INSR : 40
• If same code
Laptops - 4*1000 Freight – 10% UPS Printer : $1300 (1000 + 100 + 200) Printer : $1360 (1000 + 100 + 200 + 20 + 40) combination is used,
($4000) ($500 = 400 + 100) ($600) Per Unit: $ 650 Per Unit: $ 680 expense & landed cost
MTRL : 500 MTRL : 500 clearing offset each
FRET : 50 FRET : 50 other
Printers - 2*500 Insurance – 20% GE Capital INSR : 100 INSR : 100
($1000) ($1000 = 800 + 200) ($1200) FRET : 10
INSR : 20

Receipt Into Inspection PO Delivery into Inventory UPS Invoice GE Capital Invoice

Receiving Inspection 4000 DR Inventory 4000 DR Expense 600 DR Expense 1200 DR

Accrual 4000 CR Receiving Inspection 4000 CR Liability 600 CR Liability 1200 CR
Receiving Inspection 1000 DR Inventory 1000 DR
Accrual 1000 CR Receiving Inspection 1000 CR Landed Cost Adjustment for Receipt Landed Cost Adjustment for Receipt

Landed Cost Adjustment for Receipt Receiving Inspection 80 DR Receiving Inspection 160 DR
Landed Cost Clearing 80 CR Landed Cost Clearing 160 CR
Receiving Inspection 400 DR Inventory 400 DR Receiving Inspection 20 DR Receiving Inspection 40 DR
Landed Cost Clearing 400 CR Receiving Inspection 400 CR Landed Cost Clearing 20 CR Landed Cost Clearing 40 CR
Receiving Inspection 100 DR Inventory 100 DR
Landed Cost Clearing 100 CR Receiving Inspection 100 CR Acquisition Cost Adjustment Acquisition Cost Adjustment

Receiving Inspection 800 DR Inventory 800 DR Inventory 80 DR Inventory 160 DR

Landed Cost Clearing 800 CR Receiving Inspection 800 CR Receiving Inspection 80 CR Receiving Inspection 160 CR
Receiving Inspection 200 DR Inventory 200 DR Inventory 20 DR Inventory 40 DR
Landed Cost Clearing 200 CR Receiving Inspection 200 CR Receiving Inspection 20 CR Receiving Inspection 40 CR

# Inventory Item (Actual/Average Costing)

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 Receipt into Inspection Receipt into Inspection

With Service PO Service POs

Expense
Accrual
500
500
DR
CR
Expense
Accrual
1000
1000
DR
CR
UPS Landed Cost Adjustment for Receipt Landed Cost Adjustment for Receipt
($500)

Trade Operation Receiving Inspection 400 DR Receiving Inspection 800 DR

Material PO Schedules
GE Capital Landed Cost Clearing 400 CR Landed Cost Clearing 800 CR
($1000) Receiving Inspection 100 DR Receiving Inspection 200 DR
Laptops - 4*1000 Landed Cost Clearing 100 CR Landed Cost Clearing 200 CR
Freight
($4000)
Acquisition Cost Adjustment Acquisition Cost Adjustment
Printers - 2*500 Charge Invoices
Insurance Inventory 400 DR Inventory 800 DR
($1000)
UPS Receiving Inspection 400 CR Receiving Inspection 800 CR
($600) Inventory 100 DR Inventory 200 DR
Receiving Inspection 100 CR Receiving Inspection 200 CR

GE Capital UPS Invoice GE Capital Invoice

Receipt Into Inspection ($1200)
Accrual 500 DR Accrual 1000 DR
Receiving Inspection 4000 DR Invoice Price Variance 100 DR Invoice Price Variance 200 DR
Accrual 4000 CR Liability 600 CR Liability 1200 CR
Receiving Inspection 1000 DR
Accrual 1000 CR Landed Cost Adjustment for Receipt Landed Cost Adjustment for Receipt

PO Delivery into Inventory Receiving Inspection 80 DR Receiving Inspection 160 DR

Landed Cost Clearing 80 CR Landed Cost Clearing 160 CR
Inventory 4000 DR Receiving Inspection 20 DR Receiving Inspection 40 DR
Receiving Inspection 4000 CR Landed Cost Clearing 20 CR Landed Cost Clearing 40 CR
Inventory 1000 DR
Receiving Inspection 1000 CR Acquisition Cost Adjustment Acquisition Cost Adjustment

Inventory 80 DR Inventory 160 DR

Receiving Inspection 80 CR Receiving Inspection 160 CR
# Inventory Item (Actual/Average Costing) Inventory 20 DR Inventory 40 DR
Receiving Inspection 20 CR Receiving Inspection 40 CR
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Configuration - Demo

UPS-56749

Actual Costs

Laptop : $. 5440 (4000 + 400 + 800 + 80 + 160)

Trade Operation Charge Invoices Per Unit: $ 1360
MTRL : 1000 • Trade Operation Template
FRET : 100
Freight – 10% UPS INSR : 200
• Charge Names
($500 = 400 + 100) ($600) FRET : 20 • Reference Types
INSR : 40 • Cost Components Mapping
Insurance – 20% GE Capital Printer : $1360 (1000 + 100 + 200 + 20 + 40) • Mapping Sets FBDI
($1000 = 800 + 200) ($1200) Per Unit: $ 680
MTRL : 500
FRET : 50
INSR : 100
FRET : 10
INSR : 20
GEC-87523

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Charge & Allocation Basis

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Landed Cost Management Transaction Flow - Demo

• Create Purchase Order ($1500 = $1000 + $500)

• Prepare PO Data (Landed Cost Management process)
• Create Trade Operation
• Update status to Open; Associate PO; Allocate Charges
• Receive PO

• Transfer Transactions from Receiving to Costing

• Transfer Transactions from Inventory to Costing
• Allocate Charges ((Landed Cost Management process)
• Create Receipt Accounting Distributions
• Create Cost Accounting Distributions

• Create UPS Invoice ($150); Populate Reference, Account & Post

• Create GEC Invoice ($300); Populate Reference, Account & Post
• Transfer Costs to Cost Management

• Prepare Invoice Data (Landed Cost Management process)

• Associate TO Invoice (Landed Cost Management process)
• Allocate Charges (Landed Cost Management process)
• Create Receipt Accounting Distributions
• Create Cost Accounting Distributions
• Review Receipt Accounting Distributions
• Review Cost Accounting Distributions
• View Trade Operation

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Accounts Setup

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Analytics - Demo

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References

• Understanding Landed Cost in Fusion (Doc ID 2262559.1)

• How Does the Landed Cost Management Impacts the Accounting Flow In Procure to Pay Cycle? (Doc ID 2561900.1)

• End to End Step By Step Landed Cost Flow With Simple Test Case (Doc ID 2351071.1)

• SCM – Subledger Accounting Set Up and Troubleshooting in Oracle Managerial Accounting Cloud - Part 1 of 2

• SCM – Subledger Accounting Set Up and Troubleshooting in Oracle Managerial Accounting Cloud - Part 2 of 2

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Landed Cost Management: New Features (20A – 21A)

• Manage Trade Operations Using REST Services in Landed Cost Management

• Associate Payables Invoice Lines to Landed Cost Charges Using REST Services

• Create Trade Operations using spreadsheet

Complete list of new features are at Oracle Cloud Release Readiness

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