Oracle Fusion White Paper

Oracle Fusion Landed Cost Flow

‘Procure to Pay Life Cycle’

June, 2021

Ahmed Mokhtar Kaoud

Oracle Applications Principle.
Financial & SCM Consultant

a.mak2013@hotmail.com
Oracle Fusion Landed Cost Life Cycle

Contents

1. About the Author .................................................................................................................... 2

2. Introduction ............................................................................................................................. 2
3. Purpose .................................................................................................................................... 2
4. Who Should Read This ........................................................................................................... 2
5. Oracle Fusion Landed Cost Flow – ‘Procure to Pay life Cycle’ ............................................ 3

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Oracle Fusion Landed Cost Life Cycle

1. About the Author

Ahmed Mokhtar Kaoud, Senior Oracle Principal Consultant (Fusion & EBS) from Egypt.

He graduated from Faculty of Commerce "Accounting Section" – Azhar University in 2006.

He has a large wide experience in fields of:
Support/Implement/Training for Oracle Financials and PPM & SCM Track.
Also, he is Oracle Certified Professional – OCP & PMP.

Overseas Experience: United Kingdom, South Africa, UAE, KSA.

2. Introduction
Oracle Fusion Landed Cost Flow with Procure to Pay (P2P) Life Cycle for Functional
and Technical flow.
the Procure to pay cycle is vital to an organization as in this process the organization buys
and received goods or services from its vendors and makes necessary payments.

3. Purpose
This paper will help you to understand the steps to create Purchase Order with Budget
Reservation and Encumbrance & how to process the purchase order Creation in
addition to Make PO Approval cycle and the process of landed cost integrated with PO
and the Shipment to create ASN & Receiving, then going to AP module to see AP
invoice Created Automatically by using (ERS) & Eventually making Payment as well
in Oracle Fusion.
This Document is not for teaching the Setup & Transactions Steps, it’s for mentioning
the overall Results.

What are landed costs?

Landed costs are the sum of the material costs and the additional landed cost charges

Associated With the purchasing and receipt of material.

4. Who Should Read This?

This paper is aimed to users, implementers and functional consultants of Oracle Fusion

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Oracle Fusion Landed Cost Life Cycle

* Landed Cost Life Cycle Diagram

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Oracle Fusion Landed Cost Life Cycle

5. Oracle Fusion Landed Cost Flow

‘Procure to pay life Cycle’

Create Purchase Order for Inventory Item

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Oracle Fusion Landed Cost Life Cycle

Edit PO Document & Check Funds

PO Line Details

Submit PO

Get Approval Notification

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Oracle Fusion Landed Cost Life Cycle

The Status is changed for PO

Login with Procurement Manager & Approve Po

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Oracle Fusion Landed Cost Life Cycle

The PO Status is changed to Open & Funds Status is Reserved

View Approval

View Budgetary Control (Encumbrance Obligation)

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Oracle Fusion Landed Cost Life Cycle

Running Landed Cost Process in Background

Create Trade Operation Based on PO Number

Edit Trade Operation and Add Landed Cost Estimated Charges

Now all the Landed Cost Charges are (2900 SAR)

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Oracle Fusion Landed Cost Life Cycle

Create ASN based on PO Number

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Oracle Fusion Landed Cost Life Cycle

PO Status

Receive Shipment & Create Receipt

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Oracle Fusion Landed Cost Life Cycle

View On Hand Quantity

PO Status

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Oracle Fusion Landed Cost Life Cycle

View Receipt Accounting - Receipt into Receiving Inspection

View Receipt Accounting - Deliver To Inventory Destination

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Oracle Fusion Landed Cost Life Cycle

Now we have about (9) Landed Cost Estimated Charges Created for Receipt
So, we are going to see (1) Landed Cost Charge as an example

View Receipt Accounting - Landed Cost Adjustment for Receipt

View Cost Accounting - Landed Cost Adjustment for Receipt

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Oracle Fusion Landed Cost Life Cycle

View Journal Entries

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Oracle Fusion Landed Cost Life Cycle

View Budgetary Control (Encumbrance Obligation)

View Budgetary Control (Actual)

AP invoice Created Automatically by ERS

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Oracle Fusion Landed Cost Life Cycle

Edit AP Invoice & Validate

Landed Cost Invoice Created

PO Status

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Oracle Fusion Landed Cost Life Cycle

Create Payment

View Payment

Now we can see Charge Decomposition & Variance for Landed Cost Estimated Charges

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Oracle Fusion Landed Cost Life Cycle

So we can see Charge Decomposition & Variance for Landed Cost Estimated & Actual Charges are
allocated

Review Cost Organization

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Oracle Fusion Landed Cost Life Cycle

View Landed Cost Details

Thanks
“‫علمتني‬ ‫ وانفعني بما‬،‫ما ينفعني‬ ‫"اللهم علمني‬

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