Advanced Pricing

Landed Cost Management Flow

PRE-RECEIVING SCENARIO
R12.1.1-R12.1.3
By Jian Wu

Log on CHORTON/WELCOME
1. Add LCM Responsibility To User
System Administrator Responsibility
/Security/User/Define
Query out User = CHORTON
Add new responsibility = Landed Cost Management

2. Enable LCM Organization

Purchasing Responsibility
/Setup/Organizations/Organizations
Query out Organization = Seattle Distribution Center (D2)
click /Inventory Organization/Others
choose Inventory Information
- LCM enabled flag = checked
- LCM Variance account = 01-560-4110-0000-000
3. Define LCM Option
Landed Cost Management Responsibility
/Setup/Option
choose Seattle Distribution Center
click Go
Numbering:
Shipment Number Generation = Automatic
Shipemnt Nubmer Type = Numberic
Next Shipment Number = 1
Tolerance Control:
PO Price Tolerance (%) = 50
4. Define Shipment Line Type
Landed Cost Management Responsibility
/Setup/Shipment Line Type
click Create
Code = TEST_SHIP_TYPE
Name = Test Shipment Line Type
Included in the Land Cost is checked
Associable Line is not checked
click Apply
5. Define Shipment Type
Landed Cost Management Responsibility
/Setup/Shipment Type
Code = TEST_SHIP_TYPE
Name = Test Shipment Type
Third Parties Allowed = Both
Shipment Line Type = TEST_SHIP_TYPE
Party Types Allowed = ORGANIZATION
Party Usages Allowed = SUPPLIER
Source Types Allowed=Purchase Order
click Apply
6. Define Profile Options for LCM and Advanced Pricing
System Administrator Responsibility
/Profile/System

Profile Setting.
The following profiles should be set at site level:
INL: Default Shipment Type for Open Interface = Test Shipment Type
INL: Volume UOM Class = Volume
INL: Quantity UOM Class = Quantity
INL: Weight UOM Class = Weight

The following profiles should be set at application = ‘Oracle Landed Cost Management’:
QP: Blind Discount Option = Yes
QP: Licensed for Product = Purchasing
QP: Pricing Perspective Request Type = Purchase Order
QP: Pricing Transaction Entity = Procurement
QP: Source System Code = Oracle Purchasing

Re-log on application.
7. Define Receiving Option
Purchasing, Vision Operations (USA)
/Setup/Organization/Receiving Option
under LCM Accounts:
- Pre-Receiving in LCM = checked
- Define all the accounts
8. Enable Cost Factors
Purchasing, Vision Operations (USA)
/Setup/Purchasing/Cost Factors
Make sure ‘FREIGHT’, ‘DUTY’ are active.
9. Define Advanced Pricing Modifiers
Purchasing, Vision Operations (USA)
/Advanced Pricing/Modifiers/Modifier Setup
Main Tab:
Type = Freight and Special charge List
Number = 3000
Active checked
Automatic checked
Name = 3000

Enter FREIGHT at the Po Line Level:

Modifiers Summary Tab:
Modifier No = 256880 (defaulted in)
Level = Line
Modifier Type = Freight/Special Charge
Start Date = 12-AUG-2010
End Date = 12-AUG-2011
Print On Invoice checked
Automatice checked
Override checked
Price Phase = PO: Line Charges
Product Attribute = Item Number
Product Attribute Value = AS54888
Discounts/Charges Tab:
Charge Name = FREIGHT
Application Method = Amount
Value = 25

Enter DUTY at the PO Header Level:

Modifiers Summary Tab:
Modifier No = 256881 (defaulted in)
Level = Order
Modifier Type = Freight/Special Charge
Start Date = 12-AUG-2010
End Date = 12-AUG-2010
Print On Invoice checked
Automatice checked
Override checked
Price Phase = PO: Charges: Header/All Lines
Discounts/Charges Tab:
Charge Name = DUTY
Application Method = Lumpsum
Value = 345

Save it
10. Create New Purchase Order
Purchasing, Vision Operations (USA)
/Purchase Orders/Purchase Orders

Create PO with LCM enabled Organization

supplier = Allied Manufacturing
supplier site = LOS ANGELES
Ship-To Org = D2
line# 1:
Item = AS54888 -> make sure Inventory Asset flag = Y in this org

quantity = 2
price = 1
Need By/Start Date = sysdate
Receipt Routing = “Standard Receipt”
Match Approval Level = “2-Way”
Invoice Match Option = “Receipt” -> it is mandatory for LCM
destination type = “Inventory”

po# 6120 is saved and approved

11. Check LCM_FLAG of the PO Schedules and PO distribution
--> if inventory item asset flag = Y, this step should not be required.
SQL$Plus
Login: apps/apps
Update LCM_FLAG of the PO Schedules for the PO created above
This is a known issue from PO team. When created, PO Schedules of LCM enabled
organizations should be set to “Y”

SELECT po_header_id FROM po_headers_all

WHERE segment1 = '&PO_number';
Get the PO_HEADER_ID of entered PO

UPDATE po_line_locations_all
SET lcm_flag = 'Y'
WHERE po_header_id = &po_header_id;

UPDATE po_distributions_all
SET lcm_flag = 'Y'
WHERE po_header_id = &po_header_id;

COMMIT;
12. Create New LCM Shipment
Landed Cost Management Responsibility
/Workbench/Shipments

Create a new LCM shipment

Choose “Seattle Distribution Center”, click Create
Header:
Operating Unit = Vision Operations
Receiving Location = D2 - Seattle Dist
Shipment Date = 17-Oct-2010
Shipment Type = TEST_SHIP_TYPE
Status = Incomplete

Line Groups:
Group = 1
Group Reference = T-SHIP
Source Type = Purchase Order
Third Party = Allied Manufacturing
Third Party Site = LOS ANGELES
Click Header
Click Line Group 1
Click Lines

Find Expected Shipment Lines

Third Party Site = LOS ANGELES
Purchase Order = 6120
Click Go
Select all the Lines.
Click Save.
Click Header
Choose Actions = Generate Charges
Click Go
Gets:
Confirmation
The Generate Charges action has been executed successfully.

Choose Actions = Manage Charges

Click Go

Click Apply
Choose Actions = Validate
Click Go
Gets:
Confirmation
Landed Cost Validation has been executed successfully.

Choose Actions = Calculate

Click Go
Gets:

Confirmation

Landed Cost Calculation has been executed successfully.

Choose Actions = View Landed Cost

Click Go
Click ‘Return to Shipment’ Link
Choose Actions = Submit
Click Go

The Shipment# 2 status = Completed

Web Service is called to move data from LCM to RCV (RTI records).
Receiving Transaction Processor (RTP) is called to process RTI records.
13. Create LCM Receipt
Purchasing Responsibility
/Receiving/Receipts
Choose Organization D2
Source Type = LCM
Click LOV of Shipment
Choose Shipment# = 2.1

Click on “Find” button

“Receipt Header” form window will appear.
Leave it as it is so that a new receipt is created.
Close the “Receipt Header” form window
one shipment line showing on the screen.
Check all the lines.
Save .
receipt# 5013 is created
14. Create Deliver Transaction
Purchasing, Vision Operations (USA)
/Receiving/Receiving Transactions
Query out receipt# 5013
For each line

Click Help/Dianostics/Examine
Block = RCV_TRANSACTION
Field = UNIT_LANDED_COST
Value = 198.57
Click Help/Dianostics/Examine
Block = RCV_TRANSACTION
Field = LCM_SHIPMENT_LINE
Value = 21

Unit Landed Cost of Corresponding shipment line and corresponding shipment line
would be stamped on the Receiving transactions records.