Oracle Landed Cost Management

Oracle Landed Cost Management (LCM) gives organizations financial visibility into their extended supply chain costs, including transportation and handling fees, insurance, duties and taxes.

Oracle LCM initially estimates these costs and later updates them with actual amounts as they become known, allocating them to shipments, orders, and products. This allows companies to maximize profits, improve visibility into outstanding liabilities, enhance competitiveness, and ensure that complex trade activities are compliant with regulatory mandates.

This chapter describes the following test flows in Oracle Landed Cost Management:

• Verify Landed Cost Management Shipment Receipt through Mobile in Pre Receiving Scenario
• Verify Landed Cost Management Shipment Receipt through Forms in Pre Receiving Scenario
• Verify Purchase Order Receipt through Forms in Landed Cost Management Black Box Scenario
• Verify Copying Simulated Landed Cost (SLC) while Calculating Estimated Landed Cost (ELC) for Standard Purchase Order in Service

Prerequisites

• Purchase order.
• Charge types and cost factors are decided, and modifier created for each charge type.
• Organization is LCM enabled, and LCM options are defined for the organization.

Profile Options

Table 33-1 Profile Options for Oracle Landed Cost Management

Profile Name	Profile Value	Level
QP: Licensed for Product	Purchasing	User
QP: Blind Discount Option	Yes	User
QP: Pricing Perspective Request Type	Purchase Order	Site
QP: Pricing Transaction entity	Procurement	User
QP: Source System Code	Oracle Purchasing	User
INL: Default currency conversion type	Corporate	User
INL: Default currency code for QP Charge	USD	User
INL: Default Shipment type for Open interface	St-1	User
INL: Quantity UOM class	Quantity	Site
INL: Weight UOM class	Weight	Site
INL: Volume UOM class	Volume	Site

Predefined Data

Table 33-2 Predefined Data for Oracle Landed Cost Management

Page Name	Field Name	Field Value
Shipment Types	Shipment Type Name	St-1
Shipment Line Types	Shipment Line Type Name	SLT-01

Setup Data

Table 33-3 Window Setup Data for Oracle Landed Cost Management

Window Name	Field Name	Field Value
Create Modifier	Modifier Name	LCM modifier
Inventory Accounting Periods	Accounting Periods	Open the current Period
Organizations	Organization Name	LC1-Seattle Org (Pre-Receiving)
	Organization Name	LC2-Seattle Org (Service)

Table 33-4 Page Setup Data for Oracle Landed Cost Management

Page Name	Field Name	Field Value
LCM options	Shipment Number Generation Shipment Number Type PO Price Tolerance (%)	Shipment Number Generation Shipment Number Type PO Price Tolerance (%)

33.1 Verify LCM Shipment Receipt through Mobile in Pre Receiving Scenario

Verifies the receipt of a completed shipment, through a mobile application.
Prerequisites

• Approved purchase order.
• Mobile server.

Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

33.2 Verify LCM Shipment Receipt through Forms in Pre Receiving Scenario

Verifies receipt of a completed shipment, through Forms. The receiving flow is similar with the purchase order receiving; the difference being that the quantity cannot be updated.
Prerequisites

• Approved purchase order.

Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

33.3 Verify PO Receipt through Forms in LCM Black Box Scenario

The whole estimated landed Cost (ELC) process is not required to be done manually. Once we receive the purchase order and submit the requests, the estimated landed cost is generated automatically.
Prerequisites

• Approved purchase order.

Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.

33.4 Verify Copying Simulated Landed Cost while Calculating Estimated Landed Cost for Standard Purchase Order in Service

When we request for some new materials, simulate all possible charges during the process of buying it, such as freight, insurance, packing, duty and other charges, then using this flow, we come to know whether the budget is enough for approving the purchase order.
Prerequisites

• Approved purchase order.

Profile Options
Not applicable.
Predefined Data
Not applicable.
Setup Data
Not applicable.