<Insert Picture Here> new module of E-Business Suite R12.1.
• It provides solution to customers to capture all the
costs related to the acquisition like freight, insurance, taxes (Country, state , local etc).
• It calculates the landed cost of the item to be
considered for costing and accounting purposes. Overview (continued)
• LCM feature can be used by enabling the inventory
<Insert Picture Here> organization as LCM enabled in Organization Parameters form.
• Perform PO receipt in that organization and match
invoice against the receipt so that the landed cost can be incorporated in the item cost and the accounting entries will include the landed cost.
• Estimated Landed Cost (ELC) gets calculated while
performing the PO receipts and Actual Landed Cost (ALC) gets calculated after invoice matching is done. <Insert Picture Here>
LCM Business Flows
Business Flows
Pre-Receiving: LCM shipment is created in LCM Shipments workbench of LCM application with all the charges associated to calculate the estimated landed cost and then the purchase order receipt is created against the LCM shipment.
LCM as a Service: Purchase order receipt is created directly and the estimated landed cost will get calculated in the background process by running some concurrent programs during receipt creation. <Insert Picture Here>
LCM RCV Integration
LCM-RCV Integration
<Insert Picture Here>
1. LCM as Pre Receiving 2. LCM as a Service LCM-RCV Integration LCM-Receiving Integration Flow – LCM as Pre-receiving
LCM Interface LCM
User Enter LCM LCM calculates shipments with Yes shipments and Estimated Landed Landed cost to charges Cost Receivng
RCV Create RCV User Enter Records in RSH/ Requires Shipments with Receipts with RSL as LCM Records in RTI as LCM as pre- landed cost and reference to LCM shipment (similar LCM Shipments receiving? LCM shipoment shipment to ASN) line reference
Accrue at Landed Cost Costing
Item Costing at landed Cost LCM-RCV Integration LCM-Receiving Integration Flow – LCM as a blackbox
LCM
LCM Pulls the RTI
records, charges Update RTI from QP an records with status calculate Landed ‘LCM Complete” Cost
RCV Create RCV Record in RTI Requires User Enter Records in RTI Shipments with with Status “LCM LCM as pre- NO receipts with with stauts “LCM landed cost and Pending “ for receiving? reference to PO complete” LCM shipoment Landed cost line reference
• INL: Default Shipment Type for Open Interface = Test Shipment • INL: Volume UOM Class = Volume • INL: Quantity UOM Class = Quantity • INL: Weight UOM Class = Weight
Profiles to be setup at application = Oracle Landed Cost Management’
calculation, a web service is called to move data from LCM to Receiving Interface.
• Receiving Transaction Processor (RTP) is called to
process RTI records.
• LCM Shipment gets created in Receiving.
• Receive the LCM shipment.
Find Expected Receipts (N) Inventory > Transactions > Receiving > Receipts Enter Receipt Details Save View Receiving Transactions (N) Inventory > Transactions > Receiving > View Receiving Transactions View Receiving Transactions (continued) Receiving Analyzer Results (N) Purchasing > Requests > Submit a New Request Output Data Output Data (continued) LCM as a Service flow Others Changes
• It is more or less the same setup in both LCM and
PO/Inventory modules with the following exception.
• In Receiving Options, the flag ‘Pre-Receiving in LCM’
is unchecked for this business flow. Profiles Setup The following profiles should be set at site level: • INL: Default Shipment Type for Open Interface = Test Shipment
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 Receiving Options Setup Create PO (N) Purchasing > Purchase Orders > Purchase Orders Receive the PO (N) Inventory > Transactions > Receiving > Receipts Enter Receipt Details Check Receipt Status Run Landed cost Integration Manager (N) Purchasing > Requests Check the Receipt Status Run Shipments Interface Import (N) Landed Cost Management > Other > Requests View Receiving Transactions (N) Inventory > Transactions > Receiving > View Receiving Transactions View Landed Cost Details (N) Landed Cost Management > Workbench > Shipments View Landed Cost Details (continued) Receiving Analyzer Results (N) Purchasing > Requests > Submit a New Request Output Data Output Data (continued) Troubleshooting
• In the case of ‘Pre-Receive’ flow, never delete LCM shipment data in
Receiving as there is backed up shipment data in LCM also.
• If customer requests for a datafix to delete the LCM shipment, log
separate bugs with LCM and RCV and get a datafix script from each product to delete the shipment data after development’s investigation.
• In the case of ‘LCM as a Service’ flow, never delete any receiving
interface record in LC_PENDING or LC_INTERFACED status. In this case also, there is data in both RCV and LCM products. If required, log a datafix bug with development.
• Troubleshooting any other issue is same as a regular non LCM receipt
