Lande Land ed Cost os t Management: nagement: Funct un ctio ional nal Overvie vervi ew Day, Date, Dat e, 2004 Thursd Thur sday, ay, Decemb De cember er 17, 2009 2009 tiMST me p.m. ET ET 7:00 AMtime Teleconference Teleconference AAccess: ccess: Teleconference North America: xxxx +1-877-664-9143 International: xxxx International: Password: Advisor +1-706-634-8961 Conference ID: 165475484 For complete details on all upcoming Oracle Advisor Webcast Events, please Note 398884.1, Oracle Advisor Webcast Schedule.
Upco pcomin ming g func f unctio tionalities nalities inclu in cluded ded in R12.1.2 :
• Integration between LCM and OPM • How to find Landed Cost Management information on metalink ? Use the keywords ‘EBS ‘EBS LCM’ • LCM shipments Interface, How to customize Charges, How to customize Taxes, How to setup integration between LCM and Adv. Pricing
Ag A g end en d a • Presentation Presentation – approximate approximately ly 45 minutes minutes • Q&A Sessi Session on – approx approxima imatel tely y 15 minutes minutes •
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Landed Cost Management Overview, Functional Process Flow, Setups, Debugging and Demonstration Presenter’s Name – Shekhar Ghosh
Agenda • Overview • Functional Process Flow • Setups • Debugging • Demonstration • Q&A
Oracle LCM Overview –
Introduction
–
Benefits
–
Integration with APPS modules
What is Landed Cost? • Definition: Landed cost is the estimated and/or actual cost to “land” products (goods or services) to an ultimate destination, inclusive of many different related charges like freight, tax, insurance etc. • Landed Cost data is a critical requirement for cross-border trace environment • Global - multiple geographies • Multiple industries
• Business Drivers • Dynamic compliance regulations • Strategic sourcing • Product profitability and margin analysis
Landed Cost Management - Operation Lifecycle
Enables Organizations •
Maximize Profits
•
Increase Competitiveness
•
•
Improve Financial Visibility into Supply Chain Enhance Financial Reporting Confidence and Compliance
LCM Integration with APPS modules
EB Tax
Tax Lines
Purchasing
Payables
Tax Lines
Landed Cost Management PO Information
Charge Mgt.
LC Calculator
Invoices
Product Cost Dashboard
Actual Landed Cost
Charges,
Adv anc ed Pricing
Freight, Insurance
Estimated Landed Cost
Receipts
Receiving
Estimated Landed Cost
Costing
Agenda • Overview • Functional Process Flow • Setups • Debugging • Demonstration • Q&A
Oracle LCM Functional Process Flow –
Usability Flows
–
Major Differences
–
Process flow • Pre-Receiving • Service (Post-Receiving)
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Sample Output
–
Costing & Accounting
LCM Usability Flows • Usability flows: • Pre-Receiving • LCM as a Service (Post-Receiving)
• Major Differences: • Pre-Receiving • Manual Shipment Creation • Manual adjustment of cost factor, item quantity and price is allowed • i-Procurement receiving is not supported • LCM as a Service • Shipment generate automatically • Manual addition and adjustment of cost factor is not allowed • i-Procurement receiving is supported
Landed Cost Calculations (Pre-Receiving )
Landed Cost Calculations (Post-Receiving )
Pre-Receive Goods in LCM Buyer
s n o i t c A r e s U
Supplier / Carrier
Receiving Clerk
Compliance Clerk
•Manage Shipments
Create PO
Ship Goods
Enter LCM Shipments
•Manage Charges •Calculate •Submit
Capture Estimated charges from QP
s n o i t c A d e t a m o t u A
LCM
Calculate Estimated Landed Cost
Receive Goods in Receiving wit h reference to LCM shipments RCV Interface LC Information to receiving as L CM shipments
Receive Goods b y LCM shipment
Costing Ac cr ue Recei pt s Update Item Cost
LCM as a Service for Cost Calculation Buyer
s n o i t c A r e s U
Create PO
Supplier / Carrier
Ship Goods
Receiving Clerk
Receive Goods in receiving
RCV
s n o i t c A d e t a m o t u A
Integrated wi th LCM
Integrate with Costing
LCM Capture Estimated Charges from QP
Calculate Estimated Landed Cost
Costing
Accr ue Recei pt s
Update Item Cost
Actual Landed Cost Payables Clerk
Supplier
s n o i t c A r e s U
LCM Clerk
Item Invoice Review A ctual Calculatio n Process
Enter Invoices Charge Invoice
LCM
Payables s n o i t c A d e t a m o t u A
Validate Invoices
Accr ual Rever sal / Acco un ting
Invoice details
Calculate Actual Landed Cost
Costing
Landed Cost Adju st men t
Sample Output – LCM Shipment • LCM -> Workbench -> Shipments
Sample Output View Landed Cost Details
• Displays the LC adjustments change history • Displays details of a specific adjustment
LCM Costing & Accounting Normal Receipt Account Receipt Std/Avg
Delivery Average
Delivery Standard
Receiving Inspection A/C @ PO Price
Debit
PO Price
Std Cost
Debit/Credit PPV A/C @ (PO Price-Standard Cost)
…
Debit
Landed Cost Landed Cost
Receiving Inspection A/C @ Landed cost Subinventory A/C @ Standard Cost
PO Price
Receiving Inspection A/C @ Landed Cost
…
Debit/Credit PPV A/C @ (Landed Cost - Std Cost)
Credit
Landed Cost
Inventory AP Accrual A/C @ Landed cost Organization material @ Landed Cost
PO Price
Receiving Inspection A/C @ PO Price
Account Receiving Inspection A/C @ Landed Cost
PO Price
Receiving Inspection A/C @ PO Price Subinventory A/C @ Standard Cost
Credit
PO Price
Inventory AP Accrual A/C @ PO Price Organization material A/C @ PO Price
LCM Receipt
Landed Cost Std Cost Landed Cost …
…
Agenda • Overview • Functional Process Flow • Setups • Debugging • Demonstration • Q&A
Oracle LCM Setups –
Inventory Parameters
–
Receiving Parameters
–
LCM Setups • Parameters • Shipping Line Type • Shipping Type
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Profiles
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Purchasing Cost Factors
Advanced Pricing Modifier
–
Define Inventory Parameters - LCM • Inventory -> Setup -> Organizations -> Parameters LCM
Enabled Flag
LCM
Variance Account
Define Receiving Parameters - LCM • Inventory -> Setup -> Receiving -> Receiving Pre-Receiving LCM
Accounts
in LCM Flag
Define LCM Parameters • Landed Cost Management -> Setups -> Options
Define Shipping Line Type - LCM • Landed Cost Management -> Setups -> Shipment Line Type
Define Shipping Type - LCM • Landed Cost Management -> Setups -> Shipment Type
Profiles Setup - LCM • Profile value at Site level: INL:
Default Currency Code for QP Charges Generation: USD
INL:
Default Currency Conversion Type for QP Charges Generation: Corporate
INL:
Default Shipment Type for Open Interface: Domestic Shipment
• Profile value at Application level: 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
Define Cost Factors - Purchasing • Purchasing -> Setups -> Purchasing -> Cost Factors
Define Costing Formula - Advance Pricing • Purchasing -> Advanced Pricing -> Modifiers -> Modifier Setups
Agenda • Overview • Functional Process Flow • Setups • Debugging • Demonstration • Q&A
Oracle LCM Debugging –
Concurrent Programs
–
Enable Debug parameters
–
View Log Messages
Concurrent Programs - LCM • Landed cost Integration Manager – Purchasing - This program is used to synchronize the transactions details between Receiving and Landed Cost Management • Shipments Interface Import – LCM - Program imports the shipping transaction from interface tables, calculates the estimated landed cost and populates base tables in LCM. • Matches Interface Import – LCM - This concurrent program is responsible for importing the matched invoice information from Oracle Payables into Landed Cost Management • Submit Pending Shipments – LCM - Program calculates actual landed cost and then performs the submitting action again for the shipment in LCM.
Enable Debugging - System Administrator Sys Admin -> Oracle -> Applications Managers -> Logs -> Log Setup
Debug Log Messages - System Administrator Sys Admin -> Oracle -> Applications Managers -> Logs -> Search
Agenda • Overview • Functional Process Flow • Setups • Debugging • Demonstration • Q&A
Oracle LCM Demonstration –
Purchase Order -> Estimated Landed Cost
–
Receiving -> Invoice and Payment
–
Match Invoice ->Actual Landed Cost
Note:978471.1 - LCM R12.1.1 Functional Process Flow - Landed Cost Management
Additional Information Note:978471.1 - LCM R12.1.1 Functional Process Flow Landed Cost Management Note: 836127.1 - Debugging R12.1 modules like Landed Cost Management (LCM) Using Oracle Applications Manager logs Feature Note 795387.1 - Landed Cost Management Diagnostic script
For More Information
The recorded version of this webcast will be available within the next 24 hours and can be downloaded from the Advisor Webcast Archive, Note 740297.1.
Agenda • Overview • Functional Process Flow • Setups • Debugging • Demonstration • Q&A
Questions •
To ask a question, move your cursor to the top of the screen and select the ‘bubble’ icon next to the moderator’s name.
•
A dialog box will open. Enter your question and select “Send.”
•
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