Tuesday 7 July 2015

LCM(Landed cost management) as Pre-Receiving Transaction flow step by step guide

PRE-RECEIVING LCM TRANSACTION FLOW STEPS

Step1: Responsibility: Purchase Order Super User.
           Navigation: Oracle Purchasing--> Purchase Order--> Purchase Orders.
            Create Purchase Order with LCM enabled Organization.
            Supplier: MATERIAL SUPPLIER
            Supplier Site: Chennai
            Ship to: ICD_LCM_Org (LCM enabled Org.)
            Line: (Item): RMLCM00002
            (Make sure Inventory Asset flag = Y in this org )
            Quantity: 1 
            Price: 2000 (INR)
            Receipt Routing = “Standard Receipt”                                 
            Match Approval Level = “2-Way”                         
            Invoice Match Option =“Receipt”->it is mandatory for LCM actual management      
            Destination type =  “Inventory”    
            Save and Approve the Purchase Order.  



    
 Step 2: Responsibility : Landed Cost Management.
             Navigation:  Workbench --> Shipments
             Header:Choose the LCM Enabled Inventory Organization(ICD_LCM_Org)
             Create a new Shipment
             Choose the Operating Unit 
             Choose the Shipment Type
             Select the Receiving Location and Shipment Date
             Line Group: Select the Group .
             Enter a Group Reference : Material Shipment
             Choose the Source Type: Purchase Order
             Third Party: Choose the Supplier of the Purchase Order
             Third Party Site: Chennai (Supplier Site)
             Click on Save and then Apply.
             Displays
             Confirmation         
             The Shipment 1 has been saved successfully.
             Click on Lines Tab
             Choose the Approved Purchase Order  and Click on Go.
             Select the Line , Click on Save and Apply.




Step 3: Choose the Validate option from the Actions
             Choose the Manage Charges Option  From Actions and then click on Go.
             Charges Line : Select in the Line 1 the Type option for Freight
             Select the Third Party for Freight Charges (FREIGHT SUPPLIER)
             Select the Third Party Site (i.e. Salt Lake)
             Enter the Freight Amount
             Associations: In Type select any Type i.e Shipment Line Number.
             Similarly select for Insurance.


Step 4: Select the Validate option from Actions and then click on Go.


Step 5: Select the Calculation option from Actions and then click on Go.

Step 6: Click on View Landed Cost option from Actions and click on Go, to find out the details of the 
             Landed Cost.


     Click on the Record to get the full detailed graphical  landed cost.


Step 7: Click ‘Return to Shipment’ Link
             Choose  Actions = Submit
             Click Go
             Select Submit option from Actions and then click om Go.
             The status of the line will be changed to Completed status.

Step 8: Receive LCM Shipment
            Navigation: Oracle Purchasing Super User-->Receiving-->Receipts           
            Choose Organization
            Select Source Type = LCM
            Click LOV of Shipment




              After Receiving the purchase order deliver the item.

Step 9: Item Cost Details
             Navigation : Cost Management SLA--> Item Cost--> Item Cost History
             Select the item and Click on find.
             In the Item cost both the purchase order cost with the Freight Cost and Insurance Cost
             added in the Item cost.


Step 10:  Payable Invoice creation.
                 Navigation: Payable Super User-->Invoices-->Entry-->Invoices
                 Create a payable invoice by PO match for creating the Material PO Invoice.

   

Step 11: Another Payable Invoice is to be created for Freight Cost 
              Create a Invoice with the Freight Supplier and then match the Invoice with the Material Supplier.


     Match the Freight amount with Material Supplier with the Purchase Order and Receipt number.
     Click on Find.


 Step 12:    Select the  the Cost Factor name and enter the exact Freight amount.

                                 

  Step 13: If at the time of Invoicing the Freight Cost Increases, then after selecting Cost factor enter the 
                 new Freight charge amount. Validate the Payable Invoice.

            

 Step 14: New Freight Cost is to be updated in the Landed Cost also.
                Navigation: Landed Cost Management Responsibility--> View--> Submit New Request-->
                "Matches Interface Import ".
                 Workbench--> Shipments
                 Search the transaction , Select View Landed Cost from Actions and Click Go


   Now if the item cost is checked , it also gets updated.


  Similarly for the Insurance Supplier Invoice can be created and updated with the new cost. 





  







            



      







 




















          












       
  

  
     

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