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.
