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September 28, 2015

9/28/2015 10:20:00 AM
Oracle Landed Cost Management Oracle Landed Cost Management is a new module, which is introduced in Oracle E-Business Suite Release 12.1.
Oracle Landed Cost Management's basic functionality is to capture other costs that are incurred at the time of purchasing goods from a supplier; these costs may contain the following:
 •    Port charges
 •    Transportation cost
 •    Shipping agent fee
 •    Storage cost
 •    Demurrage

Using Oracle Landed Cost Management, we can identify the factors mentioned earlier so that it becomes easier for us to calculate the cost estimation and make plans. Oracle Landed Cost Management gives a clear visibility of cost incurred on various factors, which makes planning for procurement easier

Oracle Landed Cost Management process The flow of Oracle Landed Cost Management starts when a purchase order is raised and completes after all the invoices in the system related to the order total cost are calculated. Using Landed Cost Management, we calculate the estimated cost and actual cost for items. These costs are variable, and includes transportation charges, freight charges, port charges, demurrage charges, container deposit, and insurance.

Oracle Landed Cost Managment

Oracle Landed Cost Management provides several features.
A few of the key features are:
 • Charge Management Oracle Landed Cost Management collects an unlimited number of estimated charges and enables you to configure how theses charges are applied to a shipment line, a group of lines within a shipment, or an entire shipment. It applies these charges based on weight, volume, quantity, or the value of the items being traded. These charges can be categorized by different cost factors which will ultimately govern the behavior in how they are included in a total landed cost calculation. Once actual amounts are received, Charge Management records the new value for comparison with the earlier estimates.
• Landed Cost Calculation The Oracle Landed Cost Management Calculation process provides the ability to calculate the estimated landed cost based on charges manually assigned and automatically allocated based on the configuration of the charge lines. It also calculates the actual landed costs by prorating the actual invoices and proportional taxes to obtain the variances between what was estimated and what was charged. Cost components summed in the calculation remain stored at the most granular level for detailed tracking of charge amounts while variances are updated to the appropriate accounts.
 • Shipments Workbench It is common that the financial flows do not mirror the physical supply chain transactional flows. Oracle Landed Cost Management helps to link these two flows together and provides visibility and traceability from one to the other. With the Oracle Landed Cost Management Shipments Workbench, companies can view the real time accrual updates for a particular receipt or shipment. They can validate the accuracy of a suppliers estimate by comparing estimated and actual costs and can view the percentage of a particular cost component for a particular item. Additionally, you can make use of all the flexible Oracle and E-Business Suite tools to meet your own customized reporting requirements.
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