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How to configure LCM After receiving
This document provides steps to configure Landed Cost Management (LCM) in Oracle EBS R12.1.3. The steps include: applying required patches; creating new account codes for LCM; defining cost factors; defining LCM shipment types, organizations, and options; integrating with Oracle Advanced Pricing by setting profile options; and testing the LCM configuration. Optional steps include assigning items to the new inventory organization and opening a period for the new organization.
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Introduction to configuring Landed Cost Management (LCM) in EBS R12.1.3 after receiving or as a service.
Steps to set up LCM include applying patches and creating new account codes for various cost factors.
Defining cost factors, including allocation basis and various cost variance accounts for LCM. Steps for setting profile options, organization setup, and defining shipment types for LCM.
Finalizing LCM configuration with receiving options, account assignments, and period management.
Defining items to test and additional LCM options for integrated setup.
Integration setup of Oracle Advanced Pricing for automating charges in LCM shipments.
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How to configure LCM After receiving
- 1. How to configureLCM(Landed Cost Management) Setup steps for LCM configuration(After-Receiving Or LCM as Service)) On EBS R12.1.3
- 2. LCM Setup Steps Firstplease apply Patches 17381106:R12.INL.B and 20720418:R12.INL.B 19660299:R12.AP.B Step 1: Create New Account Code Example like as shown below:
- 3. Value Description ParentQualifiers 8800 LCM Accounts Yes Yes,No,Liability,Yes,No 8801 LCM Absorption No Yes,Yes,Liability,No,No 8802 LCM Invoice Price Variance No Yes,Yes,Liability,No,No 8803 LCM Exchange Rate Variance No Yes,Yes,Liability,No,No 8804 LCM Tax Variance No Yes,Yes,Liability,No,No 8805 LCM Default Charge a/c No Yes,Yes,Liability,No,No 8806 LCM Cost Variance No Yes,Yes,Expense,Yes,No Step 2: Define Child Range
- 4. Step 3: SetProfile Option as Follows Profile Value Level QP: Blind Discount Option Yes Application Level (Oracle Landed Cost Management) QP: Licensed for Product Purchasing Application Level (Oracle Landed Cost Management) QP: Pricing Perspective Request Type Purchase Order Application Level (Oracle Landed Cost Management) INL: Allow Updates to Completed Shipments Yes Site QP: Pricing Transaction Entity Procurement at User QP: Source System Code Oracle Purchasing User INL: Default Shipment Type for Open Interface per your set up Site INL: Volume UOM Class INL: Quantity UOM Class INL: Weight UOM Class INL: Default Currency Conversion Type for QP Charges Generation Choose the functional currency or for others currencies, a conversion rate should be recorded in "Daily Rates" form (Setup->Currency->Rates->Daily) using Conversion Type
- 5. Step 4: DefineCost Factors Oracle Purchasing-->Setup-->Purchasing-->Cost Factors-->Create Create
- 6. Code Cost FactorName Description Allocation Basis Acquisition Cost Indicator Invoice Line Type SH_HANDLING_QTY SH Handling Qty SH Handling Qty Quantity Inventory Freight SH_FREIGHT_V SH Freight By Value SH Freight By Value Value Inventory Freight
- 7. Step 5: DefineLCM Shipment Line Type Step 6: Define LCM Shipment Type
- 8. In Party TypeAllowed TAB in Party Type select the value as Organization. In Party Usages Allowed TAB in Party Usage select the value as Supplier.
- 9. In Source TypeAllowed TAB in Source Type select the value as Purchase Order. Step 7: Define New Organization with LCM check Box ON
- 13. Step 8: ReceivingOption: Un Check Pre-Receiving in LCM box for After Receiving type LCM.
- 14. LCM Accounts Account LandedCost Absorption Account 01-000-8801-0000-000 Invoice Price Variance Account 01-000-8802-0000-000 Exchange Rate Variance Account 01-000-8803-0000-000 Tax Variance Account 01-000-8804-0000-000 Default Charge Account 01-000-8801-0000-000 Step 9 : Open Period for New Organization.
- 15. Step 10: AssignItem to the new Inventory Org. Step 11: Define LCM Options LCM-->Setup-->Options
- 16. Define Items ToTest
- 20. Oracle Advanced Pricing(Optional) Integration with Oracle Advanced Pricing enables you to set conditions for the automatic application of the required charges, fees, duties and taxes for a landed cost management shipment. This means that estimated charges can be applied automatically to a shipment. Note: Oracle Advanced Pricing can also be used when managing landed cost for items that are acquired through documents that do not have purchase order receipts, such as internal transfers and drop shipments. Oracle Advanced Pricing can be used for the automatic application of the required charges, fees, duties and taxes for a landed cost management shipment that are associated to these types of documents or transactions. Setting Up Advanced Pricing Profile Options If you are using Oracle Advanced Pricing to integrate with Oracle Landed Cost Management then you will want to define Advance d Pricing profile options in a manner recognized by Landed Cost Management. The Advanced Pricing application is required if you need automatic charge lines generation when using Landed Cost Management. Advanced Pricing has several profile options.The following table lists the Advanced Pricing profile options and the profile value settings that must be entered to enable the integration between Landed Cost Management and Advanced Pricing. Profile Value Level QP: Blind Discount Option Yes Application Level (Oracle Landed Cost Management) QP: Licensed for Product Purchasing Application Level (Oracle Landed Cost Management) And User QP: Pricing Perspective Request Type Purchase Order Application Level (Oracle Landed Cost Management) QP: Pricing Transaction Entity Procurement User QP: Source System Code Oracle Purchasing User For more detailed information on these profile options,see the Oracle Advanced Pricing Implementation Guide. Use this procedure to set up Advanced Pricing profile options: To Set Up Advanced Pricing Profile Options Typically, the System Administrator is responsible for setting up and updating profile option values. For more information, s ee Oracle Applications System Administrator's Guide, Setting User Profile Options. 1. Navigate to the System Profile Values window. The Find SystemProfile Values window appears.
- 21. 2. Enter QP%in the Profile field and click Find. The System Profile Values window appears displaying all of the Advanced Pricing (QP) profile options.
- 24. 3. Locate thespecific profile option and enter the appropriate profile value. 4. Click the Save icon in the tool bar.