nded Cost Management Set Ups

The below are the listed Landed Cost Management Set Ups for a process flow:

1. Enable the LCM flag in inventory organization parameters and define the LCM Variance account.

2. Define the LCM accounts in Receiving options

3. Enable the Pre-Receiving flag if required depending on the business requirement.

Navigation: Purchasing responsibility > Setup > Organizations > Receiving Options

4. Define the Organization Access to the inventory organization which is enabled for LCM for the
responsibility 'Landed Cost Management' without which the organization will not appear in the LOV of
LCM workbench.
Navigation: Inventory responsibility > Setup > Organizations > Organization Access

5. Define the Cost Factors in Purchasing which will be used as charges in the LCM Shipment. Based on
the allocation basis (quantity/value/weight/volume) and pricing basis (per unit or fixed amount or % of
line price) defined for the charges in the Cost factor page, the allocation of amount to the charges will
be decided.
Navigation: Purchasing Responsibility > Setup > Purchasing > Cost Factors

6. Define the LCM options, Shipment line types and Shipment types in LCM workbench

7. Associate the default Shipment line type to the Shipment type in LCM workbench

8. Define the Party types allowed, Party usages allowed and Source types allowed for the Shipment
types defined in LCM workbench

9. Define the modifiers in Advanced Pricing for the charges that need to be used in LCM shipment. This
setup shows whether the charges need to be applied at PO line level or header level and the rate at
which the charge allocation should be done.
Navigation: Purchasing Responsibility > Advanced Pricing > Modifiers > Modifier setup

10. Define the following Landed Cost Management profile options

INL: Default Currency Code for QP Charges Generation

INL: Default Currency Conversion Type for QP Charges Generation
INL: Default Shipment Type for Open Interface

11. Define the following QP profile options at Landed Cost Management responsibility level

QP: Blind Discount Option = Yes

QP: Licensed for Product = Purchasing
QP:Item Validation Organization = <Set the item master organization>
QP:Pricing Perspective Request Type = Purchase Order
QP:Pricing Transaction Entity = Procurement
QP:Source System Code = Oracle Purchasing