Skip Headers

Oracle Landed Cost Management Process Guide
Release 12.1
Part Number E14299-04
Go to Table of Contents
Contents
Go to previous page
Previous
Go to next page
Next

Understanding Landed Cost Management

This chapter covers the following topics:

Oracle Landed Cost Management Overview

Oracle Landed Cost Management enables you to manage estimated and actual landed cost for an item purchased from a supplier. Using Oracle Landed Cost Management you can determine the "real" costs associated with acquiring items including insurance, transportation, handling, storage costs, container fees, and import or export charges. Knowledge and visibility into these trade costs help organizations better evaluate new product plans, price their items, and negotiate contracts with both suppliers and customers.

Using Oracle Landed Cost Management you can first estimate the landed costs for the items and then you can update those costs with the actual landed costs as they become known. Oracle Landed Cost Management gives you the option to determine and calculate estimated landed costs before the receipt of the items into inventory (Landed Cost as a Pre-Receiving Application) or after the receipt of the item into inventory (Landed Cost Management as a Service). Then when you create and match invoices against those receipts this price information is used to calculate the actual landed costs for the item. Within Oracle Landed Cost Management you can view the estimated and actual landed costs for an item side by side. This gives you valuable information about the landed cost for an item and where cost improvement can made.

During the processing of landed costs using Oracle Landed Cost Management, inventory valuations for various cost methods are maintained providing better visibility into individual items profitability and an organizations outstanding exposure. This data provides insight for item forecasting and budgeting and provides clear evidence of the detailed accumulation of expenses for regulatory requirements and reporting.

For more detailed information on using Oracle Landed Cost Management, see Understanding Landed Cost as a Pre-Receiving Application and Understanding Landed Cost as a Service.

Features of Landed Cost Management

Oracle Landed Cost Management provides several features. A few of the key features are:

Benefits from Using Landed Cost Management

Operational Life Cycle

the picture is described in the document text

Using Oracle Landed Cost Management will provide your organization with several benefits. Oracle Landed Cost Management will help organizations:

Integration with Other Oracle Applications

Integration with Other Oracle Applications

the picture is described in the document text

Oracle Landed Cost Management integrates with several other Oracle E-Business suite applications during the processing of estimated and actual landed costs for an item. The Oracle E-Business applications that integrate with Oracle Landed Cost Management are: