Redwood: Review Item Landed Costs Using the New User Experience

The Item Landed Cost page provides you a centralized view of all landed cost details associated with an item. This includes freight, duty, and other charges allocated through trade operations. You can quickly analyze how landed costs are applied across receipts, monitor cost components, and trace third-party charges that contribute to final inventory valuation. This new Redwood page provides a detailed view of an item’s landed costs, organized by receipts and purchase orders. By using specific filters such as purchase order, item, business unit, inventory organization, or receipt date range you can narrow down the data for items you want to analyze.

You can toggle between the Charges view and the Variances view, helping you focus on either the detailed landed cost breakdown or the differences between estimated and actual costs.

  • In the Charges view, you can see the purchase order price, landed cost per unit, purchase value, accounted landed cost, total item or receipt value, and the landed cost as a percentage of the total.
  • In the Variances view, you can see the estimated and actual costs per unit, their corresponding total amounts, and the variance amount and percentage.

You can sort by any of these values to quickly identify the items and receipts that contribute most to your total landed costs, making it easier to identify cost drivers and opportunities for improvement.

Figure 1: View Item Landed Costs Charges

View item landed costs charges

Figure 2: View Item Landed Costs Variances

View item landed costs variances

Click the accounted amount or variance amount to drill down to the underlying trade operations and charges that contribute to the landed cost for that specific item and receipt.

Figure 3: Landed Cost Details for a Receipt

Landed cost details for a receipt

Some of the benefits of this feature include:

  • Quickly identify the exact trade operations and charges contributing to a landed cost or variance, enabling faster identification of cost drivers and issues.
  • Reduce time spent investigating cost discrepancies by directly accessing the source of the charge or variance.
  • Use detailed cost breakdown of items across inventory organizations to negotiate better rates with suppliers or service providers, optimize shipping methods, or evaluate supplier performance.
  • Identify high-cost trade operations or inconsistent charges across receipts, thereby, proactively managing and reducing landed cost variability.

Steps to Enable

Follow these steps to enable or disable this feature:

  1. In the Setup and Maintenance work area, search for and select the Manage Landed Cost Profile Options task.
  2. On the Manage Landed Cost Profile Options page, search for and select the ORA_CML_VIEW_ITEM_LANDED_COST_REDWOOD_ENABLED profile option code.
  3. In the Profile Values section, set the Site level to Yes. The default value is No.
    • Yes = enables the feature
    • No = disables the feature
  4. Click Save and Close. Changes in the profile value will take effect the next time you sign in.

After you've set the profile value correctly, the task pane under Receipt Accounting will show the task menu link as Item Landed Costs. Using this link, you can access the Redwood page.

Tips And Considerations

  • You can provide guidance such as tutorials, company policies, and best practices in the context of landed cost charges using guided journey tasks. 
  • The per unit amounts reflected in Item Landed Costs are used for accrual accounting and inventory valuation.
  • Distributions are created for each of the charges listed based on the cost component mapping to cost element setup in Cost Accounting.

Key Resources

  • Oracle Fusion Cloud SCM: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.
  • Oracle Fusion Cloud SCM: Using Supply Chain Cost Management guide, available on the Oracle Help Center.

Access Requirements

Users who are assigned a configured job role that contains the following privileges can access this feature:

  • View Item Landed Costs (ORA_CML_VIEW_ITEM_LANDED_COST_REDWOOD_ENABLED)
  • View Item Landed Costs for Purchase Order and Transfer Order In-transit Receipts by Web Service (CML_ITEM_LANDED_COSTS_WEB_SERVICES)