Landed Cost Charges

Trade operation charge is an estimated or actual landed cost charge for allocation to purchase order schedules, and subsequently to receipts. Landed cost charges are additional material supplier charges and third party charges.

These charges are incurred in the process of receiving material into ownership or possession.

Field	Description
Procurement BU	The requisitioning business unit for the trade operation.
Charge Basis	The level where the charge is captured. The charge basis options are as follows: Aggregate. If the charge is the total amount, use Allocation Basis to specify allocation. Per Unit. Fixed rate per unit of items. The charge is entered in the Rate field. Percentage of Item Price. A percentage of the full item price. The charge is entered in the Rate field. Percentage of Other Charges. Percentage of another charge in the Trade Operation. This is a good way to model tax applying to another charge. The charge is entered on the Related Charges lines as follows: -Item Value of the source charge -Percentage of charge amount Variable Per Unit. Similar to Per Unit but specified against a specific purchase order line schedule. There may be different rates in a charge for different schedules. The Rate is defined directly at the purchase order schedule level associated with the charge line. Variable Percentage of Item Price. Similar to Percentage of Item Price but specified against a specific purchase order line schedule. There may be different percentages in a charge for different schedules. The Rate is defined directly at the purchase order schedule level associated with the charge line.
Allocation Basis	The basis used to allocate the charge to purchase order schedules. The allocation basis options are as follows: Equally. The aggregate charge value is allocated equally across purchase order schedules associated with a charge line. Quantity. The aggregate charge value is allocated in the ratio of quantities present on each of the purchase order schedules. Volume. The aggregate charge value is allocated in the ratio of volumes (represented in terms of the Base UOM) present on each of the purchase order schedules. Weight. The aggregate charge value is allocated in the ratio of weights (represented in terms of the Base UOM) present on each of the purchase order schedules. Item Value. The aggregate charge is allocated in the ratio of item value (purchase order price multiplied by quantity) present on purchase order schedules. Manual Allocation Factor. The aggregate charge is allocated to the purchase order schedules based on the manual factor provided by the user at purchase order schedule level on the charge line.
Value	Identification of associated charge reference, such as bill of lading.

The details regarding the allocation of charges are captured in the charge line Status field. The charge line Status values are described in the following table.

Charge Line Status	Description
New	This is the initial status assigned to a new charge line.
Pending PO Schedule Association	The charge line has been successfully saved, but no purchase order schedules have been associated with the charge.
Ready for Allocation	The charge line has been successfully saved and the following conditions have been met: The purchase order schedules have been associated with the charge line. Any applicable per unit and percentage values have been entered in the Rate field. A warning message will be displayed if the applicable per unit and percentage values haven't been entered on a charge line.