Manage Charge Names

The landed cost of purchased items includes their material cost as well as supplier and third-party charges incurred to deliver them to their final destination.

In the Setup and Maintenance work area, use the Manage Charge Names task in the Manufacturing and Supply Chain Materials Management offering to define landed cost charge names that are used to capture and analyze landed cost charge amounts.

User-defined landed cost charges can include the following examples:

• Freight and transportation costs, from the supplier to the buyer's ultimate location.

• Costs associated with the physical preparation of the goods in order for them to be transported such as labeling, picking, packaging and packing goods, including all inventory, distribution center, and warehouse costs.

• Loading and unloading costs, loading penalties, and other surcharges.

• Haulage, storage, and detention fees.

• Equipment and container fees.

• Sales tax and value added tax (VAT).

• Import and export charges, import VAT fees, customs brokerage fees, and excise taxes.

• Port or pier fees, cargo handling fees, and harbor maintenance fees.

• Currency revaluations, with currency fluctuations and multiple currency conversions.

When you define landed cost charges, use the Manage Cost Component Mappings task to define how landed cost charges map to cost elements in Cost Accounting.