Create Actual Landed Costs

You can use a Trade Operation to create landed cost charges associated with purchase order receipts of material. You can create a trade operation for an upcoming shipment to capture the landed cost charges incurred for that shipment.

Trade operations are created in the Landed Costs work area on the Manage Trade Operations page. You can associate a purchase order to a Trade Operation based on various identifiers, including purchase order number or advance shipment notice (ASN).

To create actual landed costs, complete the following steps.

1. Navigate to the Payables work area and create an invoice. Enable an invoice line for landed cost processing by selecting the Enable option on the Landed Costs tab.

2. Select the References plus icon and add the Charge Name, Reference Type, and Reference Value. These fields will be used to match the invoice line to the Trade Operation charge line. Save the changes.

3. Select Validate from the Invoice Actions menu. Ensure that the Validation status updates to Validated on the Invoice Summary tab.

4. Select Post to Ledger from the Invoice Actions menu. Ensure that the Accounting status updates to Accounted on the Invoice Summary tab. Save and close the invoice.

5. From the Navigator menu, select Tools, and then Scheduled Processes. Search for and select the Transfer Costs to Cost Management process and set the required parameters. The Cutoff Date must be greater than or equal to Invoice creation date. Submit the process.

6. From the Navigator menu, select Receipt Accounting.

7. From the Tasks panel, select Manage Trade Operations. Create a Trade Operation and complete the required fields. Save your changes.

8. Add a charge line to the Trade Operation and complete the Charge References fields. Enable the Automatically Associate on Match option.

   The Charge References information will be used to automatically associate an invoice that has matching reference data.

9. Select the Enable Automatic Tax Calculation option if you want to use the Tax application to automatically calculate the tax.

10. Click on the Associate Default Material Purchase Orders button.

11. Click on the Select and Add button and search for and select the required purchase order. You can associate a purchase order to a Trade Operation based on various identifiers, including the Purchase Order number or the Shipment Number (ASN). This associates all of the Trade Operation charges to the material Purchase Order specified in the Trade Operation header.

12. Click Save. When the application has associated the purchase order to the Trade Operation charge lines, the Charge Line Status displays a Ready for Allocation message when you hover over it.

13. Click on a charge. The Charge Details area of the page shows the purchase order line schedules associated with the charge.

14. From the Actions menu in the Trade Operation header, select Update Status, and set the status to Open.

    This informs Receipt Accounting that the charges in this Trade Operation are to be added to the material cost of the items received against the Purchase Orders referenced in the Trade Operation. Create and submit the receipt in the Receiving application.

15. From the Actions menu in the Trade Operation header, select Allocate Charges. The Charge line status is updated and displays Successfully Allocated when you hover over the icon. The total amount of each charge is displayed in the Landed Cost Charges area. This is the estimated charge amount that's anticipated to be applied when the items in a Purchase Order are fully received.

16. In the Landed Costs work area navigate to the Manage Landed Cost Processes page from the Tasks menu. Select and run the Prepare Invoice Data process.

17. On the Manage Landed Cost Processes page select and run the Associate Invoices to Trade Operation Charges process.

18. In the Landed Costs work area navigate to the Manage Charge Invoice Associations page from the Tasks menu, and select the required invoice. Set the Association Status to All. The invoice association status is displayed in the Association Details region, including the association attributes, charge line details, corresponding invoice line details, and match status for each charge line.

19. In the Landed Costs work area navigate to the Manage Trade Operations page. Search for and open the required Trade Operation for editing. The Charge Line Status will be set to Requires Reallocation.

20. Click on the Allocate Charges button. The actual charges are added to the Trade Operation.