Landed Cost Charge Lines

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. To create charge lines for a trade operation, edit the trade operation and click Add under Landed Cost Charges. The table lists the options available on the Create Charge Line dialog.

Field	Description
Charge BU	The requisitioning business unit for the trade operation.
Charge Name	Name of the landed cost charge.
Charge Basis	The level where the charge is captured. This criteria used to determine how charges are calculated and distributed among the different purchase order. 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 in 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.
Related Charges	If you've set Charge Basis to Percentage of Other Charges, then click the icon next to Related Charges to add the related charge lines.
Charge Basis UOM	Unit of measure used to calculate the charges.
Service PO	Enable this to derive the charge amount from a service PO line.
PO Number	PO number to derive the charge amount from.
Service PO Line Number	Service PO line schedule to derive the charge amount from.
Service PO Schedule	Service PO line number to derive the charge amount from.
Supplier	Select the supplier for which the landed cost charge is applicable.
Supplier Site	Select the supplier site for which the landed cost charge is applicable.
Charge Currency	Select the currency for calculating and allocating charges.
Rate	Provide the percentage value to calculate and allocate charges. You can enter a value only when charge basis is per unit or percentage of item price.
Amount	Provide the total charge amount. You can eneter a value only when charge basis is aggregate or in the case of service PO, where amount is derived from PO line.
Nonrecoverable Tax	This field is populated automatically from the taxation system if the Enable automatic tax calculation option is selected for the charge line. If this option disabled, user can manually add the amount.
Track Missing Invoices	Select this option to identify invoices that are missing or not yet received for the associated charges.
Currency Conversion Rate Type	Type of currency conversion rate applicable for the charge line.
Currency Conversion Date	Date for which currency conversion rate must be considered.
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.
Allocation Basis Base UOM	Unit of measure used to allocate the charges to PO schedules.

Additionally, add charge references to a charge line. Charge references are utilized to align AP invoices with charge lines, enabling the automatic linking of the charge lines. The values present on a charge line need to be accurately replicated on the invoice for landed cost. This allows the system to identify a match based on these parameters and establish a connection between the charge line and the corresponding invoice.

Various unique identifiers related to the shipment, such as ASN number, bill of lading number, or shipment date, can be employed as reference values. The applicable options are listed here.

• Name: Select the name of charge reference

• Value: Unique value for the reference

• Automatically Associate on Match: Select to allow automatic association of invoices.

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.