Create Actual Landed Costs

You can use a trade operation to capture the estimated and actual landed cost charges associated with purchase order and transfer order receipts of material. Actual landed costs are the final costs determined after all invoices are received and paid. Using charge references, the charge lines in a trade operation can be matched with the corresponding invoice lines.

1. Navigate to the Payables work area and create an invoice.

   1. Enable an invoice line for landed cost processing by selecting the Enable check box on the Landed Costs tab.

   2. Select the References plus icon and add details in the Charge Name, Reference Type, and Reference Value fields. 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.

   5. Save and close the invoice.

2. 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.

3. Navigate to the Receipt Accounting work area.

4. From the Quick actions menu, select Trade Operations.

   1. Create a trade operation and specify the required details. Save your changes.

   2. On the Charges tab, add a charge line to the trade operation and complete the Charge References fields. Enable the Automatically Associate on Match check box. The Charge References information will be used to automatically associate an invoice that has matching reference data.

      Select the Enable automatic tax calculation check box in the Tax Attributes section if you want to use the Tax application to automatically calculate the tax.

   3. On the orders tab, search for and select the required orders. Then, click Add to associate the orders to the charge lines.

      When the application has associated the orders to the trade operation charge lines, the Charge Line Status displays the Ready for Allocation status.

   4. From the More Actions menu in the trade operation header area, 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 or transfer order shipments referenced in the trade operation. Create and submit the receipt in the Receiving application.

   5. Select the charge line and click Allocate Charges. The Charge line status is updated to Successfully allocated. On the Estimates and Actuals tab, the allocated charge amount is displayed for each order. This is the estimated charge amount that's anticipated to be applied when the items in a purchase order or transfer order are fully received.

5. Navigate to the Landed Cost Run Control page.

   1. Select and run the Prepare Invoice Data process.

   2. Select and run the Associate Invoices to Trade Operation Charges process.

6. Navigate to the Charge Invoice Associations page and select the required invoice. 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.

7. Navigate to the Trade Operations page. Search for and open the required trade operation for editing. The Charge Line Status will be set to Requires Reallocation.

8. Click the Allocate Charges button. The actual charges are added to the trade operation.