Create Estimated Landed Costs

You can use a trade operation to estimate landed cost charges associated with purchase order and transfer order receipts of material. You can create a trade operation for an upcoming shipment to capture the landed cost charges incurred for that shipment. Estimated landed costs provide an upfront estimate for budgeting, pricing, and initial inventory valuation, before the receipts of material.

To create estimated landed costs:

In the Receipt Accounting work area, select Landed Cost Run Control from Quick actions.
Query for and run the Prepare Material Purchase Order Data process.

This process updates the list of approved purchase orders that can be selected for landed costs.
In the Receipt Accounting work page, select Trade Operations from the Quick actions menu.
From the More Actions menu, select Create Trade Operation from Template.

Search for the required template. Enter the trade operation name and save the trade operation.

You can create trade operations from scratch, by using a template, or by using the Quick Create option.
Optionally, enable the Tentative option for any charge lines that you don't want to be included in receipt accounting distributions. This option is only applicable for estimate costs.

On the Charges tab of the newly created trade operation, if there are any predefined charge lines from the template, they will show the charge line status as Pending association.
On the orders tab, click the Add icon to associate orders to the trade operation.

The name of the tab depends on the transaction type and allocation quantity type of the trade operation. For example, for a PO receipt transaction type with the allocation quantity type as Purchase order schedule quantity, the order tab name is Purchase Order Schedules.
Search for and select the required orders.
Click Add to associate the selected orders to the trade operation.

When the orders have been associated to the trade operation charge lines, on the Charges tab the charge line status changes to Ready for allocation.
From the More Actions menu on the trade operation header section, select Update Status to set the status of the trade operation.
From the Status list, select Open and then click Update to set the status of the trade operation as 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 orders referenced in the trade operation.

Create and submit the receipt in the Receiving application.
On the Charges tab of the trade operation, select the charge lines.
Click Allocate Charges.

The charge line status gets updated, and a message appears that the trade operation charge has been allocated.

On the Estimates and Actuals tab, the allocated charge amount is displayed for each order in the Estimated Amount column. 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.
From the Navigator menu, select Tools, then Scheduled Processes. Then, run the Transfer Transactions from Receiving to Costing process.
In the Receipt Accounting work area, navigate to the Landed Cost Run Control page. Select the Allocate Landed Cost Charges process and set the Apply Charges to Receipts option to Yes in the Define Parameters region. Submit the process.
(Optional). In the Receipt Accounting work area, select Create Receipt Accounting Distributions from the Quick actions menu.
Select Item Landed Costs from the Quick actions menu. Select the PO number and receipt. The item landed costs displayed now include the material and landed cost charges.

Note:

To create a charge from a service PO, you must select the charge basis as Aggregate and select Service PO. The PO Number lists only the Fixed Price Services type of POs. Specify the PO Number, Service PO Number, and Service PO Schedule.

After creating the charge from a service PO, the charge line is automatically associated with the invoice line without the need for charge references because the PO number becomes the reference for charge association.