Formula Expression Setup

This page is accessed via Master Data > Power Data > Configurations > Formula Expressions.

For more information on configuration, see Formula Expression.

By default, GTM provides a few formulas required to calculate:

1. FOB VALUE from different Incoterms: These formula expressions consider three variables (i.e. identifiers): Invoice Value, International Freight, and Insurance.  The following are two examples of the formula expressions shipped with GTM:
   • FOB VALUE FROM DDP = INVOICE_VALUE – INTERNATIONAL_FREIGHT
   • FOB VALUE FROM CIF = INVOICE_VALUE – INTERNATIONAL_FREIGHT – INSURANCE

Let’s take the example of a formula expression FOB VALUE FROM CIF. Here the Object Type of the formula expression is Transaction Line as the FOB VALUE is calculated at the item line level. The Usage Type is F (i.e. Formula) since the output qualifier is known. There are four expression identifiers used in the formula:

1. • INTL_FREIGHT: It will be found at the line level and the corresponding attribute qualifier (i.e. value qualifier) will be INTERNATIONAL FREIGHT.
   • INSURANCE: It will be found at the line level and the corresponding attribute qualifier (i.e. value qualifier) will be INSURANCE.
   • INVOICE VALUE: It is the purchase price of the item and it will be found at the line level and the corresponding attribute qualifier (i.e. value qualifier) will be INVOICE VALUE.
   • FOB VALUE FROM CIF: It is the base value determined from the other three identifiers.

2. ELC Formula: This formula is used to determine the estimated landed cost irrespective of the Incoterm, considering Invoice and Cost Values, and Customs Duty and Taxes:
   • ESTIMATED LANDED COST = FOB_VALUE+INTL_FREIGHT + INSURANCE + DMSTC_INLAND_FREIGHT + BROKERAGE_FEE + BANK_FEE + DUTY + EXCISE_TAX + OTHER_TAX + HMF + MPF + VAT

Note: The best practice would be to add formula expressions according to your own business needs.