Formula Expressions

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

A formula expression performs a wide range of attribute value calculations for a business object, using basic mathematical operations (addition, subtraction, multiplication, and division). You can use this component to define various costs and taxes in Global Trade Management.

Following are some examples of formula expressions:

• Insurance Charge = 5% of Incoterms Value (Value Qualifier)
• Freight Charge = $10 per each SU (Quantity Qualifier)
• Domestic Freight Charge = $2 per Weight (Quantity Qualifier)
• Total Cost = Unit Price * Quantity
• Cost of Goods = Incoterms Value – Freight Charge – Insurance Charge + Assist
• VAT = 16% of (Incoterms + Duty + Processing Free)

To calculate landed cost, you will need to calculate multiple values and some of them can be derived using formulas. Formulas are required to:

• Calculate customs duty base amount from a commercial invoice and other cost values. Example: FOB VALUE = INVOICE VALUE – INTERNATIONAL FREIGHT – INSURANCE
• Calculate tax base amounts from a commercial invoice value and other cost values. Example: TAXABLE FREIGHT = 70% OF INTERNATIONAL FREIGHT
• Calculate landed cost from a commercial invoice value and other cost values. Example: LANDED COST = INVOICE VALUE + BANK FREE + INSURANCE + BROKERAGE FREE + DOMESTIC INLAND FREIGHT + VAT

Identification

Use this section to add basic information about a formula expression.

Adding a Formula Expression:

1. Enter a unique identifier in the Expression ID field. You will use this ID when you refer to this formula expression on other pages.
2. Enter the name of the formula expression in the Expression Name field.
3. If desired, enter additional information about the formula expression in the Description field.
4. Select a domain in which this formula expression will be active from the Domain Name list.
5. Select the type of business object to which you want to assign this formula expression from the Object Type list.
6. Select an option from the Usage Type list. The options are:

1. • Formula: If used as a formula, this formula expression will be independent and can be configured to be executed as a separate agent action or web action to calculate costs/taxes.
     For example, you can use the formula expression
     "Cost of Goods = Incoterms Value – Freight Charge – Insurance Charge + Assist"
     independently to calculate charges/taxes.
   • Expression: If used as an expression, this formula expression will only evaluate the expression; you will need to define where to use the evaluated value as part of rule definition. For example, if the formula expression
     "Cost of Goods = Incoterms Value – Freight Charge – Insurance Charge + Assist"
     is used only as an expression, the part "Incoterms Value – Freight Charge – Insurance Charge + Assist" will be evaluated. You will have to specify where to use the value of this expression to calculate costs/taxes.

Expression Identifiers

Use this section to add as many attribute qualifiers as you desire to a formula expression.

Adding an Identifier:

1. Enter a name for the variable component in the Identifier field.
2. Select the type of business object component from the Object Type drop-down list.
3. Select an attribute related to the business object from the Object Attribute drop-down list.

Note: The options available for selection in this drop-down list are dependent on the object type that you selected in the previous step.

4. Enter a qualifier related to the object attribute in the Attribute Qualifier field.
5. Click Save. You can add as many attribute qualifiers as you need. Remember to click Save after entering each qualifier.

Expression

Use this section to define an expression to calculate costs or taxes associated with a business object.

For example, you can define a formula like C = A + B; or you can define an expression like A + B, where A, B, and C are the identifiers.

You can use formula expressions to perform the following:

• Assign a numeric/currency/quantity constant value to an identifier without using any operator pattern to create simple formulas. Example, A = 10 or A = B or A = CURRENCY(40,'USD').
• Specify a currency constant in a formula expression to calculate a financial amount and currency type using a function CURRENCY(FINANCIALAMOUNT,'CURRENCY'). Example, A = B + CURRENCY(55,'EUR').
• Convert the calculated value of a formula expression to a required currency using a function CONVERTCURRENCY(formulaexpression,'CURRENCY'). For example, A = CONVERTCURRENCY(A+B+CURRENCY(40,'USD'),'EUR').
• Specify a quantity constant in the formula to calculate a quantity amount and unit of measure (UOM) using a function QUANTITY(QUANTITY VALUE,'QUANTITY UOM'). For example, A = B + QUANTITY(20,'KG').
• Convert the calculated value of a formula expression to a required UOM using a function CONVERTQUANTITY(formulaexpression,'QUANTITY UOM'). For example, A = CONVERTQUANTITY(A+B+QUANTITY(40,'LB'),'KG').   

Adding an Expression:

1. Enter the overall formula expression of calculation in the Formula Expression field.
2. Click Verify to check whether the formula expression you entered is correct.
3. Click Clear to remove any expression previously entered and to re-enter a new formula expression.
4. Click Finished.

Copy Formula Expression

This action allows you to copy details from a formula expression when creating a new one.

Copying a Formula Expression:

1. Select a record from the search results page.
2. Click Copy Formula Expression.
3. Enter an Expression ID and a Description for the new formula expression.
4. Click Finished.