1. Implementation Guide
  2. Estimated Landed Cost

7 Estimated Landed Cost

If you are using estimated landed cost functionality in Merchandising, then there are a few additional components that are seeded into the solution that you will need to be aware of and in some cases update. These include cost components, CVBs, and cost zone groups.

Note: For additional information on these topics, see also the Oracle Retail Trade Management white paper found on My Oracle Support under ID 1585843.1.

Cost Components

Cost components are another piece of seeded data in Merchandising that is loaded if you are using estimated landed cost functionality. These seeded cost components must remain in the system and should not be updated as they are used for specific functionality. These components are:

  • Total Expense (TEXP)

  • Total Expense Country (TEXPC)

  • Total Expense Zone (TEXPZ)

  • Order Cost (ORDCST)

  • Unit Cost (UNCST)

It is expected that you will also add cost components related to specific expenses and assessments for your business. For more information on adding cost components, see the "Cost Components" section in the Oracle Retail Merchandising Foundation Data User Guide.

Computational Value Bases

Computational value bases (CVBs) are also loaded when using estimated landed cost, as part of the base installation that relate to the cost components described above. These should not be modified as they are used for very specific functions within the landed cost calculations.

  • TEXPC - Total Expense Country

  • TEXPZ - Total Expense Zone

  • TEXP - Total Expense

Additional CVBs can be added as needed to support your business. For more information on creating new CVBs, please see the Oracle Retail Merchandising Foundation Data User Guide section on Computational Value Bases.

Cost Zone Groups

When using estimated landed cost functionality in Merchandising (see Functional system options above), then all items will need to be associated with a cost zone group. Zone groups and zones are used to manage expenses associated with purchasing product and moving it from a lading port to your locations. Stores and warehouses that incur similar in-country expenses can be grouped into a zone for easier management of the estimated costs.

As part of the initial data seeding, Merchandising will create two zone groups:

  • 1000 - Location Zone Group

  • 2000 - Geographic Cost Zones

These can be updated to descriptions that better suit your business in the Cost Zones page in Merchandising. For more information on this update, see the Oracle Retail Merchandising Foundation Data User Guide section Manage Cost Zones. Once you begin creating stores and warehouses, you can then group the appropriate stores and warehouses together in your desired zone groupings.