1 What standard Landed Cost Management reporting covers
2 Five practical challenges
3 Six new Blitz Report landed cost reports
4 Notes
Introduction
With the tariff increases of the last two years, duty is no longer a rounding item in the cost of imported goods. Finance and supply chain teams now need to answer questions their ERP reporting was never designed for: how much duty did we actually pay per tariff code and country of origin, which freight and customs invoices have not arrived yet, and what will the new rates cost on goods already on order?
Oracle E-Business Suite customers using Oracle Landed Cost Management (LCM) hold most of this data, as estimated and actual charges, allocations to receipt lines, and cost adjustments sent to inventory valuation. Getting it out in a usable form is the hard part.
1 What standard Landed Cost Management reporting covers
LCM ships three XML Publisher reports: the Landed Cost Detail Report, the Landed Cost Summary Report, and the Unaccounted Landed Costs For Full Returns Report. They list the landed cost of a shipment by component, but none of them compares the estimated with the actual landed cost, or shows which charges are still waiting for an invoice.
That comparison is available on screen only, one shipment at a time in the Shipment Workbench, or in the LCM Command Center, which requires release 12.2 and Enterprise Command Center. In the Oracle support community, customers ask for the SQL behind the LCM reports, and Oracle Support lists a performance problem of the Landed Cost Detail Report on release 12.2.9.
2 Five practical challenges
- No tariff code field. Oracle EBS has no standard field for the Harmonized Tariff Schedule (HTS) code of an item. Most companies hold it in an item category set, some in a descriptive flexfield or the tax fiscal classification, so any duty analysis by tariff code has to be told where to find it.
- Duty is allocated, not recorded per customs entry line. LCM spreads a charge over the lines of a shipment by the charge type’s allocation basis (value, quantity, weight or volume). When the broker’s actual duty invoice is matched, the actual amount is reallocated the same way, so the duty per receipt line is an allocation rather than the duty assessed on that line.
- Invoices that never reach the shipment. A freight or duty invoice matched in Payables travels through the LCM matches interface before it updates the shipment. A line stuck or failed in that interface leaves the shipment on its estimate, although the invoice exists, and receipts can likewise hang in the receiving interface with status LC Pending.
- Cost adjustments nobody can explain. Every change of the unit landed cost creates an adjustment in Cost Management, including changes made to an estimate after the goods were received. Accounting then finds landed cost adjustment events without any actual invoice behind them, and the standard answer is to open the unit landed cost history of each shipment line in the Shipment Workbench.
- Accrual exposure for missing charge invoices. Estimated charges absorbed into inventory at receipt are a liability until the carrier’s or broker’s invoice arrives. EBS has no screen that lists them by charging party and age.
3 Six new Blitz Report landed cost reports
We have added six reports to the Blitz Report library that address these points directly from the LCM tables, across all shipments and organizations at once. Each report links to an example output file.
| Report | What it answers | Example |
|---|---|---|
| INL Landed Cost Estimated vs Actual | Estimated against current landed cost per shipment line and component (item price, each charge type, each tax), with the matched AP amount and invoice numbers. | xlsx |
| INL Pending Actual Charges | Estimated charges without a matched invoice, by charging party and age, including invoices stuck or failed in the LCM matches interface. | xlsx |
| INL Duty and Tariff Analysis | Duty, other charges and taxes per receipt line, with tariff code, country of origin and supplier, duty rate and landed cost uplift. | xlsx |
| INL Tariff Exposure on Open POs | Duty on purchase orders not received yet, from the LCM PO simulation or the historical rate of the same item and country, with an additional tariff percentage for what-if scenarios. | xlsx |
| INL Landed Unit Cost Trend | Unit landed cost per item across shipments, split into item cost, charges and taxes, with the change against the previous shipment. | xlsx |
| INL Landed Cost Adjustments | Every landed cost adjustment sent to Cost Management with the prior and new unit landed cost and the receiving accounting it generated. | xlsx |
The tariff code is read from an item category set selected on the run screen, and the charge types that count as duty are a parameter as well, so the reports adapt to how each company has set up its tariff codes and charges.
4 Notes
- The reports require Oracle Landed Cost Management on EBS release 12.1.3 or 12.2.
- All amounts are in functional currency, as allocated by LCM, so the shipment totals reconcile to the landed cost the receipts were valued at.
- Like every Blitz Report, they run from the EBS run screen or directly in Excel, and can be scheduled and emailed, for example a weekly list of pending freight and duty invoices to the accounts payable team.
If you would like to see the reports on your own landed cost data, please contact us.