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There Was No ELC When Multiple HTS Is Applied To An Item With Different Country Of Manufacture (Doc ID 2706182.1)

Last updated on SEPTEMBER 18, 2020

Applies to:

Oracle Retail Merchandising Foundation Cloud Service - Version 19.0 and later
Information in this document applies to any platform.

Goal

There was no Estimated Landed Cost(ELC) when multiple Harmonized Tariff Schedule (HTS) is applied to an items with different Country of Manufacture.

Prerequisite:

RTM_UNIT_OPTIONS.HTS_TRACKING_LEVEL = M (Country of Manufacture)

Scenario:

User have items sourced from The Orient - tracked under a single SKU, which is assigned to a product containing multiple parts within it.
  - A single SKU represents a product containing a Pencil, Notebook, Eraser, Compass, Protractor, Sharpener.
  - This product is PURCHASED and SOLD as ONE SKU , but the parts within them (i.e, Pencil, Notebook, Eraser, etc) are NEVER sold as separate items.
  - This SKU is sourced from a China (through a supplier whose Item-Supplier-Country = CN)
  - Since this SKU contains multiple parts - they attract multiple duties, where, one HTS can apply to the Pencil, another HTS to the Notebook, a 3rd HTS to the eraser, etc, etc.
  - One of the parts within that SKU, i.e., "Pencil" is actually "manufactured" in Vietnam, while the others (notebook, eraser, compass, etc) are all manufactured in China.

So, given that this SKU is sourced from China --> (Item Supplier Country = CN)  and given that this SKU contains products that are manufactured elsewhere (Vietnam) --> (Country of Manufacture = CN and VN) (CN = Primary Country)
Create an item (SKU) for the above product:

  1. Added CN (China) as the Country of Sourcing (Item Supplier Countries screen).
  2. Added CN (Prim Country Ind = Y) and VN (Vietnam) as Countries of Manufacture.
  3. Ensured that Country-level Expenses were defined properly (and ORDCST was included as part of expenses).
  4. Navigate to HTS screen:
  4a. Added Five (5) HTS codes to this SKU (using Country of Sourcing = CN) (one for each part: Notebook, Eraser, Compass, Protractor, Sharpener)
  4b. Added One (1) more HTS to this SKU (using Country of Sourcing = VN) (for pencil)
  5. After calculating HTS duty, Only the 5 HTS for CoS = CN had been applied to Item-ELC.
  6. While HTS for CoS = VN showed duty value but was NOT included in Item-ELC

Why was the Duty for VN not part of ELC?
 

Solution

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In this Document
Goal
Solution
References


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