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EBS: LCM How To Allocated Charges To Material Overhead Component Of Item Cost? (Doc ID 1192143.1)

Last updated on DECEMBER 13, 2021

Applies to:

Oracle Landed Cost Management - Version 12.1.2 and later
Information in this document applies to any platform.


When using Landed Cost Management to include all inventory items costs based on additional receipt charges like freight, insurance, etc.

Questions and Answers

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In this Document
Questions and Answers
 --- What is being announced? ---
 Please advise what inventory costing setup is necessary to allocate the shipment charges to the Material Overhead component. Currently item cost is build only of Material component, but some Customers need to separate the material cost and the other expenses bearded during receipt of the item.
 --- What do you need to do? ---
 In LCM module you can't separate the material cost and the other burden that being bearded during receipt of the item since the system will updated the current cost of the item directly when you do the receiving in LCM workbench and this was purpose from this application since most of customers requesting that, in LCM workbench you will see the additional lines like freight, insurance, etc
 and in case you want to use a separate line or separate cost element in the tables you can use the principle of Material Overhead as it was described in costing user guide but you will miss the function of updating the current cost with the actual cost when receiving the actual invoices from suppliers of those freights

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