Import Tracking and Landed Cost Processing An Enhancement For AS/400 DMAS from  Copyright I/O International, 2001, 2005, 2008, 2012 Skip Intro Version 2.0

2 Landed Cost The I/O Import Tracking and Landed Cost Processing Enhancement (Landed Cost) provides the ability to prorate shipping and import costs to each item within the shipment. 4 Prorate and distribute based on –Weight –Volume –Amount

3 Landed Cost 4 Distribute up to 11 different costs plus duty 4 Allows for –Multiple P/Os in a single shipment –Shipment for a single P/O –Multiple shipments for a single P/O 4 Provides capability for multiple foreign currencies

4 DMAS Interfaces 4 Direct interface from Work with Purchase Orders to Landed Cost entry 4 Posting of receipts in purchasing –Adjusts receiving costs upward with landed cost distribution –Calculates new average costs including landed cost distribution –Updates inventory with new average and last costs

5 Landed Cost Database 4 Currency Exchange file – Supports entry of import costs in multiple foreign currencies 4 Duty Rate file – Provides a vehicle to define multiple duty class rates 4 Imported Item file – Defines each item and vendor combination for items that will be processed through landed cost function 4 Receiver file – Tracks individual shipments to be received against purchase orders

6 Landed Cost Details Duty Class File Currency Exchange File Work with P/O Interface Import Item File Landed Cost Options Multiple P/O Shipment Single P/O Shipment Inventory Control Landed Cost Entry Support Database DMAS Interfaces (click button to view detail) Back to Title Page

7 Landed Cost System Options 4 A tool to define how landed costs are to be distributed at a system level 4 Distribution may be based on –Weight –Volume –Amount

8 Landed Cost System Options 4 Standard costs to distribute –Overseas freight –Insurance –Commissions –Customs broker –Terminal charge –Inland freight –Plus 5 additional user defined costs

9 Landed Cost System Options The user defines distribution defaults for his landed cost system Each cost may be distributed via one of the three methods of Weight, Volume, or Amount The user may define up to 5 additional costs. End of topic

10 Duty 4 Duty is defined via a Duty master file 4 Any number of duty classes may be established 4 For each duty class, the user enters –Duty class description –Duty percentage

11 Duty Existing duty records may be maintained by using an option of “2”. Existing duty class records are displayed New duty records may be added by pressing F6

12 Duty Each duty class record is given a description and a duty percentage. Each import item that is subject to duty is assigned a duty class code End of topic

13 Currency Exchange 4 Currency exchange is optional 4 If used, the user must keep the currency exchange file up to date 4 Any number of currencies may be defined 4 If currency exchange is used, each import item is assigned a currency exchange code 4 Each currency record is identified with a unique code and is given an exchange percentage

14 Currency Exchange Existing currency records may be maintained by using an option of “2”. Existing currency exchange rate records are displayed New currency records may be added by pressing F6

15 Currency Exchange The exchange percentage defines the exchange rate between the foreign currency and the base currency (normally US dollars) Each currency exchange record has an exchange percentage End of topic

16 Import Item Master 4 Every item that is subject to the landed cost function (including currency exchange) must be defined in the import item file 4 An item purchased from multiple vendors, must be defined for each vendor 4 A duty class code must be provided if the item is subject to duty 4 A currency code must be provided if the costs of the imported items are in a currency other than the base currency

17 Import Item Master 4 A number of selection options are provided to aid the user in finding items already in the import item file 4 An option is provided with which the user may have all vendor/item records for a given vendor automatically copied to the import item file

18 Import Item Master Existing import item records may be maintained by using an option of “2”. Existing import item records are displayed New import item records may be added by pressing F6 Selection fields are provided, allowing the user to limit the listed items to only those of interest

19 Import Item Master All items may not necessarily have a duty class code or a currency code Each import item record defines a particular item from a specific vendor End of topic All records for an entire vendor may be added by pressing F16

20 The Shipment 4 A shipment may be for –A single purchase order –Multiple purchase orders

21 Master Shipment 4 Supports multiple purchase orders in a single shipment 4 Use the Work with Landed Cost Shipments job to create shipment master records 4 A shipment master must be created for Multiple P/O shipments 4 Then a detail record is created for every P/O within the shipment

22 Shipment Master Record Shipment information and shipment total cost data is displayed for each shipment The Work with Landed Cost Shipments job lists all existing shipments The shipment identifier To create a new shipment record, press F6

23 Shipment Master Record General shipment information A shipment master includes shipment information as well as import cost data The shipment identifier Import cost data

24 Identify P/Os 4 Each purchase order within the shipment must be identified 4 Each P/O within the shipment is then ‘assigned’ to the shipment master

25 Assign P/Os to Master Shipment The user keys the “A” option adjacent to the shipment to which P/Os are to be assigned To assign P/Os to a shipment, the “A” option is used on the shipment master

26 Assign P/Os to Master Shipment This screen is very similar to the P/O selection screen within DMAS purchasing A purchase order selection screen is then displayed, allowing the user a number of ways to find the desired P/Os The user should use as many options as possible to limit the number of P/Os about to be listed from which to make the selections

27 Assign P/Os to Master Shipment The shipment that the user is working with is displayed on line 2. A list of purchase orders that met the selection criteria is then displayed P/Os to be assigned to this shipment are assigned by keying a ‘1’ adjacent to each desired P/O

28 Assign P/Os to Master Shipment Each P/O assigned to a master shipment is identified with the Shipment number. After the P/O assignment, a list of all P/Os assigned to this shipment is displayed End of topic

29 Single P/O per Shipment 4 A shipment master is NOT required for single P/O shipments 4 Only a single shipment detail record is required

30 Single P/O per Shipment By using the “W” option for shipment “*NONE”, the user can view all single P/O shipments All P/Os not assigned to a shipment are included under the shipment number of “*NONE”

31 Single P/O per Shipment The user may then work with any one of the single shipment P/Os All landed cost P/Os NOT assigned to a shipment are listed under the shipment named *NONE To enter landed cost data for a listed P/O, the user uses the “2” option

32 Single P/O per Shipment The user enters the shipment and cost information for this single P/O shipment Shipment and cost data is then entered End of topic The P/O information is displayed at the top of the screen NOTE: the value entered for each cost will be prorated based on how that cost is defined in the Landed Cost Options

33 Interface From Purchasing 4 A direct interface to the Landed Cost function is available in Work with Purchase Orders 4 A new option of AS assigns a P/O to an existing shipment master 4 A new option of LC takes the user directly to Landed Cost entry 4 A new option of LP prints the Landed Cost Report

34 Interface From Purchasing Working with Landed Costs within a (click button to view detail) Back to Landed Cost Details Single P/O Shipment Multiple P/O Shipment

35 Multiple P/O Shipment The user enters R adjacent to the purchase order to be received Receiving landed cost P/Os is the same process as when receiving a standard purchase order

36 Multiple P/O Shipment The user enters normal purchase order receiving information The Receive Purchase Order header is displayed as with a standard purchase order The entry of a Receipt log number is optional The line items are received as with a standard P/O. When ending the receiving of a P/O, the receiving End Order screen is displayed

37 Multiple P/O Shipment NOTE: When ending the receiving process for a landed cost P/O or a P/O with currency exchange, DO NOT POST the P/O from the displayed End Order screen. The Receive End Order screen is displayed as with a standard purchase order To end the receiving of the P/O, simply press the Enter key

38 Multiple P/O Shipment To assign a P/O to a shipment, the user enters AS adjacent to the desired purchase orders and presses the Enter key The user can now assign the P/O to a shipment and/or enter landed cost data directly from the Work with Purchase Orders function A highlighted P/O number indicates that the LC option has already been performed on that particular P/O

39 Multiple P/O Shipment The Shipment Lookup window is then displayed The user selects the desired shipment master by keying a 1 adjacent to the desired shipment Note that new shipment masters may be entered from this window by using F6

40 Multiple P/O Shipment The designated P/Os are now assigned to the selected shipment For P/Os assigned to a multiple P/O shipment, it is only necessary to use the LC if import costs are to be entered that are unique to a particular P/O. The two designated P/Os are now displayed with their P/O numbers highlighted, signifying that they are assigned to a shipment

41 Multiple P/O Shipment If the LC option is used on a P/O after being assigned to a shipment, the P/O Landed Cost Detail screen is displayed If import costs within the shipment have not yet been prorated to assigned P/Os, the user can cause the ‘blow down’ to occur on demand Import costs prorated to this P/O are displayed here The P/O information is displayed at the top of the screen

42 Multiple P/O Shipment The import cost ‘blow down’ may be initiated from the Work with Landed Cost Shipments screen After the blow down, the user may see the results for a specific P/O by using the LC option on the Work with Purchase Orders screen. The user may cause the import cost ‘blow down’ to be initiated for a shipment by using the ‘B’ option

43 Multiple P/O Shipment After the blow down has been run, the prorated import costs may be displayed for each P/O It is only necessary to run the ‘blow down’ in order to view the anticipated results prior to posting. The posting job will always blow down import costs before the P/Os are posted The import costs that were prorated to a particular P/O are now displayed on the P/O Landed Cost Detail screen

44 Multiple P/O Shipment All P/O’s within the shipment may then be posted by using the menu option “Post receipts by landed cost shipment” The user enters the shipment number to be posted Multiple shipments may be posted by entering an ending shipment number End of topic

45 Single P/O Shipment The user enters R adjacent to the purchase order to be received Receiving landed cost P/Os is the same process as when receiving a standard purchase order

46 Single P/O Shipment The user enters normal purchase order receiving information The Receive Purchase Order header is displayed as with a standard purchase order The entry of a Receipt log number is optional The line items are received as with a standard P/O. When ending the receiving of a P/O, the receiving End Order screen is displayed

47 Single P/O Shipment NOTE: When ending the receiving process for a landed cost P/O or a P/O with currency exchange, DO NOT POST the P/O from the displayed End Order screen. The Receive End Order screen is displayed as with a standard purchase order To end the receiving of the P/O, simply press the Enter key

48 Single P/O Shipment To enter landed cost data, the user enters LC adjacent to the desired purchase order and presses the Enter key The user can now enter landed cost data directly from the Work with Purchase Orders function A highlighted P/O number indicates that the LC option has already been performed on that particular P/O

49 Single P/O Shipment The P/O Landed Cost Detail screen is then displayed If the P/O is subject to currency conversion, the LC option must still be used even though it may not be necessary to key any data on the above screen. The user enters the shipment and cost information for this single P/O shipment The P/O information is displayed at the top of the screen

50 Single P/O Shipment The P/O may then be posted like any standard purchase order To post the receipts of a single P/O, use the PR option NOTE: Landed cost P/Os and P/Os subject to currency conversion may be posted ONLY AFTER the LC option has been performed on the P/O End of topic

51 Interface to Inventory Control 4 Importing and freight costs are prorated to items in shipment –For single P/O shipments, to all items within the received P/O –For multiple P/O shipments, to ALL item within ALL P/Os in the shipment 4 The landed cost function adjusts the receipt costs upward

52 Interface to Inventory Control 4 A new average cost and last cost is calculated for each item 4 For P/Os subject to currency conversion –Item costs (in a foreign currency) are converted to US dollars –All import costs are entered in US dollars and NOT converted 4 The receipt posting function updates the costs in inventory End of topic

53 End of Presentation For more information about the Landed Cost Enhancement for AS/400 DMAS, call I/O International, Inc. At (914) Thank you for your interest Suite 2002 Pinewood Business Center Somers, New York 10589

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