SYSPRO Landed Cost Tracking Workshop PNG - Lae International Hotel

1. SYSPROLanded Cost Tracking WorkshopPNG - Lae International Hotel David Nigs General Manager – Cache Computers

2. Agenda • Business Perspective • Objectives • Value • Audit Trails and Reporting • Matching SYSPRO to your business • Positioning • Integration • Security

3. Agenda • Setup and Design • Routes • Tariff Codes • Cost Elements • Customs Exchange Rates • Constants • Calculation Codes • Bill of Landed Costs

4. Agenda • Sequence of Steps • Purchase Order • Shipment Reference • Consignment Maintenance • Shipment Tracking • Register LCT Invoice • Shipment Receipt

5. Agenda • Archive Shipments • Calculate New Landed Cost • Setup Options • Sales Order Action Report • Questions

6. Adjust Details LCT - Business Process Flow LCT Setup Notification of Shipment of Goods Elements Shipping Vessel Raise Purchase Order Consignment Details Bill Of Lading Routes Tariff Codes Yes Bulk Print Orders Xchg Rates No Receipt Goods Register Invoices Constants Calculations Register Late Invoices Bill Of Landed Cost Tracking Report New Landed Cost Archive Approve Invoices Payment

7. Business Perspective • Purpose • Establish better estimate • Track goods • Accurately calculate actual cost • Compare actual to estimate during buying cycle • Archive previous shipments and costs

8. Objectives To provide visibility of imported goods while retaining control of all associated costs resulting in accurate landed costs

9. Value of Landed Cost Tracking • Identifies cost elements • Monitors progress of arrival dates • Simplifies receipt of shipments • Compares actual invoice cost with estimates • Selects suppliers based on shipping routes • True landed cost • Traceable stock items • GRN system to trace element costs • Different tariff codes • Preview of reports to screen • Email capabilities

10. Audit Trails and Reporting • Inventory journals - warehouse cost updated • Detailed shipment tracking report • Sales Order Action report • Retains shipments on files

11. Matching LCT to your Business • Multiple alternate shipping routes • Multiple purchase orders into a single shipment • Revised shipment quantities • Customs exchange calculations • Bill of costs for each inventory item • Revised shipping dates • Transfer landed cost print to warehouse cost • LCT Register supplier invoices • Archives shipments once actual costs accumulated

12. Positioning within SYSPRO • Distribution • Integrates • Inventory • Purchase Orders • Accounts Payable • Module dependencies • Purchase Orders, Inventory and Accounts Payable

13. Integration • Inventory • Part Category

14. Integration (Contd.) • Inventory • Supplier • Tariff code • Landed cost tracking required

15. Integration (Contd.) • Inventory • Kit type

16. Integration (Contd.) • Purchase Orders • Foreign currency suppliers • Supplier Stock Code Cross Reference

17. Integration (Contd.) • Accounts Payable • LCT Required • Cross-ref GRN’s

18. Integration (Contd.) • Accounts Payable • Invoice Posting: LCT Register invoice

19. Integration (Contd.) • Sales Orders • Sales Order Action Report

20. Integration (Contd.) • Office Automation • E-mailing of reports • General • Nationalities • Currencies

21. Security • Passwords • A/P Override on expected costs percentage variance • P/order Purge function • P/order Allowing change of P/order details • P/order Allowing the ‘calculate new costs’ program

22. LCT – Setup & Design

23. Routes

24. List of Routes

25. Tariff Codes

26. List of Tariff Codes

27. Overview Tariff Codes • Assign nationality code and country status to suppliers • Assign tariff code to inventory item • Create cost element to track expected and actual duty amounts • Create calculation code that includes one of the duty reserved words • Include duty cost element and duty calculation code in Bill of Landed Costs

28. Cost Elements

29. Cost Elements (Contd.)

30. Apportionment Method - VAL • Apportion the invoice amount to the cost element according to the value of each purchase order line • The value to apportion is determined by the formula: A / B * C • Where A = Merchandise line value (Qty shipped X P/order price - any discount) B = Total merchandise value of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency

31. Apportionment Method - VOL • Apportion the invoice amount to the cost element according to the volume of each purchase order line • The volume to apportion is determined by the formula: A / B * C • Where A = Volume for the line (Qty shipped X unit volume defined against the stock code B = Total volume of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency

32. Apportionment Method - MASS • Apportion the invoice amount to the cost element according to the mass of each purchase order line • The value to apportion is determined by the formula: A / B * C • Where A = Mass for the line (Qty shipped X unit mass defined against the stock code B = Total weight of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency

33. Apportionment Method - QTY • Apportion the invoice amount to the cost element according to the quantity shipped of each purchase order line • The value to apportion is determined by the formula: A / B * C • Where A = Qty shipped for the line B = Total qty shipped of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency

34. Apportionment Method - LINE • Apportion the invoice amount to the cost element according to the number of purchase order lines attached to a given shipment reference • The value to apportion is determined by the formula: A / B * C • Where A = 1 B = Total number of lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency

35. Apportionment Method - ENT • Manually apportion the amount to each purchase order line • You would select this options if you were unable to apportion the cost element by any pre-determined formula. • The system displays all purchase order lines for which the cost element has been used. You must enter the amount to apportion for each line, until you have distributed the full cost element.

36. Apportionment Method - CALC • Apportion the invoice amount according to a calculation method • The value to apportion is determined by the formula: A / B * C • Where A = Value determined by calculation code B = Total value of all lines for which this cost element has been used. C = Value of the cost element entered when posting an invoice. The result is converted automatically into local currency

37. List of Cost Elements

38. Custom Exchange Rates

39. List of Custom Exchange Rates

40. Constant Codes

41. Calculation Codes

42. Calculation Codes

43. Bill of Landed Costs

45. List of Bill of Landed Costs

46. Bill of Landed Costs for Fixed

47. Shipment Tracking & Maintenance

48. Sequence of Steps • Enter Purchase Orders • Receive notification from supplier of shipment • Modify and update shipment tracking details • Post Supplier’s invoices • Receipt shipment • Archive shipment • Approve invoices

49. Purchase Order

50. Shipment Maintenance