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Ledger Interface Setup (LIS) |
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Sun Documentation -
Purchase Order Management
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Page 4 of 5
Value Label
Value Labels are required if the Ledger Interface is transferring transaction values into Financials. This is indicated by a Ledger Interface Value Type setting of Transaction Values. Up to four transaction values can be transferred. Each value label identifies a value on the Order Fulfilment transaction being processed that is to be transferred to the appropriate Financials ledger transaction value.
Select the value label that identifies the transaction values in use within your business unit: base, transaction, reporting/second base and memo.
You must take care to assign the correct Order Fulfilment transaction values to the correct ledger transaction values. For example, to assign the base currency value on the purchase transaction to the base currency value field on the ledger transaction.
You would normally expect to post Order Fulfilment currency values to the same currency value type in the Financials and post non-currency values to the Memo value in Financials. In exceptional circumstances you may wish to override this, for example, when posting to memo accounts.
Value labels are defined using Value Labels Setup (VLS).
Note: Value labels cannot be entered if the Ledger Interface Value Type is set to Inventory Costs.
For more information on the Financials transaction values see Understanding the Transaction Currency Values.
Value Label Value Type
The Value Type determines the format of each of the four transaction or cost values being transferred. This is required to translate the value into the format required by Financials. You must take care to assign the appropriate value type to each value being transferred.
The valid options are:
- Without Units - a number without a Unit of Measure attached to it. For example, a percentage.
- With Units - a number with a Unit of Measure attached to it. For example, a quantity.
- Corresponds to Base Currency - a number that is the base currency.
- Corresponds to Transaction Currency - a number that is the transaction currency.
- Corresponds to Reporting or 2nd Base Currency - a number that is the reporting or 2nd base currency.
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Cost Indicator
Order Fulfillment calculates costs using different costing methods including standard costing, weighted average costing, and latest or actual costing. It also allows user defined costing methods to be defined.
Ledger Interface can transfer values of any of these costing methods. For the chosen costing method, you can transfer either the unit price or a cost value. This choice of costing method and type of value is determined by the cost indicator you choose.
If you select a Unit Cost indicator, the unit cost for the item is transferred, that is, the cost for one item only. For example, if you select Weighted Average Unit Cost as the cost indicator, the weighted average cost for one item is transferred as the value.
If you select either an Extended Cost or Line Cost indicator, a cost value is transferred.
- Line Costs - these are calculated and stored against the issues and receipts when the transaction takes place. The line cost is the total cost of the transaction quantity.
- Extended Costs - these are calculated by multiplying the transaction quantity by a unit cost (the unit cost is the cost of a single item). Unit costs are calculated and stored against the issues and receipts when the transaction takes place (line cost divided by quantity). Unit costs are also stored against the item. When defining the Ledger Interface you can choose which unit cost is used to calculate the Extended Cost.
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You should consider the following when setting these indicators:
- The costs on the issue or receipt (line cost and unit cost) are those which are effective at the time of the transaction, or were specific to that transaction.
- Extended costs are calculated using the cost which is effective at the time of the posting. If this is the standard or weighted average cost from the item, this may have changed since the transaction took place.
- The process of calculating extended costs is: (line costs divided by transaction quantity) multiplied by the same transaction quantity. This may result in rounding errors where items have a small unit cost.
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If an organization is dealing with low value goods and latest costs, you should consider using this figure as it is more accurate. Line costs take the exact value from the transaction. If extended costs are used, rounding errors may have been introduced when calculating the unit cost.
Cost Source
Select Item to use the latest unit cost held for the item in the calculations. Select Inventory to use the unit cost held on the inventory issue or receipt transactions in the cost calculations.
Tip: This choice may depend on when the cost values on the Item are updated.
If a Unit Cost Indicator is selected, the Cost Source must be Item.
Cost Type Code
The Cost Type Code identifies the type of cost to use on this Ledger Interface Line. This is only required if you wish to split the total cost across different Financials transactions. For example, if you have defined cost types for Materials, Labour and Overhead costs you might want to post these costs individually to separate Financials accounts. If no cost type code is defined, then all cost types are summed together.
User Defined Cost Def'n Code
The user defined costing method to be used. This is required if you select a User Defined Cost Indicator, for example, UD Extended Cost. See Setting Up User Defined Costs.
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Purchase Order Management 
