freigt cost to charge conversion

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COST TO CHARGE CONVERSION

TERMINOLOGY

Freight Costs are actual expenses incurred by the shipper while transporting aShipment.

Freight charge represents the amount passed to the customer receiving the shipment.

Freight Cost Types are lookups. Additional Freight Cost Types lookups can be created by navigating to: Shipping > Setup > Lookups.

Freight Cost Names - by navigating to Shipping > Setup > Freight > Define Freight Cost Types.

*Freight Cost Types can have many Freight Cost names, but one Freight Cost name can be assigned to a single Freight Cost Type.

NOTES:

1) Applying charges and capturing freight costs is now divided between Order Management and Shipping Execution. Shipping Execution allows users to input costs incurred on the shipment of goods using the Shipping Transaction window or through the Shipping Open Interface. Once the ship confirmation process completes, any costs input are transferred to Order Management for storing on the order, and they can be converted to charges based on rules the user specifies.

Order Management applies Freight or other Charges to the customer invoice whereas Shipping captures all Freight Costs incurred on a shipment of goods.

2) Freight costs captured at Shipping are not invoiced to the customer.

3) The Freight Cost Types that are seeded include: freight cost, handling,Insurance, administrative fees and export duty.

4) All Charges are invoiced. Line level charges are invoiced with the line they areattached to. Header level charges are invoiced with the first line that is invoiced for that order. Header charges that are added after some lines have been invoiced willbe invoiced with the next line that is interfaced to Invoicing. Charges are sent individually to Receivables as invoice header level freight charges, althoughAccounts Receivable summarizes them into one freight line for the Invoice.

5) The naming convention you use is critical for using cost to charge conversion. Youenter costs in the Shipping Transaction window using the Freight Cost Names defined in Shipping Execution, each of which belongs to a particular Freight Cost Type. It is the Freight Cost Type that you need to use as the qualifier for the ChargeModifier line, however, not the Name. In Order Management, you never really see the Freight Cost Names except at Ship Confirm. To keep things simple, you might want to just have one Freight Cost Name for each Freight Cost Type, and have it be the same name.


6) Included items? Is the line you're trying to get the charges onto an included item in a PTO kit or model? If so, you won't be able to get the charges to convert easily. The reason for this is that the costs come to Order Management from Shipping as line level price adjustments, and the ‘SHIP’ pricing event triggers the Freight and Special Charges modifier to be applied; since included items are not priced, this doesn't happen. Your only recourse to getting a cost-to-charge conversion working on an included item is to use an Order level modifier, and it should be within a pricing phase which is associated with the ‘SHIP’ event. Also, the profile optionOM: Charges for Included Item should be set to Y.

For backordered lines within Included Items, both the profile options OM: Charges for Backorders and OM: Charges for Included Item need to be set to Y to apply any freight charges.

The profile options:

OM: Charging Privilege - If the profile is set to none, the user will only have viewing access to charges and cannot apply manual charges. If set to Full Access, the user can apply manual charges and modify override able charges. If set to Unlimited Access, the user can apply manual charges and even modify non-override able charges.

OM: Charges for Backorders - Set it to YES if you want backordered lines to be assessed charges. The default is NO. This profile option can only be set at the site level.

QP: Blind Discount Option – Set it to Yes to apply a modifier without any qualifiers or product or pricing attributes.

Taxes on charges are not calculated at this time during order entry, even if charges are taxable in the jurisdiction. If it is necessary for charges to be taxed, the user Charges Setup should set the TAX: Invoice Freight as Revenue profile option to Yes and also set up a dummy Freight item in Inventory that is taxable and specify it in the TAX: Inventory Item for Freight profile option. Then OM's Invoicing Integration will send the charges to Receivables Auto invoice as Lines with that Inventory Item on them, rather than as Freight. There the charges can be taxed as required and revenue accounting for the charges using Auto Accounting can be done.

Pro-Rating the CostsIf you enter Costs in ship confirm at the Delivery Level, the costs that transfer back to the lines in Order Management are pro-rated to all the lines of the delivery, basedon weight (if present) or volume (if present) or quantity shipped on each line. Seethe Shipping Execution User's Guide for how to get weight and/or volume onDelivery details.

STEPS FOR COST TO CHARGE CONVERSION:

1) Create Freight Cost TypesShipping > Setup > Lookups.

2) Create Freight Cost Names Shipping > Setup > Freight > Define Freight Cost Types


3) Create a New Pricing context/ and map the sourcing rule to the API – (as set for the seeded attribute FREIGHT - OE_CHARGE_PVT.GET_COST_AMOUNT (‘FREIGHT’) - OEXVCHRB.plsIn this code pass the value which u assign (the cost_type and not cost name) at the Shipping form- Assign Freight costThis method does the FollowingSELECT SUM (ADJUSTED_AMOUNT)

FROM OE_PRICE_ADJUSTMENTS_V WHERE LINE_ID = l_line_rec.line_id AND LIST_LINE_TYPE_CODE = 'COST' --COST not CHARGE AND CHARGE_TYPE_CODE = p_cost_type_code;

Sum as you may assign multiple Cost name with the same cost type

4) Create a Formula using the new Pricing context/attribute defined.

5) Create a Modifier with line level Qualifier – Order - Freight type code = the freight cost type created in step 1.This attribute is mapped to OE_CHARGE_PRIVATE.GET_COST_TYPESThis method does the following-SELECT DISTINCT CHARGE_TYPE_CODE

FROM OE_PRICE_ADJUSTMENTS_VWHERE LINE_ID = p_line_id AND LIST_LINE_TYPE_CODE = 'COST';

6) Create an Order->Book it.

7) Ship the Line- Shipping Transaction Form- Action->Assign Freight Cost

Ensure that you enter the Freight Costs before you Ship Confirm; if you do ship confirm first, then it's too late to add the freight costs. 8) Trouble shooting - If the charge is NOT applied after above setup check the

debug file for below text“Error converting PRA value to number” This means the formula was NOT defined properly, you are missing NVL condition

========================================================================= SOME TROUBLESHOOTING TIPS========================================================================= 1. Review all necessary setup steps as documented in the White Paper, Freight & Special Charges, and Converting Freight Costs into Charges with Basic Pricing. This White Paper can be found in Oracle Metalink. Note: 134046.1. In addition to this, please go through the following Metalink notes: * Cannot Override Order Freight Charges - 386926.1 * SE-FC: Shipping Freight Costs - Troubleshooting - 121295.1 * Order Management Suite Tools/Scripts - 163773.1


* Debugging Freight and Special Charges - 162140.1 * Ability to Setup Freight Charges in Basic Pricing - 139928.1

2. Verify that the three profile options, Profile OM: Charging Privilege,

OM: Charges for Backorders and QP: Blind Discount Option, are set appropriately?

3. Why are the freight charges being passed to AR at the header level?

In R11i Order Management (OM) you can add freight charges to the order line at order entry. However these charges are passed to Receivables (AR) as header level freight. The invoice interface populates the individual freight lines in RA_INTERFACE_LINES_ALL, but the link_to_line_attribute columns are not populated, causing Auto invoice to accumulate the charges into a header level charge on the invoice. This is standard functionality. When passing charges through invoicing, OM does not populate the Link_to_line_attribute columns in RA_INTERFACE_LINES_ALL. This causes the charges to be treated as header level charges, and not associated with the lines. 4. I have defined the modifier with some qualifiers. But, the qualifiers are not working?

If you’ve set up some qualifiers for your charges and they do not seem to be working, try running the Pricing Report called ‘Build Sourcing Rules’. Every time you use a new qualifier that you haven’t previously used, you are supposed to run this program. See the Advanced Pricing User’s Guide for information about what this program does. In addition to this, to see the supported qualifier contexts please refer the Metalink note 395242.1. 5. I have defined a Freight Charge modifier, but that charge is not applied by the cost-to-charge conversion. Why does some other charge appear? If you have multiple automatic Freight and Special Charge lists set up, then ONLY ONE charge for each Charge Type and Sub-Type combination will be used by Order Management. Which charge gets applied depends on INCOMPATIBILITY GROUP, PRECEDENCE and PHASE on the modifier. If the INCOMPATIBILITY GROUP is null (not specified) on the modifier, then the largest freight charge for each distinct/unique combination of charge type/sub-type will get applied to the order/line. If the INCOMPATIBILITY GROUP is not null, then within a particular PHASE and a particular INCOMPATIBILITY GROUP, the Pricing Engine will select the freight charge with the highest PRECEDENCE if the INCOMPATIBILITYRESOLVE CODE is set to "Precedence" for the phase. If there is more than one freight charge eligible within a particular INCOMPATIBILITY GROUP in a particular PHASE and the PRECEDENCE is the same or if the INCOMPATIBILITY RESOLVE CODE is set to "Best Price" for the phase, then the smallest charge will get selected. Amongst these selected freight charges, Order Management applies the largest freight charge for each distinct/unique combination of charge type/sub-type to the order/line. 6. My charge does not appear on split line? Verify the profile value for OM: Charges for Backorders. Set it to YES if you want backordered lines to be have charges applied.


7. I have a split a line in multiple deliveries. I do not see the Freight charge prorated to all the deliveries. Please verify whether you have inputted the cost at the Line level in the Shipping Transaction form. By oversight the cost may have been added in the delivery TAB and that will apply the charge only to single delivery. 8. Freight and special charge modifiers are not getting applied on an internal sales order?

This is an intended behavior. Please refer to the Metalink note: 341802.1

freigt cost to charge conversion

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