Cost Allocation Using Order Source/Destination Location Instead of Shipment Locations To Calculate Distance When Allocating a Multi-Leg Planned Shipment
Last updated on DECEMBER 03, 2015
Applies to:Oracle Transportation Management - Version 6.3.4 to 6.4.2 [Release 6.3 to 6.4]
Information in this document applies to any platform.
When 'Cost Allocation' is performed on an Order Release in a Multi Stop scenario, while calculating the cost, Direct Distance from Source to Distance is being taken into Account for both the Legs (both Source to Cross dock Leg and Cross dock to Destination leg). Even though the distance between Cross dock Location and Destination is very less, entire distance from Source to Destination is considered while Allocating cost to the Order Release.The expectation is that, in case of the Second Leg the Distance traveled from Cross dock Location to Destination should be considered instead of the Direct Distance from Source to destination.
1. Cost Allocation Method of DIRECTDISTANCE is used to Allocate Shipment Cost to Order Releases.
2. Order Releases are Planned into Multiple Multistop Shipments.
3. Allocate Shipment Cost to Order Release by using the Action
Actions -> Financials -> Settlement -> Allocate Cost
4. Observe the While Allocating the Cost of Each Shipment to the Order Release, Direct Distance between Order Release's Source and Destination is considered.
5. For Example
Consider two Order Releases as following
Location B is a Cross Dock Location in the Itinerary
Order Releases are Planned into Shipments as following
S1 A--------B (OR1, OR2)
S2 B--------C (OR1, OR2)
s3 C--------------D (OR1)
With B being a Cross Dock Location, there can be multiple other Order Releases that can be combined with OR1 and OR2 in case of Shipments originating from Location B
6. If Step 3 is executed after Planning the Shipments,
Cost Allocated to Order Release OR 1 should be from Shipments S1, S2, S3
Cost Allocated to Order Release OR 2 should be from Shipments S1, S2
7. For Order Release OR 1, If DIRECTDISTANCE method of Allocation is Used for each Shipment (S1,S2,S3) every time Distance between A and D is considered while dividing the Total Shipment Cost by Distance.
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