Weight and Volume Pricing
To encourage customers to order in full truck, pallet, or container, you can monitor and offer order discounts based on the weight or volume of the order when setting up price rules. If pricing by weight or volume, you must also use the delivery management feature to group order lines into deliveries for pricing and shipment.
You can enter a separate weight and volume option (arbitration plan) on the General Information - Sold to Options page on the customer definition. The weight and volume option is used as the default weight and volume arbitration plan in the sold-to section of the Order Entry Form page during order entry. If a weight and volume arbitration plan is not entered on the Order Entry Form page, then a warning message appears, alerting the clerk that weight and volume pricing is used for the PeopleSoft Order Management business unit and to select a weight and volume option for the system to calculate the weight and volume pricing.
You can view the weight and volume pricing adjustments on the Deliveries page of the Order Entry Form in PeopleSoft Order Management. Use the Shipment Price Adjustments page to view the price rule information for weight and volume pricing.
Note: Weight and volume pricing is calculated when the order is saved. If weight and volume pricing was calculated manually, then it is recalculated when you save.
Setting Up Delivery Management for Weight and Volume Pricing
Delivery Management enables you to assemble demand lines together into a delivery so that the lines can be priced, freighted, or shipped as a group. Deliveries are managed automatically by the system as order schedule lines are added or modified in order entry. The system matches the attributes of the demand lines to group the lines into deliveries. The delivery definition can be configured by Inventory Business Unit. If possible, the system adds new schedule demand lines to an existing delivery ID. The system can also move modified schedule demand lines to another existing delivery ID. If a new or modified schedule demand line cannot be placed in an existing delivery ID, then the system creates a new delivery ID.
The following diagram displays the setup steps to enable the Delivery Management feature. These steps involve pages in both PeopleSoft Inventory and PeopleSoft Order Management that are used to enable the Delivery Management feature, define the delivery, determine how delivery IDs are numbered, define the dimensions of the delivery vehicle, define the dimensions of the items on a sales order, and determine when delivery IDs are created or changed.
Complete these tasks to enable the Delivery Management feature:
Use the Setup Fulfillment - Delivery/Freight page to enable delivery management for the Inventory business unit by selecting Yes or Manual for the Delivery Option field. This enables the delivery management feature for the Delivery Management Workbench and the Inventory fulfillment processes.
Use the Auto Numbering page to define the structure of the delivery ID numbering sequence at the SetID level. You can add multiple sequences with different prefixes to be used in different locations. You can also set the Inventory business unit SetID indirection to use a different SetID auto-numbering for each Inventory business unit.
Use the Order Entry Features page, within the Order Management business unit definition, to determine when a delivery ID should be applied to a sales order line or quote line. You can choose to create or update deliveries when a user saves a new or changed sales order or quote, or when the user changes a field value on a new or existing order or quote. You can also choose to create or update deliveries when the Order Completion process is run.
Use the Deliveries Restricted to Order field to determine whether all of the demand lines assigned to a delivery must be from the same sales order. This is available for quotes and sales orders only. The Deliveries Restricted to Order field can be defined within the default hierarchy on the Shipping and Returns page of the Order Management business unit, Order Group Shipping Terms page, customer's General Information - Ship To Options page, and the Buying Agreement Form - Header Terms page. In the default hierarchy, the more specific information overrides the more general information; in this case, the setting for the Deliveries Restricted to Order field that is defined on a buying agreement overrides a value on a customer and the value on the customer overrides the value on the order group. A value on the order group overrides the value at the order management business unit.
Use the Ship Via Code page to define the dimensions of one or more shipping methods, such as small delivery truck, large truck, or boxcar. The weight and volume constraints defined in the ship via code determine when a delivery ID has reached capacity and a new delivery ID must be created. In order entry, the system will warn the user when a capacity constraint is violated and automatically move new demand to a new delivery.
Use the Inventory Definition - Business Unit Options Delivery Management Definition page to identify the delivery key fields used to build a delivery ID. When the system groups order schedule demand lines together to create a delivery, certain field values, such as inventory business unit and scheduled shipment date, must be the same in all of the schedule lines. Use this page to define additional fields that must match in each schedule demand line added to one delivery ID. To use the weight and volume pricing feature, you must include the Ship Via code as an additional field.
Use the Define Business Unit Item - Inventory Weight/Volume page to define the weight and volume of individual item IDs. This information flows to the order schedule line so that the system can calculate the shipping weight and volume for the item quantity included in the line and determine when a delivery ID has reached the maximum weight or maximum volume. These weight and volume fields on the Define Item - General: Dimensions page are used when the same fields are not defined on the Define Business Unit Item - Inventory: Weight/Volume page.
Use the Setup Fulfillment- Demand Change Configuration page to identify the fulfillment state at which no further demand lines can be automatically added to the delivery ID by the system. In the Add Lines to Deliveries row, select the fulfillment state at which the system should consider the delivery closed for shipment. If any demand line on the delivery has reached the state defined, then the system no longer automatically adds new demand lines to the delivery.
The following diagram illustrates how demand lines are grouped together into deliveries. The shipping weight and volume of the individual schedule lines is compared to the maximum weight and maximum volume of the Ship Via code used to create the delivery.
The preceding diagram also illustrates how sales order schedule demand lines are grouped into delivery IDs. The Ship Via code for a container has a maximum weight of 40,000 pounds and a maximum volume of 4,000 cubic feet. All the schedule demand lines of this sales order are shipping from the same Inventory business unit on the same scheduled shipment date using the same carrier and the same ship via value. The weight and volume of the individual schedule line is based on the item quantity in this line multiplied by the shipping weight and shipping volume of the individual item (Define Business Unit Item - Inventory: Weight/Volume page). The first two lines are added to one delivery before it reaches the maximum weight of 40,000 pounds. The last three lines are added to a second delivery, which reaches the maximum volume of 4,000 cubic feet. If a sixth line were added to this sales order, a third delivery ID would be created since the first two delivery IDs have reached maximum capacity.