Freight and Miscellaneous Charge Allocations

With appropriate Landed Cost Management Setup, you can use allocations to associate a freight or miscellaneous charge on an invoice with the cost of the items on the invoice. When you allocate freight or miscellaneous charges, distributions can be created with the same distribution combinations as the item lines that you allocated them to.

Allocation information is used to record the full cost of an item if you use periodic costing in Oracle Fusion Cost Management.

You can allocate a freight or miscellaneous charge line to all item lines on an invoice or to specific item lines.

Note: To determine inclusive tax and the available amount to allocate, tax is automatically calculated when you select an allocation action.

Important: You must configure Landed Cost Management setup to add the cost from a freight line to the item or PO line.

Allocating All Lines

To allocate a freight or miscellaneous charge line to all invoice item lines, select the Allocate All Lines action from the invoice lines action menu. With this action, the charge amount, less inclusive tax, is automatically allocated across the item lines.

For example, an invoice for 110 USD has two item lines, one for 75 USD and one for 25 USD. The freight charge is 10 USD. You allocate the freight to all lines and two distributions are automatically created, one for 7.50 USD and one for 2.50 USD.

Allocating Specific Lines

To allocate freight or miscellaneous charge lines to specific invoice item lines, select the Allocate Specific Lines action from the invoice lines action menu. You can allocate specific lines in the following ways:

• Select specific item lines and allocate the charge across the selected lines.
• Specify a charge amount for each item line.
• Specify a percentage of the charge amount to allocate to each item line.

Note: You can modify the saved allocations provided the distributions aren't generated yet.