Allocation Method

This page is accessed via Financials > Power Data > Allocation > Allocation Method.

This page gives you the ability to define allocation methods by cost type. Once you have defined allocation methods, you can use them in the Allocation Rule Manager.

Defining an Allocation Method

The Allocation Method ID uniquely identifies a defined method. The IDs of saved methods cannot be edited.
Select the basis (Line, Order Base Line, or Order) to which this allocation method will apply.
Enter a brief description of the method in the Description field.
Select the Use Shipment Ship Unit option if that applies to the method you are defining. Use this check box when you want to get the metrics from the shipment ship unit rather than the shipment ship unit line.
Note: Allocation by means of shipment ship unit is used when an existing shipment ship unit line lacks metric details. This check box does not pertain to the Declared Value allocation metric as there is no declared value defined on the shipment ship unit.

Allocation Method Details

Basis	Metric	Description
Order	Dwell Time	Dwell Time is the duration spent by an order or a ship unit at a cross dock. It is calculated based on the difference between the departure time of the ship unit on the outbound shipment and the arrival time of the corresponding ship unit on the inbound shipment. The departure and arrival time are taken from the shipment stop, where a ship unit is picked up and dropped off respectively. Note: The dwell time metric is applicable for order level and not at line level. The Use Shipment Ship Unit check box will not have any impact on the dwell time calculation.
Order	Carried Distance	The carried distance is the cumulative distance that an order or item travels from its origin to its destination, consisting of the sum of the distances between the stops that it traveled.
Line, Order Base Line, Order	Dimensional Weight	Dimensional weight is calculated as the Length x Width x Height of the shipment/DIM factor.
Order	Direct Distance	The direct distance is the distance that an order or item travels in a single stop from its origin to its destination. Note: See the glog.settlement.allocation.metric.directDistance.checkForOrderPickupAndDropoffStopsOnlyOnShipment property for more information.
Line, Order Base Line, Order	Piece Count	The piece count is the number of parts in a shipment. For example, if a computer is sent as a shipment, the entire computer may be considered one ship unit (or line item), but the number of boxed pieces being shipped as parts of that ship unit (monitor, CPU, speakers, keyboard, mouse) would be five.
Line, Order Base Line, Order	Piece Count Direct Distance	This is the multiplied value of the piece count of the order/order line/order base line on the shipment and the direct distance from the pick-up stop to the delivery stop.
Line, Order Base Line, Order	Piece Count Carried Distance	This is multiplied value of the piece count of the order/order line/order base line on the shipment and the carried distance from the pick-up stop to the delivery stop.
Order	Ship Unit Count	Allocation is based on the number of shipment ship units that contains the order/order line/order base line..
Order	Ship Unit Count Direct Distance	This is the multiplied value of the ship unit count of the order/order line/order base line and the direct distance from the pick-up stop to the delivery stop.
Order	Ship Unit Count Carried Distance	This is the multiplied value of the ship unit count of the order/order line/order base line and the carried distance from the pick-up stop to the delivery stop.
Order	ERU Count	The number of Equipment Reference Unit (ERU) for the order/order line/order base line.
Order	ERU Count Direct Distance	This is the multiplied value of the ERU count of the order/order line/order base line and the direct distance from the pick-up stop to the delivery stop.
Order	ERU Count Carried Distance	This is the multiplied value of the ERU count of the order/order line/order base line and the carried distance from the pick-up stop to the delivery stop.
Line, Order Base Line, Order	Volume	This is the volume of the order/order line/order base line on the shipment.
Line, Order Base Line, Order	Volume Carried Distance	The same as Weight Carried Distance, but for volume.
Line, Order Base Line, Order	Volume Direct Distance	The same as Weight Direct Distance, but for volume.
Line, Order Base Line, Order	Weight	This is the weight of the order/order line/order base line on the shipment.
Line, Order Base Line, Order	Weight Carried Distance	A ton mile is the weight multiplied by the distance travelled. Rate offerings are used to calculate ton miles. The Weight Carried Distance metric requires that a rate offering has been saved in the shipments to be allocated.
Line, Order Base Line, Order	Weight Direct Distance	Weight direct distance is the weight of an order on a shipment multiplied by the direct distance between its origin and destination. The Weight Direct Distance metric accepts a zero weight allocation. If there is a single order on the shipment, and the order has a weight of zero, then the total cost of the shipment will be allocated to that order. If there are multiple orders on the shipment, and one or more has a zero weight, the orders with zero weight will receive an allocated cost of zero. If all the orders on a shipment have a zero weight, then allocation will not be performed on that shipment.
Line, Order Base Line, Order	Declared Value	This allows any cost of a shipment (planned) or voucher (actual) to be allocated based on the declared value of order base lines, order release, or order release lines (each line corresponds to an item). The actual planned declared value of an item will be on the shipment ship unit line, which is where OTM gets the declared value of each order base line or order release line. OTM sums up the declared value of these order base lines or order release lines to get the declared value of the order base or order release. This metric cannot be used when the allocation method defines the metric to be retrieved from the shipment ship unit since OTM does not have the declared value defined on the shipment ship unit.

Select a metric from the Metric drop-down list. The contents of the list depend on what you chose in Step 2 above. The formula for calculating the allocation is as follows:
(Order, Order Base Line, or Order Release Line Metric value/Total Metric value) * (Weighted Percent/100) * Cost

Order, Order Base Line, or Order Release Line Metric value - The metric value of an order or order release line is always fetched from shipment ship unit line(s) corresponding to an order or order release line. If the Use Shipment Ship Unit check box on the allocation method is checked, then OTM will get the metric value from the shipment ship unit corresponding to the order or order release line. The metric value for an order base line is fetched from the order base line itself and not from ship unit lines. Metric value is as defined by the metric; either weight or volume or piece count, carried distance, and so on.

Total Metric value - Sum of metric values of all the order, order base line, or order release lines corresponding to a shipment, voucher, or bill.

Cost - The total cost of the shipment, voucher or bill. If you want to see the total allocated cost for an order, order base line, or order release line, use the total cost of shipment, voucher or bill. If you want to see how each individual cost of the shipment, voucher or bill is allocated to an order, order base line, or order release line, use the individual cost here.
Enter an identifier in the Equipment Reference Unit ID field if you are defining an allocation method based on any ERU metric..
Enter a percent for the selected basis in the Percentage field.
Click Save.
Continue entering allocation method details by repeating Steps 1-3. Remember that the percentages must total 100. For example, if you selected a line item-based weight metric of 90 percent, the other metrics for planned line item allocation must add up to ten percent, for a total of 100 percent.
Click Finished.

Allocation Method

Defining an Allocation Method

Allocation Method Details

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