Allocation Rule

This page is accessed via Financials > Allocation Rule Management > Allocation Rule.

Allocation rules are sets of parameters that govern the allocation of the transportation costs. Allocation rules specify the type of costs (planned or actual), the basis (by order base line, by order release, and by line item), the metrics, and the percentages of allocation to be applied.

Planning costs are derived from buy shipments/shipment groups. Actual costs are based on the freight charges of invoices, and their line items, for which payment vouchers have been issued.

The formulas for allocation follow this pattern:

Metric x Weighted Percent/100 x Base Cost

The base cost is the sum of all the costs associated with a shipment/shipment group.

Note: For allocation rules to be used, they must be saved in one or more allocation rule profiles.

For enabling parallel processing of allocation, the optional feature "ENABLE ALLOCATION PARALLEL PROCESSING" needs to be enabled.  If this feature is not enabled, then the allocation will happen in sequence.

The optional feature "ENABLE ALLOCATION PARALLEL PROCESSING" is dependent on the optional feature "RAISE STATUS CHANGE EVENTS IN NEW PROCESS" which is enabled by default. If you disable "RAISE STATUS CHANGE EVENTS IN NEW PROCESS", the optional feature "ENABLE ALLOCATION PARALLEL PROCESSING" is also disabled.

For processing allocation in parallel, a new thread group "allocation" is assigned. You can change the group if needed by using the property glog.workflow.task.group.Allocation (default value is 'allocation'). You can increase the number of threads required for processing by changing the property glog.workflow.queueThreads.allocation (default value is '2').

• The Allocation Rule ID uniquely identifies a rule. The IDs of saved rules cannot be edited. You can optionally limit the Allocation Rule by using the Location Profile ID field. If a Location Profile is entered, the locations that are part of the profile will be compared to the first stop on the shipment/shipment group. If that location is in the profile, then the Allocation Rule will be used.
• Consolidated Invoice/Shipment Group Allocation Type:
  • This is used to define how Oracle Transportation Management will allocate consolidated invoices to orders on related shipments.
    • If you select By Line Item, the amount of the child invoice will be allocated to the orders on the related shipment.
    • If you select By Total, the total payment amount will be allocated to the orders on the related shipment.
  • Refer to Allocation of Voucher - Shipment Group to know how this field affects the allocation of voucher of a shipment group to orders on related shipments.
• A Mode Profile ID can be used as a criteria for determining the allocation rule for a given invoice. The transport mode of the shipment/shipment group associated with the child invoice will be matched to the mode profile of the allocation rules.
• Use the Shipment, Voucher, and Bill options to designate to what this allocation rule will be applied.
• If you select the Voucher check box in the previous step, the Voucher VAT check box is displayed. Select this check box to allocate the VAT (value added tax) of the voucher when this rule is applied. The allocated VAT will be displayed as an allocated cost with a VAT code on the order release/order release line/order base line view page. The related order releases, order release lines, or order base lines are fetched based on the cost reference records saved against the cost lines. The cost references for voucher lines are fetched based on the invoice line item cost references.
  Allocation of a voucher VAT takes place as follows:
  
  If the voucher invoice lines have cost references, the VAT amount of the voucher line is allocated to the respective order release/order release line/order base line using those cost references.
  
  If the voucher invoice lines do not have cost references, then the VAT amount of that line is allocated to all the matched order release lines of the invoice based on the allocation rule.
  
  When the property glog.invoice.approveByLine is set to false and the invoice is approved partially, voucher invoice line VAT records are not created. If you perform the action Allocate Voucher, then the VAT amounts present in VAT analysis are allocated to all the matched order release lines based on the allocation rule.

  Note: When an accessorial applies to all orders on a shipment/shipment group, the accessorial charge is allocated based on how it is defined here.

  Note: When allocating shipments associated with shipment groups, only order-based metrics are used.

Allocation Rule Details

1. Select a Basis. This field enables you to allocate charges by order, by line, or by order base line.
2. Select a cost type from the Cost Type drop-down list. Your choices are:
   • Base
   • Accessorial
   • Stop-off Charge
   • Discount
   • Circuity Charge
   • Delta
   • Other
3. If applicable, choose an accessorial code from the Accessorial Code ID field.
4. Select an allocation method from the Allocation Method ID field.
5. Click Save.

   Note: You can add multiple allocation rule details. Remember to click Save after defining each detail.

6. Click Finished.