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How to Setup a Freight Charge Modifier for Application at the Line Level To Be Use to Convert Freight Costs Entered

in Shipping on the Delivery or Delivery Detail To a Freight Charge Applied to the Sales Order in Order Management.

Contents
1. 2. 3. 4. 5. 6. Create formula .................................................................................................................................. 2 Create modifier ................................................................................................................................. 4 Run QP: Maintains Denormalized Data in QP Qualifiers .................................................................. 7 Verify the value set that is attached to the pricing attribute Freight Cost ..................................... 8 Run Build Attribute Mapping Rules .................................................................................................. 8 Test.................................................................................................................................................... 9

A specific modifier, commonly referred to as the cost-to-charge modifier, is required to convert the freight cost to freight charges. The setup requires that the modifier is automatic, a formula is present on this modifier and that qualifiers are added so that the modifier is not applied until the time of shipping. This note will provide details for how to go about creating of this modifier. The screen shots were taken from an 11.5.10 internal vision instance yet also apply to R12. 1. Create formula Responsibility: Oracle Pricing Manager Navigate to: Pricing Formulas > Formulas Setup Note: Oracle Applications comes seeded with multiple formulas that one may be used that include the following: QP: Cost to charge conversion of Adminstration cost QP: Cost to charge conversion of Duty Cost QP: Cost to charge conversion of Export Cost QP: Cost to charge conversion of Freight Cost QP: Cost to charge conversion of Handling Cost QP: Cost to charge conversion of Insurance Cost to name a few. For the purpose of this note, we will use QP: Cost to charge conversion of Freight Cost.

One could opt to use this formula. However, in common business practices, sometimes the freight cost is not entered which would populate a null value for step 1 of this formula which will result in a failure and error. Therefore we will create a new formula similar to this formula to prevent such situations. The formula will be a direct transfer 1:1 for freight cost to freight charge. This means that if one enters 50.00 as a freight cost on the delivery detail, the freight charge that is applied will also be for 50.00. Please note that one could modify this formula as needed to give a markup (perhaps by adding another step in the formula to add the numeric constant = 25, to add $25 to the freight cost so that the freight charge would then be 75.00; 50 for freight cost plus $25). This is just the formula being used as a basic example:

Click on the green plus sign to create a new formula. Name: XX QP: Cost to charge conversion of Freight Cost. where XX is your initials. Formula: nvl(1,2) Under formula lines, enter two records as follows. Record 1 entry: Formula Type: Pricing Attribute Pricing Attribute Context: Pricing Attribute Pricing Attribute: Freight Cost Step: 1 Record 2 entry: Formula Type: Numeric Constant Component: 0 (Zero) Step: 2 Save.

In order to use this formula, one must build the formula package. From the top menu, select Tools > Build Formula Package

One should receive the following note:

Click ok and exit the form.

2. Create modifier Responsibility: Oracle Pricing Manager Navigate to: Modifiers > Modifier Setup Type: Freight and Special charge List Number: XX freight cost-to-charge Name: XX freight charge from freight cost Active: checked Automatic: checked

Next one will need to enter a record under the Modifiers Summary tab. Modifier No: Allow system to default this value Level: Line Modifier Type: Freight/Special Charge Automatic: will be checked Pricing Phase: Line Charges

Product Attribute: All Items Product Attribute Value: All Precedence: Accept default (or one may set this as needed)

Under Discounts/Charges tab enter: Charge Name: Freight Costs Formula: XX QP: Cost to charge conversion of Freight Cost Application Method: Lumpsum

For this scenario, we will want these freight charges only applied to sales order lines, not return lines. Therefore we will need to add a list qualifier. Click on the Line Qualifiers button.

Any predefined qualifier groups are shown on the form.

We will not use these so click OK. Now we are at the form that allows entry for qualifiers. Enter a records as follows: Record 1 which will limit application to only order lines, not return lines. Grouping Number: 1 Qualifier Context: Order Qualifier Attribute: Line Category Precedence: <leave as defaulted value or enter a new value> Operator: = Value From: ORDER Record 2 which will limit application to shippable lines only. Grouping Number: 1 Qualifier Context: Order Qualifier Attribute: Shippable Flag Precedence: <leave as defaulted value or enter a new value> Operator: = Value From: Yes Record 3 which make it so this modifier is not applied until shipping. Grouping Number: 1 Qualifier Context: Order Qualifier Attribute: Shipped Flag Precedence: <leave as defaulted value or enter a new value> Operator: = Value From: Yes Record 4 which will link the Freight Cost Type entered at Ship Confirm to this Charge. Grouping Number: 1 Qualifier Context: Order Qualifier Attribute: Freight Cost Type Code Precedence: <leave as defaulted value or enter a new value> Operator: = Value From: FREIGHT

Click OK Exit the form.

3. Run QP: Maintains Denormalized Data in QP Qualifiers One may manually run this concurrent request so that we may ensure it has been run for this modifier. This concurrent request populates information from this modifier into the denormalized tables. Responsibility: Oracle Pricing Manager Navigate to: Reports.

4. Verify the value set that is attached to the pricing attribute Freight Cost Context: 'PRICING ATTRIBUTE' Attribute: 'Freight Cost' To check this, 1. Go to Oracle Pricing Manager responsibility. 2. Go to Pricing -> Setup -> Attribute Management -> Context and Attributes 3. Query the context 'Pricing Attribute' 4. Go to Attributes region and query 'Freight Cost'. Check the value set attached to it. If it is blank please attach the value set 'QP: Number' and retest this issue. It should be attached to a numeric value set.
5. Run Build Attribute Mapping Rules Responsibility: Oracle Pricing Manager Navigate to: Reports Name = Build Attribute Mapping Rules Click OK Submit the concurrent request. This will ensure that the attribute mapping rules are up-to-date and will help with performance. NOTE: Run during non-peak times.

6. Test Responsibility: Order Management Super User (or equivalent) Navigate to: Orders, Returns > Sales Orders Enter a sales order with a sales order line for a shippable item. Book the sales order. Pick Release the sales order. Navigate to: Shipping > Transactions Query by from order number = <sales order created> Click on the Delivery tab. Actions > Assign Freight Costs > Go (button) Enter a record for freight costs.

Click Done (button). Ship confirm the order. Navigate to: Orders, Returns > Order Organizer

Query this order.

Notice the charges listed on the order header above. Click on the line items tab. Actions > Charges and Freight Costs

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To verify that the modifier created above was used, one may use Help > Diagnostics > Examine And set field = Adjustment_Name

We have verified that the freight charge is now present on the order in Order Management and will then be carried forward for invoicing. If the sales order line status shows as shipped, one will need to wait for the workflow background process to run to progress this order line to a closed status. Once the order is closed, the information is then populated into the Receivables interface tables and are eligible for invoicing. To run the workflow background process manually: Responsibility: Order Management Super User (or equivalent) Navigate to: Reports, Requests > Run Requests Select Single Request click the OK button. Name = Workflow Background Process Parameters: Item Type: OM Order Line Process Deferred: Yes Process Timeout: Yes Process Stuck: No Click OK Submit the request.

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