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4 Replies Latest reply: Jan 21, 2013 1:34 PM by user6595027 RSS

Actual estimate for the Freight Charge

820206 Newbie
Currently Being Moderated
Hi All,

We have a requirement to estimate the freight charge while entering the order itself, whereas the actual freight comes at the time of pick release which takes place in a third party syatem.
This goes like below:

Customer Service gets a call from the customer and have to tell them the frieght charges along with the order total. Now, pick release happens in the third party system and it also provides the actual freight cost while picking and shipping the order +(This is a black box for us)+. Oracle EBS has just to do the ship confirm. This freight cost is different most of the time from that estimated while entering the order.
Therefore, we need to give the customers the closest estimate compared to the actual freight cost.

All pointers here are highly appreciated..

Thanks,
Rahul
  • 1. Re: Actual estimate for the Freight Charge
    761288 Pro
    Currently Being Moderated
    Hi Rahul,

    I'd suggest you start with the Oracle white paper Oracle Order Management Freight & Special Charges and Converting Freight Costs into Charges with Basic Pricing which has some similar scenarios to your own described therein.

    It's not clear exactly what your requirement is: do you hold the estimated freight charge against the sales order and so include it with the acknowledgement? Is it feasible for you to manually or via an interface from your 3rd party apply the actual freight cost to the delivery in your EBS system? If so, the white paper will give you some clear ideas on how you can replace the estimated freight charge from the order with the actual freight charge applied at shipping and which you will be passing to Receivables (one small caveat here - the setups Oracle give here don't work for configured items).

    Regards,
    Jon
  • 2. Re: Actual estimate for the Freight Charge
    820206 Newbie
    Currently Being Moderated
    Hi,
    Thanks for your feedback. Actually we are looking for Actual Freight estimate calculation in Oracle instead of using a third party software. The actual freight cost is based on the no. of cartons shipped, weight of the items, quantity of items, distance of the zone(the whole geography divided into various zones), regions from the Warehouse etc. We are looking for a actual freight calculation which is as close to estimate.
    Thanks
  • 3. Re: Actual estimate for the Freight Charge
    761288 Pro
    Currently Being Moderated
    You can calculate any charge automatically in Advanced Pricing as long as you have a set of consistent rules and background info that you can apply via modifiers and formulae etc.

    I can see one problem you might have being predicting ahead of time how many cartons you intend to use. The zonal distance can be handled using the regions and zones functionality in shipping + a custom pricing attribute. Weight nett of packing shouldn't be a problem either.

    You'll have to give it a try and see how close you can get estimate to actual...

    Regards,
    Jon
  • 4. Re: Actual estimate for the Freight Charge
    user6595027 Newbie
    Currently Being Moderated
    Can you please let me know the id of the article you suggested (Oracle Order Management Freight & Special Charges and Converting Freight Costs into Charges with Basic Pricing). I tried looking for it in Knowledge base but not getting a hit for it.

    Thanks
    Dilip

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