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1 Reply Latest reply: Mar 17, 2013 9:26 PM by 990330 RSS

Cost Factor - What is Allocation Basis in Cost Factor in Sourcing Rules?

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Hello All,

We are defining Cost factors.
The Cost factors are defined in sourcing super user.
In the Cost factor window > create > Cost management > there is ALLOCATION BASIS (Quantity, value, Volume and weight) tab,

1. Can anyone please tell me what is the purpose of this?
2. Will it be used for landed cost management? Please also note we are not using Advanced Pricing.

I have searched for the explanation and description of ALLOCATION BASIS in the following user guides but find nothing related to that:

1. Purchasing
2. Cost Management
3. Advanced Pricing
4. Sourcing Rules
5. Landed Cost Management

The navigation path for ALLOCATION BASIS is as follows:

Sourcing Super User (may need to assign) > Sourcing > Sourcing Home page > Administration > Cost Factors > Create or update existing cost factor > Cost Management > ALLOCATION BASIS

The screenshot is available on the mentioned link:
http://www.filefactory.com/file/30usdteqz779/n/Sou rcing.docx

Please guide us.

Thanks,
Junaid

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