You can use the Allocations window to automatically create freight or miscellaneous distributions. The Allocations window displays when you navigate to the allocate button from invoice lines.
The charge distributions you create are allocated Freight or Miscellaneous distributions. Allocation associates a charge with the cost of an item on a receipt. This allocation information is used to record the full cost of a receipt item if you use one of the Periodic Costing options available in Oracle Cost Management. For details on Allocation, see: Allocation.
If you navigate to the Allocations window through an Invoice Line (not distribution), then all the allocated lines (Freight and Miscellaneous) display. If you view in the context of a Freight or Miscellaneous line, then you can see all the invoice lines and then allocate (percentage, amount, prorate) against the invoice lines. In this case, distributions for Freight and Miscellaneous lines are generated automatically based on invoice line distributions.
For each selected distribution, Payables creates a charge distribution and records the allocation. The new distribution has the same GL account as the distribution to which you allocate it. After Payables creates the distribution you can update the account any time before the invoice is accounted.
Note: If you are matching to a purchase order shipment or receipt, then you have the option of allocating directly in the match window, without navigating to the Distributions window. If you are matching to a purchase order distribution, then allocate freight and miscellaneous charges in the Allocate window. See: Allocate Window.
To create freight or miscellaneous distributions by allocating to item distributions:
In the Invoices window, enter all basic invoice information. See: Entering Basic Invoices.
Enter invoice distributions using the method of your choice. Select any Item or new distribution.
Note: The selected record must be an Item or a new distribution if you want to use the Charge Allocations window to create new distributions.
Choose the Allocate button. Payables opens the Charge Allocations window.
All the invoice lines display and you can allocate (percentage, amount, prorate) against the invoice lines. In this case, distributions for Freight and Miscellaneous lines are generated automatically based on invoice line distributions.
In the Allocations region, Payables displays all distributions. You can allocate freight and miscellaneous charges to Item distributions only.
Select the distributions to which you want to allocate the charge by checking the check box to the left of the Item distribution. If a distribution is not eligible for allocation, for example, it is an Item distribution, you cannot select the check box.
Specify the charge amounts allocated to each selected invoice line distribution. You can either prorate the charge amount to all selected Item distributions by using Prorate check box, or you can enter specific charge amounts for each selected Item distribution.
Prorate button. Payables creates distributions that have amounts proportional to the Item amounts on the selected distributions. For example, if you are allocating a $10 freight charge to two selected distributions, one for $75, and one for $25, Payables will create two freight distributions, one for $7.50, and one for $2.50.
Amount. Enter a charge amount in the Allocated Amount field for each selected Item distribution. The sum of the charge amounts, which is displayed in the Allocated Total field, must equal the charge amount you entered in the Amount field.
To create more allocated charge distributions (Freight or Miscellaneous), choose the New button. Payables saves your allocations and clears the Charge Allocations window so you can allocate new charges.
Choose the OK button to allocate the Charge Amount to the selected the invoice line distributions and close the window. Payables automatically creates the Freight or Miscellaneous distributions. You can review them in the Distributions window.