Job Costing

[gravi_in]

Hi,

Is there anybody who has used the Job Costing functionality. I mean the Sell Job view which would have all the Revenues and Expenses showing on the Screen.

The question I have is that can some costs/revenues pertaining to a sell job be excluded from the view? I am trying to find out if we can exclude intercompany transactions from the shipment profitability.

Also when we interface OTM shipments to EBS, is it a good idea to interface some Buy Shipments into AR? The business process that is requiring this is that for Destination costs, Origin country sets up these costs and have to give negative Credits to the destination country. We are trying to map our intercompany processing and are running out of ideas. Need some help.

Thanks

Ravi

[bmj_23]

Re: Job Costing

Hi Ravi - I think that what you are looking at in that job costing screen is the standard cost allocation from buy/sell shipments back to the relevant order release and order release line. This allocation is controlled by the allocation rules and allocation rule profiles defined on the service providers that are being used on the shipments.

In addition to the standard order release and order release line cost allocation, you have the ability to define NFRC rules which allow you to add NFRC's to jobs in OTM over and above the order release cost allocation.

I believe I understand your intercompany cost processing requirements (having spent time with a freight forwarding client) but I dont think there is any natural mechanism in OTM to do what you may wish to do at the leve of detail that you probably require.

If you are attending the OTM SIG, then I would suggest networking with clients there to research this further. Also, take the opportunity to discuss this with the OTM development group.

Please re-post on here if I can be of any further assistance.

[gravi_in]

Re: Job Costing

Hi bmj_23,

Thanks for the reply.

I understand that the MAWB cost can be allocated to the HAWB and that this allocation is controlled by the allocation rules and allocation rule profiles defined on the service providers that are being used on the shipments.

But, during the life of the shipments, there are various NFRCs that can be added for the purpose of your intercompany settlement, which if included in the shipment profitability, will skew it. That is the reason why we need to exclude these from the screen.

Anyway, yes I am hoping to speak with the Oracle Development and also with other clients to understand how the IC processing is being handled by them.

Thanks

Ravi

[bmj_23]

Re: Job Costing

Hi Ravi - just be careful with the terminology - I am not sure what objects you are referring to with the MAWB and HAWB (I understand what those are in business terms), but in OTM speak, do you buy / sell shipments and order releases ? If so, that is functionality that has existed for a number of years and is not FF specific.

In terms of the NFRC functionality, that was designed, I believe, to be a place holder for costs relating to a job that were not transportation related. It was not really designed as an intercompany charging mechanism (would love to see your design if it can be done).

Definitely catch up with Oracle development - my last understanding is that a proper mechanism for handing IC costs and revenue is due in future OTM releases.

[gravi_in]

Re: Job Costing

Hi bmj_23,

I have started to be careful with the terminology when I am talking in the OTM world . I just referred to MAWB and HAWB to you as you had mentioned that you have worked with a Freight Forwarding Client.

As far as our design is concerned, we have not yet finalized on anything yet, but yes, that is where we are going. I am not yet sure if it is the right track, but things look promising.

Thanks

Ravi

[bmj_23]

Re: Job Costing

Hi Ravi - as with all software applications, terminology is dead important ;-)

I have done a lot of work with an international FF client using OTM, but mapping their terminology in air / ocean / road freight to the OTM objects is a key part of the process in understanding the software capability.

Post how you get on discussing your requirements with the team in King of Prussia.