Freight allocations

A shipment brings freight, duty or insurance cost against a purchase request. The buyer records shipment reference, allocation date, cost in USD and the allocation basis. The allocation points to both the parent request and the operating organization. The review uses the current parent revision, and the approved allocation retains its decision time.

The allocation keeps the shipment and cost against a specific purchase request. Its review must use the current parent revision. The decision record and operation receipt let a buyer distinguish an entered charge from an approved, reconciled one.

• Prepare. Put the owner, supplier and operating entity on the record before review.
• Decide. Check the submitted scope and leave a decision with a reason when human approval is required.
• Verify. Compare the stored effect with the intended action before treating the work as complete.

Agree which charges are eligible, who supplies the charge amount and what allocation basis applies. One run should use one basis and currency, and the allocated sum should equal the eligible charge. Decide how to handle a revised parent request before an allocation is approved. A charge with an unclear shipment reference should return for correction.

Rehearse a shipment with freight and duty entered under one allocation basis. Compare the sum with the eligible charge before review. If the parent request changes, send the charge for another decision against the new revision.

Open the submitted allocation and its parent request. Check the shipment reference, cost, basis and organization. Compare the review decision with the parent revision and the operation receipt. If the charge total or basis is wrong, reject or return it with a reason before completion.

Ask the Purchasing Approver to identify the shipment, amount, basis and parent revision they reviewed. A mismatched amount or basis goes back to the Buyer with a reason. Check the operation receipt before marking the allocation complete.

For a shipment with several charges, compare the total allocated cost with the eligible charge before approval. Keep the shipment reference and one agreed basis consistent across the run so the next reviewer can trace the amount.

• Allocation status board — Allocations grouped by their recorded status and shipment.
• Allocation review queue — Submitted charges with cost, basis and parent request ready for review.

Follow request to commitment, receipt and invoice match, and landed cost review for the related decisions.