Handling fees

  • Release version: Xanadu
  • Updated August 1, 2024
  • 2 minutes to read
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    Summary of Handling Fees

    This document outlines how administrators can configure handling fees and shipping methods associated with purchase requests within ServiceNow. Administrators can set conditions under which handling fees are applied, and manage shipping methods for efficient order processing.

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    Key Features

    • Handling Fees: Administrators can configure conditions on the Purchase Request table to apply handling fees, which can be either fixed or percentage-based. The handling fee with the lowest rank is applied if multiple fees are generated.
    • Purchase Line Creation: If a handling fee rule is in place, a new purchase line is created specifically for handling fees, which can be viewed under the My Purchases tab.
    • Shipping Methods: Admins can create and associate shipping methods with suppliers and delivery locations. These methods are prompted to shoppers during checkout, particularly for goods.
    • Mandatory Selection: Shoppers must select a shipping method during checkout, especially in full checkout where it is a required field on the Delivery date page.
    • Grouping Criteria: Shipping methods, along with supplier and business owner, are used for grouping purchase requisitions, allowing for organized order management.

    Key Outcomes

    By implementing handling fees and shipping methods, ServiceNow customers can enhance their procurement processes, ensuring that fees are accurately applied and that customers have a streamlined checkout experience. This leads to improved order management and customer satisfaction.

    As an administrator, you can configure the conditions of a purchase request, which when met, adds a handling fee to that purchase request. Any field on the Purchase Request table can be used as part of the conditions to determine if a handling fee is to be applied for a purchase.

    If multiple handling fees are generated based on the configurable conditions, the handling fee with the lowest rank is applied. A Procurement Administrator can leverage the Pricing table to apply handling fee pricing. In the Pricing table, handling fees can be set as a fixed price or as a percentage-based price. When percentage-based pricing is not applied, the handling fee line amount is a percentage of the total amount of all the lines on the purchase request.

    If there is a handling fee rule associated with a purchase requisition, a new purchase line is created with product type as handling fee. You can also view the details of this view-only handling fee purchase line from the My purchases tab.

    Shipping method

    As an administrator, you can create shipping methods and associate them with various suppliers and delivery locations. If a shipping method is defined by the admin for a specific supplier and a specific delivery location, it is prompted to the shopper during checkout. When multiple shipping methods are available, the user can select any one for the purchase. Shipping method is only applicable for product type goods. Shipping method records store the details of the carrier, the applicable suppliers, and the valid delivery location countries for those suppliers. If no countries are defined for a supplier to deliver, the shipper delivers to all countries.

    The shopper is required to select the shipping method, if applicable, during both quick and full checkout to proceed. In full checkout, it is a mandatory field on the Delivery date page. During checkout, a shipping method is available for selection if both these conditions are met:
    • If the supplier in a given shipping method is listed in that shipping method's Supplier field.
    • If the delivery location country in a given shipping method is listed in the Supplier delivers to field.

    Shipping method is stored in each cart line and purchase line. It is also stored on each purchase requisition generated during full checkout, and is referenced in the purchase order and purchase order lines.

    Shipping method is one of the criteria for grouping purchase requisitions, along with supplier, business owner, and blanket requisition. All purchase lines with the same shipping method are grouped together.