Shipping cost calculations
Summarize
Summary of Shipping Cost Calculations
This framework allows for the integration of shipping cost calculations into Sourcing and Purchasing Automation, enabling full value purchase approvals. Both ShoppingHub administrators and buyers can provide shipping estimates, ensuring transparency and accuracy in purchase requests.
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Key Features
- Administrator Shipping Estimates: Administrators can set a default shipping estimate as a percentage through the
snshop.default.shipping.estimateproperty, applicable to all purchases without specific estimates. - Approval Process Integration: Shipping estimates can be included in purchase requests via the
snshop.shipping.estimate.inclusionproperty. If marked true, shipping costs will be factored into purchase line totals; if false, they will be excluded from both the approval and checkout calculations. - Buyer Shipping Estimates: Buyers can set estimates at the supplier or product level, allowing for specific shipping costs to be prioritized. This is done by entering percentage values in the respective fields within the Purchasing Automation tab.
- Cart Line Shipping Calculation: Shipping estimates are calculated based on prioritization logic for goods in cart lines. Services, however, will show a shipping cost of 0.0.
Key Outcomes
By utilizing these shipping cost calculations, organizations can ensure that all shipping expenses are transparently managed and accounted for in the purchasing process. Administrators maintain control over default estimates while providing flexibility for buyers to tailor their shipping estimates, enhancing efficiency and compliance with organizational policies.
A framework to integrate shipping cost calculations into Sourcing and Purchasing Automation is implemented such that approvals can be done on the full value of purchases.
Shipping estimates can be provided by both the ShoppingHub administrator and the buyer.
Shipping estimates from ShoppingHub administrator
A ShoppingHub administrator can set a default system-wide shipping estimate as a percentage. This can then be applied to all purchases that require shipping, when no other shipping estimates or data exist. This is enabled through a system property sn_shop.default.shipping.estimate. Organizations that have a policy around an acceptable threshold shipping cost might want to enter the threshold in the sn_shop.default.shipping.estimate.
A ShoppingHub administrator can also configure shipping estimates to be included in purchase requests for the approval process. This is enabled through a system property sn_shop.shipping.estimate.inclusion, which is included in purchase request approvals. If this inclusion is marked as true, the shipping estimate from the cart line or checkout is included as a field in the purchase line and in the total amount in the purchase request, while the estimate in cost allocation is not considered. However, if this inclusion is marked as false, not only would shipping be excluded in the purchase request approval process, but also not calculated at checkout, even if data is included at the product, supplier, or system levels.
Shipping estimates from buyer
- Supplier:
Set a standard percentage estimate for shipping costs from a specific supplier. This estimate is then applied to all the orders that require shipping from that supplier, which do not have any estimate at the product level. In the Purchasing Automation tab of the supplier record, enter a shipping estimate value in decimal in the Default shipping estimate for products from this supplier (calculated as percentage of negotiated unit price) field.
- Product:
Set a default shipping estimate for a supplier product record. This is then prioritized in estimating the shipping cost of a purchase over any supplier level estimate or default shipping estimate. In the Purchasing Automation tab of the supplier product record, enter a shipping estimate value in decimal in the Default shipping estimate for this supplier product (calculated as percentage of negotiated unit price) field.