Revenue and Cost Allocation

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The Relationship of Freight and Movement

Job Allocation

There are a number of methods of allocation of jobs to manifests.

  1. An entire job can be allocated to an entire manifest
  2. An entire job can be allocated to selected movements within a manifest
  3. Selected job items can be allocated to an entire manifest
  4. Selected job items can be allocated to selected movements within a manifest.

Revenue Allocation

Revenue is calculated for the job based upon the rate card that was selected. This revenue can then be allocated to other components of the freight and movement process which will allow us to report on revenue and profit for such aspects as driver, truck, trip, customer and so on.

The revenue is allocated as follows;

Allocation to Job Items

Revenue is allocated to the items on a job. This is done on a ratio based upon the system price statistic selected. For example if a price statistic of pallets was selected the revenue will be split based upon the ratio of pallets on that item line compared with pallets on the entire job.

Allocation to Movements

The revenue allocated to an item will be allocated to the movements associated with that item on the basis of the Revenue Allocation cards that have been set up. Revenue allocation cards are used to set up your companies rules for the allocation of revenue to the various freight movements involved with any job. For example if the selected Revenue Allocation card indicates 20% then 20% of the items revenue allocation will be allocated to that movement.

Allocation to Manifests

A manifest’s revenue allocation will be the sum of the revenue allocated to the movements within that manifest.

Cost Allocation

Cost is calculated individually for all movements on a manifest. The movement costs are summed to calculate the manifest costs.

Allocation of Cost to Job Items

The cost of a movement is split over the job items on that movement based upon the cost statistic selected. For example if a cost statistic of weight was selected the cost will be split based upon the ratio of the weight of that item line compared with the weight of the entire job.

Job Item Cost

Is the sum of the movement costs that have been allocated to the item.

Job Cost

Is the sum of the costs allocated to the job items.