Managing Freight Charges at Customer Order—Exercises

Basic Data Setup

Define Freight Map and Zones

Purpose: The purpose of this exercise is define the freight map used in your site with the different zones that will be used for calculating the freight to your customer's delivery address.

Windows:
Freight Map

1. Enter the freight map header per ship via code.
2. Define zones.

General exercise for Define Freight Map and Zones.

Enter Freight Price List for Unit Based Charges

Purpose: The purpose of this exercise is to learn how to enter and define the freight price list, where the rates for freight will be set.

Windows:
Freight Price List

1. Enter a new freight price list header.
2. Enter freight price list lines.
3. Activate the freight price list.

General exercise for Enter Freight Price List for Unit Based Charges.

Main Exercise

Enter Customer Order with Freight Charges

Purpose: The purpose of this exercise is to show you that by entering a customer order line, the freight corresponding to it is automatically added to the order by inserting a charge line.

Windows:
Customer Order

1. Open the Customer Order window and click New.
2. Enter an order for a customer where you have defined a freight price list for the ship via and forwarder of the customer order. Make sure that the delivery address represents a freight zone where you have entered a freight price list line.
3. Use a delivery term that triggers the freight calculation.
4. Open the Delivery Information tab and observe that the freight map, zone and freight price list are shown there. If you assigned freight information for supply chain relation then the map and zone will be retrieved from there. Otherwise, the system assigns freight map and zone from the customer order.
5. Enter a customer order line for a sales part with weight, alternatively volume, and also with freight information defined.
6. Save the record. Observe that a charge has been automatically added to the order and that it is connected to the specific order line.

Consolidate Freight on a Customer Order

Purpose: The purpose of this exercise is to learn how to calculate the freight based on the weight or volume of the whole order, i.e. all order lines that will be delivered together.

Windows:
Customer Order

1. Open the Customer Order window and search for your order.
2. Make sure that there is more than one order line and its correspondent freight charge line.
3. Manually consolidate the freight by right-clicking and then clicking on Calculate/Consolidate Freight.
4. Observe that the freight price is now fetched from the price list for the total weight/volume of the lines together, and not just line by line.
5. Release the customer order and observe that the consolidation is performed automatically.

Handling Minimum Freight Amount and Freight Free Amount

Purpose: The purpose of this exercise is to learn the impact of zone specific information in freight price list to the freight charges.

Windows:
Freight Price List
Customer Order

1. Open the Freight Price List window and click the Zone Info tab.
2. Create a new record, and enter the zone ID in the Zone ID field, using the List of Values.
3. Enter a minimum freight amount and freight free amount per zone.
4. Repeat steps 2 and 3 for the required zones.
5. Enter an order for a customer where you have defined the supply chain relation with the above map and zone. Use a delivery term that triggers the freight calculation.
6. Click the Customer Order/Delivery Information tab and observe that the zone, map and freight price list are shown there.
7. Enter a customer order line so that the multiplication of the charge qty and the charge price relevant for the order line is less than the minimum freight amount.
8. Notice that the charge price is the minimum freight amount and charge qty is 1.
9. Add more customer order lines so that the Total Net Amount/Base field exceeds the freight free amount entered per the zone in the freight price list.
10. Right-click and then click Calculate/Consolidate Freight.
11. Notice that the charge price is set to zero in all the freight charge lines although the charge cost is not zero. Charge cost is taken from the Freight Price List window. The Freight Free checkbox is selected.

1. Open the Freight Price List window.
2. Click the Zone Info tab, and enter the fixed delivery price per zone.

3. Enter an order for a customer where you have defined the supply chain relation with the above map and zone. Use a delivery term that triggers the freight calculation.

4. Click the Delivery Information tab and observe that the zone, map and freight price list are shown there.
5. Enter a few customer order lines so that freight charges are fetched.
6. Select the Apply Fixed Delivery Freight check box in the Customer Order/Delivery Information tab. Notice that the fixed delivery freight is fetched from the Freight Price List/Zone Info tab.
7. This amount is shown in base currency. You can edit this value.
8. Notice that there is no difference in the Charges tab.
9. Right-click on the customer order header and then click Calculate/Consolidate Freight. Notice that the fixed delivery freight is distributed among freight charge lines proportionately to the connected order line weight or volume depending on the freight basis of the freight price list and the charge qty is 1.
10. Change the wanted delivery date on a customer order line. Consolidate again.
11. Notice that for the freight charge lines with a different delivery date, the charge price is equal to the fixed delivery freight. An amount equal to the fixed delivery freight has been distributed among other freight charge lines.
12. This is because the amount equal to the fixed delivery freight is applied for each set of customer order lines which are to be delivered together. i.e. common map, zone, ship via and delivery date.