Managing Freight Charges at Shipment—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 prices 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

1. Make sure there are no shipments in Preliminary status with order lines connected.
2. Open the Site window.
3. Click the Sales and Procurement tab.
4. Select the Use Freight Charges at Shipment check box.
5. Create a shipment for a customer address 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 Shipment Freight Charges tab. Notice that freight map, zone, and freight price list have been fetched. Currency is fetched from the customer's default currency.
7. Connect a customer order line to the shipment.
8. Select the Shipment Freight Charges tab. You can see a freight charge line has been fetched automatically.
9. Check the adjusted gross weight, adjusted volume, charge qty, and charge price.
10. Now connect another line to the shipment.
11. The adjusted gross weight and adjusted volume of the connected order line will be added to the adjusted gross weight and adjusted volume of automatically fetched charge line. Consequently, the charge qty will be increased if the charge is an unit charge.
12. Charge price will be updated from the freight price list according to the new adjusted gross weight or adjusted volume based on the freight basis of the freight price list.

1. Define a freight free amount per the zone of your customer's address.
2. Enter a customer for the above deliver address.
3. Enter a customer order line so that the Total Net Amount/Base in the customer order exceeds freight free amount.
4. Right-click on the customer order header and then click Calculate/Consolidate Freight. Notice that the freight charge line's charge price is zero and the Freight Free check box is selected.
5. Release the customer order and do not proceed beyond the Reserved status.
6. Create a shipment for the same customer address and make sure that the above customer order lines are fetched to the Available Order Lines tab. Notice that the Freight Free check box is selected.

7. Connect a freight free customer order line to the shipment.

8. Note that two freight charge lines are created automatically. The first line is the normal freight charge line.
9. Notice that charge price is negative and charge cost is zero in the second line. By accumulating both lines, only charge cost is there and no charge price.
10. Add another line which is not freight free. Notice that only the first is updated.
11. Again add a freight free customer order line and notice that both Lines are updated.

Note: The second charge line will be created or updated with a negative charge price equal to the charge price in the first line, if the charge type is a unit charge. When the charge type is not a unit charge, the charge quantity is one, in both lines. In the second line, the charge price should be calculated as a fraction of the charge price of the first line proportionate to the adjusted gross weight or adjusted volume, depending on the freight basis of the freight price list.

Impact of Package Structure to Shipment Freight Charge

Purpose: The purpose of this exercise is to learn how the package structure of the shipment affects the shipment freight charge.

Windows:
Shipment

Note: If the package structure has been created for the shipment, freight charges are calculated according to the package structure. i.e. freight charges are not updated when connecting order lines, but when connecting order lines to the package structure.

1. Create a few customer order lines.

2. Create a shipment and connect those customer order lines to the shipment.

3. Right-Click on the shipment header and then click Generate Structure.

4. Click on the Package Structure tab, and notice the values in the columns Freight Free, Freight Factor and Adjusted Gross Volume.

5. In the header of this tab, you can notice adjusted net weight, total tare weight, adjusted gross weight and volume of the contents of the entire shipment.

6. The shipment freight charges are updated according the changes in the package structure.

7. Connect another order line to the shipment.

8. Notice that the shipment freight charge is not updated.

9. Right-click on the shipment header and then click Generate Structure. This will update the package structure, including the order line connected in step 7.

10. The freight charge line is now updated.

11. Add handling units and package units to the package structure. Notice the values in the Total Volume and Adjusted Gross Weight fields in the Package Structure tab.

12. The freight charge line is updated according to the changes made in package structure.