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. Note that both freight price list and customer order should not have the Use Price Incl Tax check box selected, otherwise the gross amount is compared.
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 Handling Unit Structure to Shipment Freight Charge

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

Windows:
Shipment

Note: If the handling unit structure has been created for the shipment, freight charges are calculated according to the connected order lines and handling unit structure - the total adjusted gross weight for the shipment.

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 Pack According to Packing Instruction. Alternatively one can create a handling unit structure manually and attach shipment lines to handling units.

4. Click on the General tab, and notice the values in the Operative Adjusted Gross Weight and Operative Volume fields.

5. On this tab, you can also notice net weight, adjusted net weight, tare weight, manual gross weight, operative gross weight and manual volume and operative volume of the contents of the entire shipment.

6. The shipment freight charges are updated according the changes in Operative Adjusted Gross Weight and Operative Volume fields, including changes in the handling unit structure.

7. Connect another order line to the shipment.

8. The freight charge line is now updated.

9. Add handling units to the handling unit structure. Notice the values in the Operative Adjusted Gross Weight and Operative Volume fields on the General tab.

10. The freight charge line is updated according to the changes made on the shipment, including connecting shipment lines and changing handling unit structure.