Manage Freight Cost Calculation

This document describes how to manage freight cost calculation.

Before you start

Refer to these documents:

See Basic Settings for Freight Cost and Freight Cost Calculation

See Freight Cost Management

Freight cost calculation

The freight cost can be calculated upon request any time before the issue of a delivery or shipment. When the delivery or shipment is issued, the freight cost is automatically recalculated. The freight cost can then be calculated again whenever requested before the freight cost is distributed. If the calculation is performed from an API, it can be performed before the freight cost is posted to the accounts. The calculation is based on the freight agreement from 'Purchase Agreement. Open' (PPS100), the freight cost elements used on the freight agreement lines in 'Purchase Agreement. Connect Freight Cost Element' (PPS105) and the freight rates from 'PO Agreement. Connect Scaled Freight Rates' (PPS109).

Automatic calculation of freight cost

The freight cost will be automatically calculated as soon as the delivery is dispatched and its status is 60 ('Not received') or higher in 'Delivery. Open Toolbox' (MWS410). The same is true for a shipment when the shipment status is 60/60 ('The shipment is reported') in 'Shipment. Open Toolbox' (DRS100). The calculated freight cost will also be saved at this point.

The calculated freight cost is displayed in 'Freight Cost. Open Toolbox' (DRS500). In (MWS410) and (DRS100), open (DRS500) using the related option 55='Freight cost toolbox'.

Manual calculation of freight cost

The freight cost in (DRS500) can be manually updated for all delivery statuses and shipment statuses as long as the freight cost is not yet distributed.

The 'Manual update – freight rate' field in (PPS105) must be selected for a change of the values in (DRS500) that M3 calculates to be enabled. For each line with a freight cost element where manual update is permitted, the 'Freight element amount' field can be changed on the B and E panels in (DRS500).

The 'Manually locked' field indicates whether the specific line will be calculated or recalculated, and not the other lines. To lock and unlock all lines, use function key F14='Lock/unlock all'. To lock the selected line, type the value '1' in the 'Manually locked' field and press Enter. To unlock the selected line, type the value '0' in the same field and press Enter. You can also lock and unlock a line by activating and deactivating the 'Manually locked' checkbox on the E-panel. Value '1' means that no recalculation will be performed on the freight cost element line.

Function key F16='Recalculate values' retrieves the valid values for each operand and performs the calculation. The calculated amounts are displayed on the B panel. Note that using this action does not mean that the calculated value is saved. Function key F15='Confirm rates' saves the calculated freight cost.

Markup and markdown in freight cost

In freight cost calculation, one can either calculate the freight cost based on elements adding to or deducting from the freight cost. If an element should add a positive value to the freight cost, select the Markup check box in 'Costing Element. Open' (PPS280). This costing element can then be connected to a purchase agreement in (PPS105). If you do not select the check box, the value is instead considered a markdown and is deducted from the total freight cost.

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