To allocate additional costs

To use additional cost calculation, you must select the Calculate Additional Costs check box in the Calculate Freight Costs (fmfrc0240m000) session. The criteria for shipment lines and cluster lines to be charged with extra costs and the amounts are maintained in additional cost sets. If a shipment line or a cluster line matches the criteria of an additional cost set, extra charges are added to the shipment line or cluster line.

An additional cost set consists of a code and a description. To each additional cost set, you must link one or more selection criteria and one or more cost items. In the cost items, the actual additional cost amounts are stored.

Additional cost sets are defined in the Additional Cost Sets (fmfrc2110m000) session. Selection criteria are linked to additional cost sets in the Additional Cost Sets by Carrier, Item and Address (fmfrc2120m000) session. Cost items are defined and linked to additional cost sets in the Items by Additional Cost Set (fmfrc2150m000) session.

Selection criterion

An additional cost set has any or all of the following selection criteria:

Carrier
Ship-from address
Ship-to address
Item. In this case, the item is not a cost item, but an item to be transported.

If the selection criteria of an additional cost set matches one of the properties of a shipment line or a cluster line, the cost items of the additional cost set can be used to add extra costs to the shipment line or cluster line.

Example

Additional cost set	Selection criteria
Set A	Carrier:	Road Express, Inc.
Set B	Ship-to address:	Denver
Set C	Item:	Computer
Set D	Carrier:	Southern Airways
	Item:	Frozen shark-fins

Shipment or cluster lines that are transported by Road Express, Inc are charged with the additional costs defined in Set A. Shipment or cluster lines that go to Denver are charged with the additional costs defined in Set B. Shipment lines or cluster lines that are transported by Southern Airways and that contain frozen shark-fins are charged with the additional costs defined in Set D.

Cost items

An additional cost set includes at least one cost item. A cost item includes the following elements:

Cost amount. The cost amount of the item is defined in the Items - Freight Management (fmfmd1100m000) session.
Item property on which the additional costs are based.
Upper and lower limits for the item property. You can define one of the following item properties for a cost item:
- Quantity
- Weight
- Volume
- Floor Space
- Freight Value

For each of these properties, you can define an Upper Limit and a Lower Limit to set the range within which the additional cost amount applies. When an item on a shipment line or cluster line matches the item property and the limits of the item property, the cost amount of the cost item is added to the shipment line or cluster line.

Example

Additional cost set A consists of the following cost items:

Cost item	Description	Cost base	Lower limit	Upper limit	Cost amount
1	Packaging cost	Weight	10 kg	20 kg	EUR 10
2	Packaging cost	Weight	21 kg	40 kg	EUR 15
3	Insurance	Freight value	USD 50	USD 150	EUR 10

The selection criterion of cost set A, as shown in the first example, is carrier Road Express, Inc. If a cluster line has carrier Road Express, Inc., the calculation engine checks the cost items of cost set A to see if the cost items match the properties of the cluster line. If, for example, the weight of the goods listed on the cluster line is between 10 kg and 20 kg, the cost amount of EUR 10 defined for cost item 1 is added to the cluster line.

Brief outline of the additional cost allocation process

The process of additional cost allocation includes the following steps:

The calculation engine selects the additional cost set whose selection criteria match the corresponding properties of a particular shipment line or cluster line.
Of the selected additional cost set, the calculation engine selects the cost item whose cost base and upper/lower limits match the properties of the item on the shipment line or cluster line.
The costs defined for the selected cost item are added to the costs of the shipment line or cluster line.

Note

If more than one additional cost set matches a particular shipment line or cluster line, all matching additional cost sets are used to add additional costs to the shipment line or cluster line. If more than one cost item matches the properties of a shipment line or cluster line, the cost amounts of all matching cost items are added to the shipment line or cluster line. As a result, the cost amounts of several cost items from several additional cost sets can be added to a shipment line or cluster line.