Integration freight invoicing and purchase invoicingIf a purchasing company is responsible for the transportation of goods and hires a carrier to transport the goods, after transportation, the carrier sends an invoice to the purchasing company. The freight rate that a company must pay to the carrier is called freight costs. Master data To invoice your external business partner for freight, specify the following master data:
Note These master data fields are used as a default for the same fields in the Purchase Orders (tdpur4100m000) and Request for Quotation - Buy-from BP (tdpur1505m000) sessions, but can be overwritten in these sessions. Invoicing methods A company can invoice freight rates to the external business partner, based on:
Freight Costs Freight calculates the freight invoice amount based on the best information currently available (estimated freight costs). These freight costs are retrieved from a carrier rate book in Pricing and are updated each time a change is made to the shipment/load. Freight releases the freight invoice to Invoicing. Freight Costs (update allowed) Freight prorates the freight amount for the purchase order (estimated freight costs) based on the entire load in Freight. It occurs that, when Freight releases the freight invoice with the estimated freight costs to Invoicing, the invoice is sent before the actual costs are received from the carrier. In this case, first the estimated freight costs are determined, based on the carrier rate books as stored in Pricing. In a later stage, after the carrier invoice is received and matched in Accounts Payable, the actual costs can be specified. Consequently, you can invoice your business partner the difference between the estimated costs and the actual costs. Note If you want to invoice your business partner with the difference, LN can generate an additional invoice. The invoice is based on the data you specify in the If amount greater than or If greater than fields of the Freight Invoicing Parameters (fmfri0100m000) session. Client Rates If the invoicing method is Client Rates, the invoice amount is based on fixed agreements with customers about the freight rates that can be charged to them in order to be compensated for the freight costs that a company must pay to the carrier.
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