| Freight Rates and Costs Parameters (fmfrc0100m000)Use this session to view and maintain the
freight rates and costs parameters. Effective Date effective date. In the actual set,
or parameter set, the effective date field is empty, but the effective date is
taken as the default value in the Description field. In parameters sets
that precede the actual set, the effective date is displayed in the effective
date field. If you make a change
in the actual set, the changed set becomes the new actual set. First Priority The first priority zone-code type to be checked for zone based
rates. Second Priority The second zone-code type to be checked for zone based rates.
If no zone based rates of the first priority zone-code type are found, Freight searches Pricing for zone
based rates of the second priority zone-code type. Third Priority The third zone code type to be checked for zone based rates. If
no zone based rates of the first and second priority zone code type are found, Freight searches Pricing for zone
based rates of the third priority zone code type. Transport Costing If this check box is selected, freight cost calculation
for loads, shipments and freight order clusters is enabled and freight costs
can be posted in Financials.
Clearing this check box can be useful for organizations that do not require
freight cost checking or invoice matching. These organizations either have a
contract or partnership with a single carrier to handle all of their transport
and transport planning activities, or they run their own fleet and do not use
internal invoicing. Rate and Carrier/LSP Selection at Order Line This parameter is used to specify the criterion for carrier and
rate selection which is used to calculate the preliminary freight costs for
order lines before load building has been carried out. Preliminary freight
costs can be calculated for the following types of order lines: - Freight order lines.
- Sales order lines.
- Sales quotation
lines.
For freight order
lines, you can only calculate preliminary freight costs if the setting of the Invoice for Freight Based On parameter at the business partner listed on the
originating order is Client Rates. For sales order lines and sales quotation
lines, it depends on the setting of the Invoice for Freight Based On parameter at the business partner listed on the
order whether client rates or carrier rates are searched. Carrier Selection Rate and Carrier/LSP Selection at Warehouse Shipment Select the criterion for carrier and rate selection. LN uses the specified
criterion to calculate the estimated freight cost of loads and shipments
created in the Warehousing package of LN. LN selects the carrier and calculates freight costs based on the following
available options: Cheapest: LN selects the carrier that has the lowest rate of transport. Prioritized: LN selects the carrier based on the highest priority. You can specify
carrier priority in the Carriers/LSP by Shipping Office and Planning Group (fmfrc0160m000) session. Interactive: LN presents you with all the possible carrier/transport means group
and freight amount combinations in the Freight Rates Warehouse Shipments (fmfrc0535m000) session. You can select the desired
carrier/LSP. LN updates
the estimated freight cost for the selected combination in the load and
shipments. LN calculates the actual freight costs later, at the moment the freight loads and
shipments are created from the warehouse loads and shipments during the confirm
shipment.
Cost Allocation Based On This parameter determines the basis for cost allocation to
lower levels, for example, from load to shipment or from shipment to shipment
lines. If freight costs are calculated for a load, the costs of the load are
allocated to shipments proportionally. To enable freight cost calculation, the unit you select from
this list must be used for freight order lines. Cost allocation based on Note Any additional costs are not
included in the cost allocation process, only freight costs based on the
invoicing methods are considered. Recalculation of Freight Costs Sometimes, you must recalculate freight costs if changes are
made to shipments or loads. This parameter determines how recalculation of
freight costs must be carried out. Interactive means that if changes are made to the load, shipments, or shipment lines, a
dialog appears asking whether LN should recalculate the freight costs. Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Recalculate freight costs. Recalculate Load Costs until Status LN performs automatic or interactive load cost recalculation as specified in the Recalculation of Freight Costs field for the load
statuses preceding the specified load status. Allowed values - Planned
- Actual
- In Progress
- Confirmed
- Shipped
- Completed
Note Manually changing the freight costs or
initiating freight cost recalculation is always allowed, regardless of the
current field value. For more information, refer to Freight cost recalculation Performance aspects The setting of this field could affect system performance and database growth. For more information, refer to Recalculate freight costs. Freight Cost When Rates not Found The freight cost amount that must be applied when no applicable
freight rates exist in the Pricing module. Freight Cost When Rates not Found A generally accepted medium of exchange such as coins, treasury
notes, and banknotes. The following currency types are available in LN: - Home currency, which is used internally by companies to
calculate costs, record budgets, and register tax amounts
- Transaction currency, which is used in transactions with
business partners, such as orders and invoices
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