Integration freight invoicing and sales invoicing

If a sales 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 sales company. The freight rate that a company must pay to the carrier is called freight costs. You can invoice your business partner, for whom you arranged transportation services, for freight.

Master data

If you want to invoice your business partner for freight, specify the following master data:

  • Items - Sales Business Partner (tdisa0510m000)
    Select the Invoice for Freight check box. The value of this check box is defaulted to the Invoice for Freight check box in the Sales Order Lines (tdsls4101m000) session, Sales Order Planned Delivery Lines (tdsls4101m100) session, and Sales Quotation Lines (tdsls1501m000) session.
  • Sold-to Business Partner (tccom4110s000)
    Select the Invoice Business Partner for Freight check box. The value of this check box is defaulted to the Freight Costs to be Invoiced check box in the Sales Orders (tdsls4100m000) session, or the Invoice forFreight check box in the Sales Quotations Overview (tdsls1500m000) session.
  • Invoice-to Business Partner (tccom4112s000)

    Set the Invoice for Freight Based On field to one of the following:

    • Freight Costs
      If you want the freight costs for an order, shipment, or load to be based on the best information currently available. The freight invoice amount is based on a carrier rate book in Pricing. These costs are also known as estimated freight costs.
    • Freight Costs (Update Allowed)
      If you want the freight costs to be invoiced after matching the carrier invoice to a certain load or shipment. Initially, the freight invoice amount is based on a carrier rate book in Pricing. These costs are also known as actual freight costs.
    • Client Rates
      If you want the freight invoice amount to be based on a client rate book in Pricing. This rate book stores freight service rates for a specific business partner.

Cost plus invoice

If the Invoice for Freight Based On field is Freight Costs or Freight Costs (Update Allowed), and if you want to add a cost plus amount or a cost plus percentage to the invoice, specify these fields in the Invoice-to Business Partner (tccom4112s000) session:

  • Additional Percentage
    The percentage with which the freight invoice amount must be increased
  • Additional Amount
    The amount with which the freight invoice amount must be increased
Invoicing methods

A company can invoice freight rates to the external business partner, based on:

  • Freight Costs
  • Freight Costs (Update Allowed)
  • Client Rates
Freight Costs

The freight invoice amount is calculated 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 an order, shipment, or load. When the sales invoice is released to Invoicing, with the calculated amount on the sales order (delivery) line, the freight invoice is also released to Invoicing. In Invoicing, the order invoice is merged with the freight invoice and sent as one invoice.

If the freight invoice is released to Invoicing before the sales invoice is released, one invoice is sent for goods sold and one for goods transported.

Freight Costs (Update Allowed)

The freight amount for the order (delivery) line, or quotation line is prorated based on the entire load in Freight. First, the freight costs (estimated freight costs) are determined, based on the carrier rate books in Pricing. In a later stage, after the carrier invoice is received and matched in Accounts Payable, you can specify the actual costs. After the sales invoice is released to Invoicing, with the prorated amount on the sales order (delivery) line, which are the freight costs, the freight invoice is also released to Invoicing.

If the freight invoice is released to Invoicing before the sales invoice is released, one invoice is sent for goods sold and one for goods transported.

If the sales order (delivery) line is invoiced with the freight costs before the actual costs are received from the carrier, you can invoice the customer with the difference between the estimated freight costs and the actual costs.

Note

If you want to invoice your business partner with the difference, an additional invoice can be generated. 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 freight 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.

Freight (invoice) amount calculation

To calculate a freight invoice amount, carriers and corresponding freight rates are selected based on the Rate and Carrier/LSP Selection at Order Line parameter in the Freight Rates and Costs Parameters (fmfrc0100m000) session, which can be Interactive, Cheapest, or Prioritized.

Interactive

During sales order entry or sales quotation entry, you can zoom to Freight to select the most suitable carrier. Based on several factors, such as invoicing method, item, freight class, service level, transport type, and transport means group, the freight invoice amount is retrieved from a rate book in Pricing.

To retrieve a carrier, in the Sales Quotation Lines (tdsls1501m000), Sales Order Lines (tdsls4101m000), or Sales Order Planned Delivery Lines (tdsls4101m100) sessions:

  1. Select the Invoice forFreight check box.
  2. Click the Freight Amount button behind the Freight Amount field. The Freight Rates (fmfrc0530m000) session starts.
  3. Select the most suitable carrier and service level combination, and click OK.

After you made your selection from the Freight Rates (fmfrc0530m000) session, the following fields are automatically specified in the Sales Quotation Lines (tdsls1501m000), Sales Order Lines (tdsls4101m000) session, or Sales Order Planned Delivery Lines (tdsls4101m100) sessions:

Cheapest or Prioritized

During sales order/quotation entry or update, the carrier with the lowest rates or with the highest priority is automatically selected. The freight invoice amount is automatically calculated or recalculated.

Note
  • If the Freight Amount Binding check box is selected in the Sales Quotation Lines (tdsls1501m000), Sales Order Lines (tdsls4101m000), or Sales Order Planned Delivery Lines (tdsls4101m100) session, the Freight Amount is recalculated only if the ordered quantity changes. Other changes do not affect the freight amount.
  • During confirmation of a final shipment, the freight amount is left unchanged. During confirmation of a nonfinal shipment, the freight amount is divided pro rata across the delivery lines.
  • The freight amount is based on the ordered quantity and ordered amount, not the delivered quantity.

If the Show Calculation Log check box is selected in the Sales Quotation Lines (tdsls1501m000), Sales Order Lines (tdsls4101m000), or Sales Order Planned Delivery Lines (tdsls4101m100) session, you can view how the freight amount is calculated in a freight amount calculation log.

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