| Freight Order ControlFreight orders provide information about goods that must
be transported, and provide major input to transport planning and
subcontracting. The main purpose of the Freight Order Control is
to maintain freight orders, and to keep track of freight orders in the course
of their life cycle, both before and after their transportation has been
planned and executed, or before and after they have been
subcontracted. You can use Freight Invoicing to release invoicing data for transport costs to Invoicing. The
invoicing data is used by Invoicing to create invoices for transport costs to internal and
external business partners. Some business partners are invoiced for estimated
freight costs, others are invoiced for actual freight costs listed on the
carrier invoice, and sometimes invoicing is based on other agreements.
Invoicing data is ready for release to Invoicing when the
freight costs are calculated. Freight orders
originate from warehouse, sales, purchase, or distribution (EP) orders,
possibly in different logistic companies. Freight order generation can take
place automatically or in a batch. You can also manually create freight
orders. After a freight order
is created, the freight order will go through several stages until the goods
reach their destination and are paid. These stages include both inbound and
outbound goods transports. The freight order status shows the current stage of
the freight order or freight order line. In Freight Invoicing, you
can generate invoices for transportation costs. These can be transports of
purchased goods from suppliers or sold goods to customers. Organizations
usually subcontract the transportation of these goods to a carrier. Most
organizations have agreements with their customers and suppliers on how much
they can charge for transportation: the full amount they had to pay to the
carrier, some special rate, or no charge at all. Invoices for freight
costs are based on freight orders. To create invoices, the invoicing
information from these freight orders must be released to Freight Invoicing.
In Freight Invoicing, the
invoices are created and sent to the business partners. The following invoicing methods are used to determine the
amount invoiced to business partners for freight charges: You can specify negative freight costs for loads, shipments,
and shipment lines. For example, if a customer is overcharged for a shipment,
you can compensate the customer by charging a negative freight cost amount for
the next shipment. In Freight Invoicing, invoices can be created for both internal and external
business partners. External business partners are the customers or suppliers on
whose behalf the transportation costs are incurred. Internal business partners
are departments in larger organizations that can be invoiced internally. The
shipping offices arrange transportation on behalf of internal business partners
such as: For loads and
shipments, Freight calculates the estimated freight costs of loads and shipments during load
building. For freight order clusters, Freight calculates the estimated freight costs during freight order clustering. The Freight calculation engine is also used to calculate estimated freight costs for individual order lines of the following
types: - Sales order lines
- Sales quotation lines
- Freight order lines
Subcontracting is the process of offering freight orders to
an external carrier for transportation. You can create load plans for the
freight orders and offer the planned loads to a carrier, or you can offer
clustered freight order lines for which no load building is performed. The
freight orders can be clustered based on a range of common criteria, such as
delivery dates, service levels, shipping offices, transport means groups,
overlapping time windows, planning groups and so on, that is subcontracted to a
carrier. A freight order cluster is a group of freight order lines with matching properties that
is subcontracted to a carrier. These properties include shipping offices,
planning groups, transport means groups, and overlapping time windows. Cluster headers and
cluster lines have various sets of statuses. Cluster header statuses indicate
the progress of the cluster during the freight order cluster subcontracting
process. Cluster line statuses have the same status as the corresponding
freight order lines. To limit the number of freight order clusters generated for
a group of freight order lines, you can cluster freight order lines by
ship-from and ship-to address. Freight order clusters can be frequently changed for various
reasons. For example, if a carrier is not available, you must specify a
different carrier. Also, if a customer orders more goods, you must create
freight order lines. You can rerun the clustering process to cluster the new
freight order lines. Depending on the properties of the new freight order
lines, you can add the properties to the cluster, or you can create a new
cluster. In Freight, you can set the status of batches of cluster lines to Shipped or Completed. Using this option, you can indicate the
progress through warehousing and transport for cluster lines that are not
linked to Warehousing.
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