Freight cost revenue calculation at order line entry

Freight calculates the estimated freight costs of loads and shipments during load building, or freight order clusters during freight order clustering, but you can also calculate freight costs for individual freight order lines before load building or clustering takes place, or for individual sales order lines or sales quotation lines before freight order lines are created.

Freight cost revenues are revenues that result from the freight cost amounts that you charge your customers or suppliers with for transportation. For example, if you hired a carrier to transport goods to your customer, you can charge your customer for freight costs. The amount you charge your customer with can be equal to the amount you paid to the carrier, or some client rate.

For invoicing methods other than Client Rates, the invoice amount is updated with the freight costs from the carrier invoice, possibly with a mark-up.

For sales order lines and quotation lines, freight cost revenue calculation can be carried out before the corresponding freight order lines are created.

When freight cost revenue calculation takes place from a sales order line or sales quotation line, Freight checks the relevant data, such as the item, service level, and the loading/unloading dates and times against planning group criteria to find a matching planning group. This process is similar to grouping freight orders in planning groups.

When a planning group is found, Freight selects a carrier from the planning group and picks up the corresponding freight rate from Pricing. If the invoicing method defined for the invoice-to business partner is Client Rates, the Client Rates defined in Pricing are searched. If the invoicing method is Freight Costs or Freight Costs (Update Allowed), the carrier rates defined in Pricing are searched.

If the invoicing method is Not Applicable, no freight rates are searched.