Landed costs – freight orders

This topic explains how landed costs are used in combination with freight orders that originate from a purchase order or warehouse transfer order.

If a freight order must be generated for a purchase order or warehouse transfer order, landed freight costs can be retrieved for the orders.

Calculation of the landed freight costs includes these main steps:

  1. Rough estimated landed costs are defaulted during order line entry based on carrier rate books.
  2. Landed costs are updated with detailed estimated freight costs after actualizing the load plan.
  3. Landed costs are updated with detailed actual freight costs after processing the carrier invoice.
Step 1. Rough estimation of landed (freight) costs at order line entry

When an order is created for which a freight order must be generated, LN searches for a landed costs set with the following characteristics:

If a landed freight cost line is linked at order header level, this line always has a landed cost amount of zero. When order lines are created, this landed cost line is copied to each line of the order. If no landed cost line of the By Freight Management method can be copied to the order line, LN tries to retrieve such a landed cost line from the Master Data. If no landed freight cost line can be defaulted at all, you can manually create a landed freight cost line in the Landed Cost Lines (tclct2100m000) session.

The Landed Cost Amount is calculated at order line entry and is based on the costing set up in Freight and the carrier rate books in Pricing.

Step 2. Detailed estimation of landed (freight) costs after load plan actualization

After a freight order line is linked to a purchase order line or warehouse transfer order line and the load plan is actualized for the freight order, the landed cost line of the originating order line is updated with the detailed estimated freight costs of the freight order line.

If the LoadPlanning check box is selected for the freight order line, the Landed Cost Amount in the Landed Cost Lines (tclct2100m000) session displays the estimated freight costs of the shipment(s) for the freight order line. If the LoadPlanning check box is cleared, the detailed estimation of landed freight costs is based on the costs of the linked freight order cluster instead of the shipments.

Step 3. Detailed actual calculation of landed (freight) costs after carrier invoice

After receipt of the carrier invoice and processing the invoice in Accounts Payable, the Actual Cost Final check box becomes selected for the freight order line. This triggers the update of the landed cost line with the actual landed freight costs from the carrier invoice.

In the Landed Cost Lines (tclct2100m000) session, the Invoice Amount, Amount, and Invoicing Status fields are updated from the freight order line. The detailed estimated freight costs can still be viewed on the freight order line.

Note
  • When a freight order line is generated for the originating order line, Freight becomes leading in determining the landed freight costs. Consequently, the landed freight costs are updated from the freight order line.
  • If landed cost lines exist for receipt lines, the landed freight costs are updated for both the originating order lines and the linked receipt lines. If multiple receipt lines exist for an originating order line, the landed (freight) cost amount is apportioned to the linked receipt lines.

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