Negative freight costs - example 6
The total freight costs for Load A are USD 25. The total freight costs of load A are decreased by USD 100.
| Object level | Object | Original freight costs | Decreased freight costs | Decreased by |
|---|---|---|---|---|
| 1 | Load A | 25 | -75 | 100 |
| 2 | Shipment 1 | -25 | -58.33 | 33.33 |
| 2 | Shipment 2 | 50 | -16.67 | 66.67 |
| 3 | Shipment 1, line 10 | -25 | -58.33 | 33.33 |
| 3 | Shipment 1, line 20 | 0 | 0 | 0 |
| 3 | Shipment 2, line 10 | 25 | -8.34 | 33.34 |
| 3 | Shipment 2, line 20 | 25 | -8.33 | 33.33 |
The USD 100 decrease of Load A is proportionally distributed among both shipments.
The original freight cost amount for Shipment 1 is USD -25.
To determine the part of the total decrease to be allocated to Shipment 1, the original freight costs of Shipment 1 are divided by the added original freight costs of both shipments and multiplied with the total decrease for the load:
25 / (25 + 50) * 100 = 33.33
For Shipment 2, the outcome is 50 / (50 + 25) * 100 = 66.67
To determine the part of the total decrease to be allocated to line 10 of Shipment 1, the original freight costs of line 10 are divided by the total original freight costs of Shipment 1 and multiplied with the total decrease for Shipment 1:
25 / (25 + 0) * 33.333 = 33.33
For line 20 of Shipment 1, the outcome is 0: 0 / (25 + 0) * 33.33 = 0.
For line 10 of Shipment 2, the decrease is:
25 / (25 + 25) * 66.67 = 33.34
For line 20, the decrease is USD 33.33. For the last shipment line of a shipment, the calculation is not performed, but instead the calculated amounts for the other shipment lines is added up and subtracted from the total freight cost increase for the shipment:
66.67 - 33.33 = 33.33