Integration freight invoicing and purchase invoicing

If a purchasing 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 purchasing company. The freight rate that a company must pay to the carrier is called freight costs.

Master data

To invoice your external business partner for freight, specify the following master data:

In the Buy-from Business Partner (tccom4120s000) session, select the Invoice Business Partner for Freight check box to indicate that you want the business partner to pay for the freight costs you make.
In the Invoice-to Business Partner (tccom4112s000) session, define the Invoice for Freight Based On field as:
- Freight Costs
  If you want the freight costs for a 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.
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

Note: These master data fields are used as a default for the same fields in the Purchase Orders (tdpur4100m000) and RFQ Bidders (tdpur1505m000) sessions, but can be overwritten in these sessions.

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

Freight calculates the freight invoice amount 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 the shipment/load. Freight releases the freight invoice to Invoicing.

Freight Costs (update allowed)

Freight prorates the freight amount for the purchase order (estimated freight costs) based on the entire load in Freight. It occurs that, when Freight releases the freight invoice with the estimated freight costs to Invoicing, the invoice is sent before the actual costs are received from the carrier. In this case, first the estimated freight costs are determined, based on the carrier rate books as stored in Pricing. In a later stage, after the carrier invoice is received and matched in Accounts Payable, the actual costs can be specified. Consequently, you can invoice your business partner the difference between the estimated costs and the actual costs.

Note: If you want to invoice your business partner with the difference, LN can generate an additional invoice. 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 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.