Freight Rates and Costs Parameters (fmfrc0100m000)

Use this session to view and maintain the freight rates and costs parameters.

Field Information

Effective Date

In the actual set, or parameter set, the effective date field is empty, but the effective date is taken as the default value in the Description field.

In parameters sets that precede the actual set, the effective date is displayed in the effective date field.

If you make a change in the actual set, the changed set becomes the new actual set.

First Priority

The first priority zone-code type to be checked for zone based rates.

Allowed values

ZIP: Zone by zip
City: Zone by city
Distance: Zone by distance
Not Applicable: Zone type not used.

Second Priority

The second zone-code type to be checked for zone based rates. If no zone based rates of the first priority zone-code type are found, Freight searches Pricing for zone based rates of the second priority zone-code type.

Allowed values

ZIP: Zone by zip
City: Zone by city
Distance: Zone by distance
Not Applicable: Zone type not used.

Third Priority

The third zone code type to be checked for zone based rates. If no zone based rates of the first and second priority zone code type are found, Freight searches Pricing for zone based rates of the third priority zone code type.

Allowed values

ZIP: Zone by zip
City: Zone by city
Distance: Zone by distance
Not Applicable: Zone type not used.

Transport Costing

If this check box is selected, freight cost calculation for loads, shipments and freight order clusters is enabled and freight costs can be posted in Financials . Clearing this check box can be useful for organizations that do not require freight cost checking or invoice matching. These organizations either have a contract or partnership with a single carrier to handle all of their transport and transport planning activities, or they run their own fleet and do not use internal invoicing.

Distance Break Type

The preferred break type for zones of the distance type.

Rate and Carrier/LSP Selection at Order Line

This parameter is used to specify the criterion for carrier and rate selection which is used to calculate the preliminary freight costs for order lines before load building has been carried out. Preliminary freight costs can be calculated for the following types of order lines:

Freight order lines.
Sales order lines.
Sales quotation lines.

Cheapest: The carrier with the lowest rates is selected.
Prioritized: The carrier with the highest priority is selected. Carrier priorities are set in the Priority field of the Carriers/LSP by Shipping Office and Planning Group (fmfrc0160m000) session.
Interactive: You can select a carrier from the available carriers displayed in the dialog that appears when you activate freight cost calculation.

Rate and Carrier/LSP Selection at Warehouse Shipment

Select the criterion for carrier and rate selection. LN uses the specified criterion to calculate the estimated freight cost of loads and shipments created in the Warehousing package of LN.

LN selects the carrier and calculates freight costs based on the following available options:

Cheapest: LN selects the carrier that has the lowest rate of transport.
Prioritized: LN selects the carrier based on the highest priority. You can specify carrier priority in the Carriers/LSP by Shipping Office and Planning Group (fmfrc0160m000) session.
Interactive: LN presents you with all the possible carrier/transport means group and freight amount combinations in the Freight Rates Warehouse Shipments (fmfrc0535m000) session. You can select the desired carrier/LSP. LN updates the estimated freight cost for the selected combination in the load and shipments. LN calculates the actual freight costs later, at the moment the freight loads and shipments are created from the warehouse loads and shipments during the confirm shipment.

Cost Allocation Based On

This parameter determines the basis for cost allocation to lower levels, for example, from load to shipment or from shipment to shipment lines. If freight costs are calculated for a load, the costs of the load are allocated to shipments proportionally.

Weight
Volume
Floor Space
Distance

Note: Any additional costs are not included in the cost allocation process, only freight costs based on the invoicing methods are considered.

Recalculation of Freight Costs

Sometimes, you must recalculate freight costs if changes are made to shipments or loads. This parameter determines how recalculation of freight costs must be carried out.

Allowed values

Automatic
Interactive
No

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Recalculate freight costs.

Recalculate Load Costs until Status

LN performs automatic or interactive load cost recalculation as specified in the Recalculation of Freight Costs field for the load statuses preceding the specified load status.

Allowed values

Planned
Actual
In Progress
Confirmed
Shipped
Completed

Note: Manually changing the freight costs or initiating freight cost recalculation is always allowed, regardless of the current field value. For more information, refer to Freight cost recalculation

Performance aspects

The setting of this field could affect system performance and database growth. For more information, refer to Recalculate freight costs.

Freight Cost When Rates not Found

The freight cost amount that must be applied when no applicable freight rates exist in the Pricing module.

Currency

currency

Freight Cost Component

The cost component to be used for coverage lines and service-order other costs lines in Service that cover freight costs. The freight costs are retrieved from Freight .

The Freight cost components are of type General Costs.