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<ManualTopic ID="/baanerp/fm/onlinemanual/000028" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Freight cost revenue calculation at order line entry</Title>
		<Keyword><Level1>rates</Level1>
		</Keyword>
		<Keyword><Level1>carrier selection</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph><GUIRef href="/baanerp/fm" role="package">Freight Management</GUIRef> 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.</Paragraph>
		<Paragraph>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 <Link href="/baanerp/fm/glossary/glossary#000069" role="glossary">client rate</Link>.</Paragraph>
		<GeneralSection><SectionTitle>Freight order lines</SectionTitle>
			<Paragraph>For freight order lines, to calculate freight cost revenues, you can click <GUIRef href="/baanerp/fm/fri/fmfri0110m000#calculate.invoice.amount" role="formcommand">Calculate</GUIRef> in the <GUIRef href="/baanerp/fm/fri/fmfri0110m000#fmfrc030.amnt" role="groupbox">Amount</GUIRef> group box in the <GUIRef href="/baanerp/fm/fri/fmfri0110m000" role="session">Freight Invoicing Information (fmfri0110m000)</GUIRef> session before loads, shipments, or freight order clusters are created. However, this calculation is subject to the following conditions:</Paragraph>
			<List><ListItem>The invoicing method must be <GUIRef href="/baanerp/tc/domains/com.infr#estimate" role="enum">Client Rates</GUIRef>.</ListItem>
				<ListItem>Freight costs must not be calculated for the originating sales order line, or if they are, the <GUIRef href="/baanerp/td/sls/tdsls4101m000#tdsls401.frbn" role="formfield">Freight Amount Binding</GUIRef> check box should not be selected.</ListItem>
			</List>
			<Paragraph>For invoicing methods other than <GUIRef href="/baanerp/tc/domains/com.infr#estimate" role="enum">Client Rates</GUIRef>, the invoice amount is updated with the freight costs from the carrier invoice, possibly with a mark-up.</Paragraph>
			<Paragraph>If freight cost revenue calculation takes place at freight order line entry, the following process takes place:</Paragraph>
			<ProcedureList><ListItem>If no carrier is specified for the freight order line, <GUIRef href="/baanerp/fm" role="package">Freight Management</GUIRef> searches for the carriers linked to the planning group to which the freight order line belongs.</ListItem>
				<ListItem>If <GUIRef href="/baanerp/fm" role="package">Freight Management</GUIRef> finds a carrier from the planning group, the corresponding client rate is picked up from the <GUIRef href="/baanerp/td/pcg" role="module">Pricing Control</GUIRef> module of <GUIRef href="/baanerp/td" role="package">Order Management</GUIRef>.</ListItem>
			</ProcedureList>
		</GeneralSection>
		<GeneralSection><SectionTitle>Sales order lines and sales quotation lines</SectionTitle>
			<Paragraph>For sales order lines and quotation lines, freight cost revenue calculation can be carried out before the corresponding freight order lines are created.</Paragraph>
			<Paragraph>When freight cost revenue calculation takes place from a sales order line or sales quotation line, <GUIRef href="/baanerp/fm" role="package">Freight Management</GUIRef> 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.</Paragraph>
			<Paragraph>When a planning group is found, <GUIRef href="/baanerp/fm" role="package">Freight Management</GUIRef> selects a carrier from the planning group and picks up the corresponding freight rate from the <GUIRef href="/baanerp/td/pcg" role="module">Pricing Control</GUIRef> module of <GUIRef href="/baanerp/td" role="package">Order Management</GUIRef>. If the invoicing method defined for the <GUIRef href="" role="manual">Invoice-to Business Partner</GUIRef> is <GUIRef href="/baanerp/tc/domains/com.infr#estimate" role="enum">Client Rates</GUIRef>, the <GUIRef href="/baanerp/tc/domains/com.infr#estimate" role="enum">Client Rates</GUIRef> defined in the <GUIRef href="/baanerp/td/pcg" role="module">Pricing Control</GUIRef> module of <GUIRef href="/baanerp/td" role="package">Order Management</GUIRef> are searched. If the invoicing method is <GUIRef href="/baanerp/tc/domains/com.infr#actual" role="enum">Freight Costs</GUIRef> or <GUIRef href="/baanerp/tc/domains/com.infr#costplus" role="enum">Freight Costs (Update Allowed)</GUIRef>, the carrier rates defined in the <GUIRef href="/baanerp/td/pcg" role="module">Pricing Control</GUIRef> module of <GUIRef href="/baanerp/td" role="package">Order Management</GUIRef> are searched.</Paragraph>
			<Paragraph>If the invoicing method is <GUIRef href="/baanerp/tc/domains/com.infr#not.applic" role="enum">Not Applicable</GUIRef>, no freight rates are searched.</Paragraph>
		</GeneralSection>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>For freight order lines, sales order lines, and sales quotation lines, carriers and corresponding freight rates are selected according to the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000#fmfrc000.focs" role="formfield">Rate and Carrier Selection at Order Line</GUIRef> parameter setting in the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000" role="session">Freight Rates and Costs Parameters (fmfrc0100m000)</GUIRef> session.</Paragraph>
		</Note>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/fm/onlinemanual/000037" role="manual">Freight order grouping</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/fm/onlinemanual/000026" role="manual">Calculation of estimated freight costs</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/fm/onlinemanual/000102" role="manual">Freight Management in multi-site environments</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
