| Integration Freight Invoicing and Sales Invoicing |  |
| If a sales 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 sales company. The freight rate that a company must pay to the carrier is called freight costs. You can invoice your business partner, for whom you arranged transportation services, for freight. Master data If you want to invoice your business partner for freight, you must define the following data: In the Items - Sales Business Partner (tdisa0510m000) session, select the Invoice for Freight check box. The value of this check box is defaulted to the Invoice for Freight check box in the Sales Order Lines (tdsls4101m000) session, Sales Order Delivery Lines (tdsls4101m100) session, and Sales Quotation Lines (tdsls1501m000) session. In the Sold-to Business Partners (tccom4110s000) session, select the Invoice BP for Freight check box. The value of this check box is defaulted to the Freight Costs to be Invoiced check box in the Sales Orders (tdsls4100m000) session, or the Invoice for Freight check box in the Sales Quotations (tdsls1500m000) session. In the Invoice-to Business Partners (tccom4112s000) session, you must 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 Control. 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 Control. 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 Control. This rate book stores freight service rates for a specific business parter. If the Invoice for Freight Based On field is set to Freight Costs or Freight Costs (Update Allowed), in the Invoice-to Business Partners (tccom4112s000) session, you can define the following fields if you want ERP LN to add a cost plus amount or a cost plus percentage to the invoice: 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 If no combination is present in Items - Sales Business Partner (tdisa0510m000) session, ERP LN defaults the value from the Freight Costs to be Invoiced check box in the Sales Orders (tdsls4100m000) session to the Invoice for Freight check box in the Sales Order Lines (tdsls4101m000) session, or Sales Order Delivery Lines (tdsls4101m100) session. ERP LN defaults the value from the Invoice for Freight check box in the Sales Quotations (tdsls1500m000) session to the Invoice for Freight check box in the Sales Quotation Lines (tdsls1501m000) session. The Invoice for Freight Based On field is used as a default for the Invoice Freight Costs Based On field in the Sales Orders (tdsls4100m000) session and the Invoice Freight Costs Based On field in the Sales Quotations (tdsls1500m000) session, but can be overwritten in these sessions. Explanation of 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 ERP LN 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 Control and are updated every time a change is made to the shipment/load. When Sales Control releases the sales invoice to Central Invoicing, with the calculated amount on the sales order (delivery) line, ERP LN automatically releases the freight invoice to Central Invoicing as well. Central Invoicing then combines the order invoice with the freight invoice and sends an invoice. However, Freight Management can release the freight invoice to Central Invoicing even though the sales invoice is not yet released to Central Invoicing. As a result, Sales Control sends an invoice for goods sold and Freight Management sends an invoice for goods transported. Freight Costs (Update Allowed) Freight Management prorates the freight amount for the order (delivery) line, or quotation line based on the entire load in Freight Management. First, the freight costs (estimated freight costs) are determined, based on the carrier rate books in Pricing Control. In a later stage, after the carrier invoice is received and matched in Accounts Payable, you can enter the actual costs. When Sales Control releases the sales invoice to Central Invoicing, with the prorated amount on the sales order (delivery) line, which are the freight costs, ERP LN automatically releases the freight invoice to Central Invoicing as well. However, Freight Management can release the freight invoice to Central Invoicing, even though the sales invoice is not yet released to Central Invoicing. In this case, Sales Control sends an invoice for goods sold and Freight Management sends an invoice for goods transported. If the sales order (delivery) line is invoiced with the freight costs before the actual costs are received from the carrier, you can invoice the customer with the difference between the estimated freight costs and the actual costs. Note If you want to invoice your business partner with the difference, ERP LN can generate an additional invoice. The invoice is based on the data you enter in the If amount greater than or the If greater than field of the Freight Invoicing Parameters (fmfri0100m000) session. Client Rates If the invoicing method is Client Rates, the freight 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. Note To calculate the freight invoice amount, you can click Freight Amount in the Sales Order Lines (tdsls4101m000) session, the Sales Order Delivery Lines (tdsls4101m100) session, or the Sales Quotation Lines (tdsls1501m000) session. As a result, ERP LN displays the freight invoice amount in the Freight Amount field of the Sales Order Lines (tdsls4101m000) session/ Sales Order Delivery Lines (tdsls4101m100) session, or in the Freight Amount field of the Sales Quotation Lines (tdsls1501m000) session. Related topics Invoicing methods Freight rate retrieval To define freight rate books Freight rate book codes Integration Sales and Freight Management Integration Freight Order Control and Sales Control Integration Freight Rating and Sales Control |