| 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, you must define the following master data: In the Buy-from Business Partners (tccom4120s000) session, select the Invoice BP for Freight check box to indicate that you want the business partner to pay for the freight costs you make. This check box is used as a default for the Invoice External BP field in the Purchase Orders (tdpur4100m000) session, and the Invoice External BP field in the Request for Quotation - Buy-from BP's (tdpur1505m000) session, but can be overwritten in these sessions. In the Invoice-to Business Partners (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 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 The Invoice for Freight Based On field is used as a default for the Invoice Freight Costs Based On field in the Purchase Orders (tdpur4100m000) session and the Invoice Freight Costs Based On field in the Request for Quotation - Buy-from BP's (tdpur1505m000) 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 Freight Management 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. It is Freight Management that releases the freight invoice to Central Invoicing. Freight Costs (update allowed) Freight Management prorates the freight amount for the purchase order (estimated freight costs) based on the entire load in Freight Management. It occurs that, when Freight Management releases the freight invoice with the estimated freight costs to Central Invoicing, the invoice is sent before the actual costs are received from the carrier. In other words, first the estimated freight costs are determined, based on the carrier rate books as stored in Pricing Control. In a later stage, after the carrier invoice is received and matched in Accounts Payable, the actual costs can be entered. As a result, 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, 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 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. Related topics Freight rate retrieval To define freight rate books Freight rate book codes Invoicing methods Integration Purchase and Freight Management |