<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/fm/onlinemanual/000026" xml:lang="en">
   <Header>
      <Title>Calculation of estimated freight costs</Title>
      <Keyword type="header" order="d1e454077">
         <Level1>Freight cost</Level1>
         <Level2>calculation</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>For loads and shipments, <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> calculates the estimated freight costs of loads and shipments during load
		building. For freight order clusters, <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> calculates the estimated freight
		costs during freight order clustering.</Paragraph>
      <List>
         <ListIntro>The <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> calculation engine is also used to calculate estimated
		  freight costs for individual order lines of the following types:</ListIntro>
         <ListItem>Sales order lines</ListItem>
         <ListItem>Sales quotation lines</ListItem>
         <ListItem>Freight order lines</ListItem>
      </List>
      <Paragraph>For information on
		freight cost revenue calculation for order lines or quotation lines, refer to <Link href="/baanerp/fm/onlinemanual/000028" role="manual">Freight cost revenue calculation at order line entry</Link>. The current topic deals with estimated freight cost calculation
		during load building and freight order clustering.</Paragraph>
      <Paragraph>The calculation engine
		is automatically activated when the load building process or the freight order
		clustering process is carried out.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>To enable freight cost calculation, you must select the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000#fmfrc000.cost" role="manual">Transport Costing</GUIRef> check box in the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000" role="session">Freight Rates and Costs Parameters (fmfrc0100m000)</GUIRef> session.</Paragraph>
      </Note>
      <Paragraph>The calculation engine
		calculates the freight costs of the loads and shipments while they are created
		by the load building engine, or calculates the freight costs of the freight
		order clusters during the clustering process.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>The freight cost calculation process</SectionTitle>
      <ProcedureList>
         <ListItem>For loads and
		  shipments, the calculation engine checks if rating must be based on shipments
		  or loads. If rating must be based on shipments, the calculated costs of the
		  shipments of a load are added to calculate the costs of a load. If rating must
		  be based on loads, the costs of the load are divided by the shipments to arrive
		  at the costs per shipment. For clusters, rating is based on clusters (the
		  calculation engine sees that the rate basis is not shipment or load, and thus
		  bases the rating on clusters). The estimated costs of the freight order cluster
		  are divided over the individual freight order lines based on the setting of the <Link href="/baanerp/fm/frc/fmfrc0100m000#fmfrc000.aloc" role="formfield">Cost Allocation Based On</Link> field in the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000" role="session">Freight Rates and Costs Parameters (fmfrc0100m000)</GUIRef> session.</ListItem>
         <ListItem>The calculation engine
		  determines the <Link href="/baanerp/fm/glossary/glossary#000026" role="glossary">rate basis number</Link> for the
		  shipment, load, or cluster. If the values defined for the rate basis number
		  match those of the cluster, shipment, or load, the rate basis number is
		  allocated to the cluster, shipment, or load.</ListItem>
         <ListItem>The rate basis number
		  and several other shipment, load, or cluster attributes, such as carriers or
		  service levels, are passed on to <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef>, which uses this information to
		  retrieve the appropriate carrier rate. For further information, see <Link href="/baanerp/td/onlinemanual/000384" role="manual">Freight rate retrieval</Link>.</ListItem>
         <ListItem>The costs are
		  calculated with the rate retrieved from <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef>, the travelling
		  distance derived from the ship-from and ship-to addresses, and the total
		  quantities of the goods to be transported.</ListItem>
      </ProcedureList>
   </GeneralSection>
   <GeneralSection ID="recalculate_freight_costs">
      <SectionTitle>Freight cost recalculation</SectionTitle>
      <List>
         <ListIntro>In the <GUIRef href="/baanerp/fm/frc/fmfrc0100m000" role="session">Freight Rates and Costs Parameters (fmfrc0100m000)</GUIRef>, the following fields control freight
		  cost recalculation:</ListIntro>
         <ListItem>
            <Link href="/baanerp/fm/frc/fmfrc0100m000#fmfrc000.refc" role="formfield">Recalculation of Freight Costs</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/fm/frc/fmfrc0100m000#fmfrc000.rccs" role="formfield">Recalculate Load Costs until Status</Link>
         </ListItem>
      </List>
      <Paragraph>To recalculate freight
		costs for loads, shipments, or clusters after the load building process or the
		clustering process is carried out, you can activate the calculation process in
		the <GUIRef href="/baanerp/fm/frc/fmfrc0240m000" role="session">Calculate Freight Costs (fmfrc0240m000)</GUIRef> session. Recalculation can be useful for
		various reasons, for example, after a recent change of the rates in the freight
		rate books. Before you activate the calculation process, you must select the
		plans, loads, shipments, or freight order clusters for which you want to
		calculate the estimated freight costs. The <GUIRef href="/baanerp/fm/frc/fmfrc0240m000" role="session">Calculate Freight Costs (fmfrc0240m000)</GUIRef> session is available on the <Link href="/baanerp/tc/glossary/glossary#specific" role="glossary">appropriate</Link> menu of the
		relevant sessions. The calculation engine uses the carrier rates to determine
		the estimated freight costs.</Paragraph>
      <GeneralSection>
         <SectionTitle>Reset costs when composing loads and
		  shipments</SectionTitle>
         <Paragraph>If you remove the shipment lines from a shipment, or the
		  shipment from a load, LN resets the costs of the load and shipment to 0.00. In such cases, LN does not change the
		  total costs for the relevant plan but redistributes the costs over the loads,
		  shipments, and shipment lines of the plan.</Paragraph>
         <ExampleSection>
            <SectionTitle>Example</SectionTitle>
            <TABLE width="100%" border="1" space-and-orientation="indented-max"
                   borderstyle="default">
               <TBODY noTR="5">
                  <TR no="1" isLast="false">
                     <TD rowspan="1" colspan="1"> </TD>
                     <TH rowspan="1" colspan="1">Costs</TH>
                  </TR>
                  <TR no="2" isLast="false">
                     <TH rowspan="1" colspan="1">Load
					 plan PL110002</TH>
                     <TD rowspan="1" colspan="1">100</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TH rowspan="1" colspan="1">Load
					 L110003</TH>
                     <TD rowspan="1" colspan="1">100</TD>
                  </TR>
                  <TR no="4" isLast="false">
                     <TH rowspan="1" colspan="1">Shipment
					 S110001</TH>
                     <TD rowspan="1" colspan="1">50</TD>
                  </TR>
                  <TR no="5" isLast="true">
                     <TH rowspan="1" colspan="1">Shipment
					 S110002</TH>
                     <TD rowspan="1" colspan="1">50</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph>If the shipment lines are removed from shipment S110002, the
			 costs of the load plan are as follows:</Paragraph>
            <TABLE width="100%" border="1" space-and-orientation="indented-max"
                   borderstyle="default">
               <TBODY noTR="5">
                  <TR no="1" isLast="false">
                     <TD rowspan="1" colspan="1"> </TD>
                     <TH rowspan="1" colspan="1">Costs</TH>
                  </TR>
                  <TR no="2" isLast="false">
                     <TH rowspan="1" colspan="1">Load
					 plan PL110002</TH>
                     <TD rowspan="1" colspan="1">100</TD>
                  </TR>
                  <TR no="3" isLast="false">
                     <TH rowspan="1" colspan="1">Load
					 L110003</TH>
                     <TD rowspan="1" colspan="1">100</TD>
                  </TR>
                  <TR no="4" isLast="false">
                     <TH rowspan="1" colspan="1">Shipment
					 S110001</TH>
                     <TD rowspan="1" colspan="1">100</TD>
                  </TR>
                  <TR no="5" isLast="true">
                     <TH rowspan="1" colspan="1">Shipment
					 S110002</TH>
                     <TD rowspan="1" colspan="1">0.00</TD>
                  </TR>
               </TBODY>
            </TABLE>
            <Paragraph>This process is separate from freight cost recalculation and
			 is performed whenever a load is emptied of its shipments or the shipment lines
			 are removed from a shipment.</Paragraph>
         </ExampleSection>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/000028" role="manual">Freight cost revenue calculation at order line entry</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000384" role="manual">Freight rate retrieval</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/000029" role="manual">The invoicing process</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/000102" role="manual">Freight Management in multisite environments</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>