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<ManualTopic ID="/baanerp/fm/onlinemanual/000049" xml:lang="en">
   <Header>
      <Title>To define and use areas in Freight</Title>
      <Keyword type="header" order="d1e467083">
         <Level1>Area</Level1>
         <Level2>master data</Level2>
      </Keyword>
   </Header>
   <AimSection>
      <Paragraph>In <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef>, an area is made up of a number of addresses that share the
		same <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000#tcmcs045.creg" role="field">Area</GUIRef> entity. Areas are defined in the <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000" role="session">Areas (tcmcs0145m000)</GUIRef> session.</Paragraph>
      <Paragraph>You can use Areas for the following purposes:</Paragraph>
      <List>
         <ListItem>To define the addresses included in a standard route.</ListItem>
         <ListItem>To serve as a planning group criterion for freight order lines.</ListItem>
      </List>
   </AimSection>
   <GeneralSection>
      <SectionTitle>To define an area</SectionTitle>
      <Paragraph>To define an area, you must access the <GUIRef href="/baanerp/fm/fmd/fmfmd0110m000" role="session">Addresses - Freight Management (fmfmd0110m000)</GUIRef> session and to each address that you want
		to include in the area, you add an area code from the <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000" role="session">Areas (tcmcs0145m000)</GUIRef> session.</Paragraph>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>To define a sales district in central London, define an <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000#tcmcs045.creg" role="field">Area</GUIRef> titled LSW in the <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000" role="session">Areas (tcmcs0145m000)</GUIRef> session. In the <GUIRef href="/baanerp/fm/fmd/fmfmd0110m000" role="session">Addresses - Freight Management (fmfmd0110m000)</GUIRef> session, select the customer addresses that
		  are located in the sales district, for example:</Paragraph>
         <List>
            <ListItem>86, Brompton Road, London SW3 1ER</ListItem>
            <ListItem>220, Fulham Rd, Chelsea, London SW10 9NB</ListItem>
            <ListItem>201 New Kings Road, London SW6 4SR</ListItem>
         </List>
         <Paragraph>To each of these addresses, add the <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000#tcmcs045.creg" role="field">Area</GUIRef> LSW.</Paragraph>
      </ExampleSection>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To use areas to define standard route
		addresses</SectionTitle>
      <Paragraph>You can use <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000#tcmcs045.creg" role="field">Area</GUIRef> or ZIP code ranges to define the addresses of a
		standard route. If you use areas to define the addresses of a standard route,
		the standard route usually consists of multiple areas.</Paragraph>
      <Paragraph>An area of a standard route includes a number of addresses, such
		as delivery addresses, as in the previous example.</Paragraph>
      <Paragraph>Freight planning and freight cost calculation is not carried out
		for the addresses within an area that is included in a standard route. The idea
		is, that the distances between the addresses within the area are so short, that
		freight planning and freight cost calculation is irrelevant. Freight planning
		and freight cost calculation is performed for the distances between the <GUIRef href="/baanerp/fm/lbd/fmlbd0151m000#fmlbd051.pool" role="manual">Reference Address</GUIRef> of the areas of a standard route.</Paragraph>
      <ExampleSection>
         <SectionTitle>Example of using areas in a standard
		  route</SectionTitle>
         <Paragraph>
            <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="384" width="576"
                      SRC="../images/standard_route_area.gif"
                      alt="[...]"/>
         </Paragraph>
         <Paragraph>The standard route in this example is travelled by a truck
		  delivering stereo equipment to retailers once every three weeks. Transport
		  costs are charged for the distances between the warehouse and the reference
		  addresses. There is no charge for distances travelled inside the areas.</Paragraph>
         <Paragraph>For example, a delivery to delivery address 7 in Area 2 is
		  charged for the distance between the warehouse and the reference address of
		  Area 1, added with the distance between the reference address of Area 1 and the
		  reference address of Area 2. The same amount would be charged for a delivery to
		  delivery address 5 in Area 2. Deliveries to the delivery addresses in Area 1
		  would be charged for the distance between the warehouse and the reference
		  address of Area 1. Deliveries to the delivery addresses of Area 3 would be
		  charged for the distances between the warehouse and the reference address of
		  Area 1, added with the distance between the reference address of Area 1 and the
		  reference address of Area 2, and the distance between the reference address of
		  Area 2 and the reference address of Area 3.</Paragraph>
      </ExampleSection>
      <ProcedureList>
         <ListTitle>How to define areas in standard routes</ListTitle>
         <ListIntro>To use <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000#tcmcs045.creg" role="field">Area</GUIRef> to define standard route addresses, proceed as
		  follows:</ListIntro>
         <ListItem>Define an area in the <GUIRef href="/baanerp/fm/fmd/fmfmd0110m000" role="session">Addresses - Freight Management (fmfmd0110m000)</GUIRef> session by adding an <GUIRef href="/baanerp/tc/mcs/tcmcs0145m000#tcmcs045.creg" role="field">Area</GUIRef> to the addresses that are covered by the standard
		  route.</ListItem>
         <ListItem>In the <GUIRef href="/baanerp/fm/lbd/fmlbd0152m000" role="session">Areas by Standard Route (fmlbd0152m000)</GUIRef> session, add the area to the standard route.</ListItem>
         <ListItem>Select the <GUIRef href="/baanerp/fm/lbd/fmlbd0151m000#fmlbd051.pool" role="manual">Reference Address</GUIRef> for the area.</ListItem>
         <ListItem>Repeat these steps for any following area that you want to
		  define for the standard route.</ListItem>
      </ProcedureList>
      <Paragraph>In the <GUIRef href="/baanerp/fm/lbd/fmlbd0152m000" role="session">Areas by Standard Route (fmlbd0152m000)</GUIRef> session, you can specify the order in which the
		areas are visited.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To serve as a planning group criteria for freight order
		lines</SectionTitle>
      <Paragraph>To use an area as a selection criterion for a planning group,
		you must use the area as an attribute in the plan matrix of the planning group
		and add the area to each loading or unloading address that you want to allocate
		to the planning group. If the area of a loading or unloading address of a
		freight order line matches the area of the planning group, the freight order
		line is allocated to the planning group.</Paragraph>
      <ExampleSection>
         <SectionTitle>Example</SectionTitle>
         <Paragraph>Shipping office New York 1 handles transport planning for all
		  goods issued and received by Warehouse New York 1. For transport planning to
		  run smoothly, freight orders are automatically created from sales orders, and
		  if a sales order lists goods issued by Warehouse New York 1, the freight order
		  generated from the sales order is automatically allocated to Shipping office
		  New York 1. To handle transport planning to Europe, Shipping office New York 1
		  operates two planning groups: Planning Group EU deals with EU countries, and
		  Planning Group Non-EU deals with non-EU countries.</Paragraph>
         <Paragraph>When a sales order is created for a customer in Europe for
		  goods that are stored in Warehouse New York 1, a freight order is generated and
		  automatically allocated to Shipping office New York 1. If the customer is
		  located in a EU country, transportation is handled by Planning Group EU, and if
		  the customer is located outside the EU, planning is handled by Planning Group
		  Non-EU.</Paragraph>
      </ExampleSection>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>As is described previously, freight cost calculation and
		  transport planning are not carried out for the addresses inside an area. For
		  very large regions with long distances between the loading and unloading
		  addresses, such as those described in the previous example, it is unlikely that
		  there is no charge for transport costs. Neither is it likely that you can do
		  without transport planning. In these cases, you can use areas to define
		  planning group criteria, but to define standard routes, use zip code ranges. In
		  this way, you can set up a rate structure for large regions. ZIP code ranges
		  are defined in the <GUIRef href="/baanerp/fm/lbd/fmlbd0151m000" role="session">ZIP Codes by Standard Route (fmlbd0151m000)</GUIRef> session.</Paragraph>
      </Note>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>To combine the two uses of areas</SectionTitle>
      <Paragraph>You can also combine the two uses of areas. In that case,
		freight order lines that travel addresses defined in the area of a standard
		route are allocated to the planning group linked to the same area. For example,
		Planning Group CLD (Central London) deals with transportation to retailers
		located in the central London area. These retailers are visited once every two
		weeks along a fixed route.</Paragraph>
      <Note>
         <SectionTitle>Note</SectionTitle>
         <Paragraph>If transport costs are charged and if transport planning is
		  required for transport between the addresses of the region, you cannot use an
		  area both for planning group allocation and standard route definition.</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/000012" role="manual">Plan matrices and matrix definitions</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/000021" role="manual">The use of standard routes</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/td/onlinemanual/000389" role="manual">To define freight rate books</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>