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<ManualTopic ID="/baanerp/fm/onlinemanual/000028" xml:lang="en">
   <Header>
      <Title>Freight cost revenue calculation at order line entry</Title>
      <Keyword type="header" order="d1e487508">
         <Level1>Freight cost</Level1>
         <Level2>revenue calculation</Level2>
      </Keyword>
   </Header>
   <GeneralSection>
      <Paragraph>
         <GUIRef href="/baanerp/fm" role="package">Freight</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>
         <List>
            <ListIntro>For freight order lines, to calculate freight cost
			 revenues, you can click <GUIRef href="/baanerp/fm/fri/fmfri0110m000#calculate.invoice.amount" role="command">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:</ListIntro>
            <ListItem>The invoicing method
			 must be <GUIRef href="/baanerp/tc/domains/com.infr#estimate" role="option">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="manual">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="option">Client Rates</GUIRef>, the invoice
		  amount is updated with the freight costs from the carrier invoice, possibly
		  with a mark-up.</Paragraph>
         <ProcedureList>
            <ListIntro>If freight cost revenue calculation takes place at freight
			 order line entry, the following process takes place:</ListIntro>
            <ListItem>If no carrier is specified for the freight order line, <GUIRef href="/baanerp/fm" role="package">Freight</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</GUIRef> finds a carrier from the planning group, the corresponding
			 client rate is picked up from <GUIRef href="/baanerp/td/pcg" role="module">Pricing</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</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</GUIRef> selects a carrier from the planning group and picks up the corresponding
		  freight rate from <GUIRef href="/baanerp/td/pcg" role="module">Pricing</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="option">Client Rates</GUIRef>, the <GUIRef href="/baanerp/tc/domains/com.infr#estimate" role="option">Client Rates</GUIRef> defined in <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef> are searched. If the invoicing method
		  is <GUIRef href="/baanerp/tc/domains/com.infr#actual" role="option">Freight Costs</GUIRef> or <GUIRef href="/baanerp/tc/domains/com.infr#costplus" role="option">Freight Costs (Update Allowed)</GUIRef>, the carrier rates defined in <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef> are searched.</Paragraph>
         <Paragraph>If the invoicing
		  method is <GUIRef href="/baanerp/tc/domains/com.infr#not.applic" role="option">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="manual">Rate and Carrier/LSP 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 multisite environments</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>