| Freight Rating and Costing |  |
| The Freight Rates and Cost module is used to calculate estimated freight costs and additional costs. Freight costs To calculate the freight costs, the Freight Rates and Cost module uses the applicable carrier rates which are stored in Pricing. The freight-cost calculation engine is automatically activated when load building or freight order clustering is carried out. The calculation engine calculates the freight costs while loads and shipments or freight order clusters are created. The calculation engine determines whether rating is carried out per shipment, load, or cluster. If a shipment, load, or cluster matches the criteria for a given carrier rate, ERP LN picks up this rate from Pricing and uses this rate as a basis for freight cost calculation for the load, shipment, or cluster. The freight-cost calculation engine can also be used to calculate freight costs for the following entities: Sales order lines Sales quotation lines Freight order lines Additional costs You can also add additional costs to the freight costs of a shipment or load. Additional costs are charges for extra services such as extra packaging, insurance, and so on. Additional costs are levied for shipment lines, and can be invoiced to the customer. This depends on the agreements made with the business partner. Related topics Freight cost revenue calculation at order line entry Calculation of estimated freight costs To allocate additional costs |