| Integration freight invoicing and sales invoicing |  |
| If a sales 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 sales company. The freight rate that a company must pay to the carrier is called freight costs. You can invoice your business partner, for whom you arranged transportation services, for freight. Master data If you want to invoice your business partner for freight, you must define the following data: Items - Sales Business Partner (tdisa0510m000) Select the Invoice for Freight check box. The value of this check box is defaulted to the Invoice for Freight check box in the Sales Order Lines (tdsls4101m000) session, Sales Order Delivery Lines (tdsls4101m100) session, and Sales Quotation Lines (tdsls1501m000) session. Sold-to Business Partner (tccom4110s000) Select the Invoice Business Partner for Freight check box. The value of this check box is defaulted to the Freight Costs to be Invoiced check box in the Sales Orders (tdsls4100m000) session, or the Invoice for Freight check box in the Sales Quotations (tdsls1500m000) session. Invoice-to Business Partner (tccom4112s000) Set the Invoice for Freight Based On field to one of the following: Freight Costs If you want the freight costs for an order, 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. 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. 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. This rate book stores freight service rates for a specific business parter. Cost plus invoice If the Invoice for Freight Based On field is set to Freight Costs or Freight Costs (Update Allowed), in the Invoice-to Business Partner (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 If no combination is present in Items - Sales Business Partner (tdisa0510m000) session, ERP LN defaults the value from the Freight Costs to be Invoiced check box in the Sales Orders (tdsls4100m000) session to the Invoice for Freight check box in the Sales Order Lines (tdsls4101m000) session, or Sales Order Delivery Lines (tdsls4101m100) session. ERP LN defaults the value from the Invoice for Freight check box in the Sales Quotations (tdsls1500m000) session to the Invoice for Freight check box in the Sales Quotation Lines (tdsls1501m000) session. The Invoice for Freight Based On field in the Invoice-to Business Partner (tccom4112s000) session is used as a default for the Invoice Freight Costs Based On field in the Sales Orders (tdsls4100m000) session and the Invoice Freight Costs Based On field in the Sales Quotations (tdsls1500m000) session, but can be overwritten in these sessions. 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 ERP LN 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 and are updated every time a change is made to an order, shipment, or load. When Sales Control releases the sales invoice to Invoicing, with the calculated amount on the sales order (delivery) line, ERP LN automatically releases the freight invoice to Invoicing as well. Invoicing then combines the order invoice with the freight invoice and sends an invoice. However, Freight can release the freight invoice to Invoicing even though the sales invoice is not yet released to Invoicing. As a result, Sales Control sends an invoice for goods sold and Freight sends an invoice for goods transported. Freight Costs (Update Allowed) Freight prorates the freight amount for the order (delivery) line, or quotation line based on the entire load in Freight. First, the freight costs (estimated freight costs) are determined, based on the carrier rate books in Pricing. In a later stage, after the carrier invoice is received and matched in Accounts Payable, you can enter the actual costs. When Sales Control releases the sales invoice to Invoicing, with the prorated amount on the sales order (delivery) line, which are the freight costs, ERP LN automatically releases the freight invoice to Invoicing as well. However, Freight can release the freight invoice to Invoicing, even though the sales invoice is not released yet to Invoicing. In this case, Sales Control sends an invoice for goods sold and Freight sends an invoice for goods transported. If the sales order (delivery) line is invoiced with the freight costs before the actual costs are received from the carrier, you can invoice the customer with the difference between the estimated freight 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 freight 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. Freight (invoice) amount calculation To calculate a freight invoice amount, carriers and corresponding freight rates are selected based on the Rate and Carrier/LSP Selection at Order Line parameter in the Freight Rates and Costs Parameters (fmfrc0100m000) session. Rate and Carrier/LSP Selection at Order Line set to Interactive During sales order entry or sales quotation entry, you can zoom to Freight to select the most suitable carrier. Based on several factors, such as the invoicing method, item, freight class, service level, transport type and transport means group, the freight invoice amount is then retrieved from a rate book in Pricing. To retrieve a carrier, in the Sales Quotation Lines (tdsls1501m000) session, the Sales Order Lines (tdsls4101m000) session, or the Sales Order Delivery Lines (tdsls4101m100) session, take the following steps: Select the Invoice for Freight check box. Click the Freight Amount button behind the Freight Amount field. The Freight Rates (fmfrc0530m000) session starts. Select the most suitable carrier and service level combination, and click OK. After you made your selection from the Freight Rates (fmfrc0530m000) session, the following fields are automatically filled in the Sales Quotation Lines (tdsls1501m000), the Sales Order Lines (tdsls4101m000) session, or the Sales Order Delivery Lines (tdsls4101m100) session: Carrier/LSP Freight Service Level Freight Amount Rate and Carrier/LSP Selection at Order Line set to Cheapest or Prioritized During sales order/quotation entry or update, the carrier with the lowest rates or with the highest priority is automatically selected. ERP LN then automatically (re)calculates the freight invoice amount. Note If the Freight Amount Binding check box is selected in the Sales Quotation Lines (tdsls1501m000), Sales Order Lines (tdsls4101m000), or Sales Order Delivery Lines (tdsls4101m100) session, ERP LN only recalculates the Freight Amount if the ordered quantity changes. Other changes do not affect the freight amount. During confirmation of a final shipment, the freight amount is left unchanged. During confirmation of a non-final shipment, the freight amount is divided pro rata between the delivery lines. The freight amount is based on the ordered quantity and ordered amount, not the delivered quantity. If the Show Calculation Log check box is selected in the Sales Quotation Lines (tdsls1501m000), Sales Order Lines (tdsls4101m000), or Sales Order Delivery Lines (tdsls4101m100) session, you can view how the freight amount is calculated in a freight amount calculation log. Related topics Invoicing methods Freight rate retrieval To define freight rate books Freight rate book codes Integration sales and freight management Integration freight order control and sales control |