PeopleSoft Supply Chain Management Common Information 9.1 PeopleBook

Using the Internal PeopleSoft Freight Calculator

This chapter provides an overview of internal and manual freight charges and discusses how to set up the PeopleSoft internal freight calculator.

Understanding Internal Freight Charges

Internal freight calculation is freight that is calculated using the PeopleSoft freight definitions. Alternatively, you can integrate with a third-party freight provider to calculate your sales order and shipping freight. Internal freight can be calculated in the sales order or quote in PeopleSoft Order Management or in demand fulfillment in PeopleSoft Inventory, including shipping. Whether performing internal or external freight calculation, you can also manually enter freight amounts in PeopleSoft Order Management or in PeopleSoft Inventory. This chapter discusses the setup of PeopleSoft Order Management and Inventory to internally calculate freight charges. For quotes or sales orders, you can add freight costs during quote or order entry in PeopleSoft Order Management or you can add freight costs during the packing and shipping stages of PeopleSoft Inventory.

Setting Up the PeopleSoft Internal Freight Calculator

Deliveries are used to pass data to the internal freight calculator and calculate the freight charges. With internal freight, freight is calculated only at the delivery level. The field values within the delivery ID determine how freight charges are calculated. The delivery field values that are captured and used to determine a delivery are defined in the delivery key configuration setup for the Inventory business unit. A few required key values exist, such as inventory business unit and scheduled ship date. Other values can be configured for each business unit. In PeopleSoft Order Management and Inventory, deliveries can be automatically created by the system.

Understanding Freight Charges Documentation

The documentation for freight setup has been divided into three parts:

Basic Setup: This section discusses the freight setup steps that are needed for all freight configurations. This section must be complete before the setup steps for the internal freight calculator.

See Setting Up Basic Information for Freight Charges.
External Third-Party Setup: This section discusses the additional setup steps needed to integrate PeopleSoft with a third-party freight provider. Basic setup is also required.

See Setting Up External Third-Party Freight Charges.
Internal Freight Calculator Setup: This section discusses the additional setup steps to use the PeopleSoft internal freight calculator. Basic setup is also required. The following section discusses these setup steps.

Setup Steps for the PeopleSoft Internal Freight Calculator

This section discusses the setup steps needed to use the PeopleSoft internal freight calculator to add freight charges on your sales orders. In addition to the setup discussed in this section, you must complete the basic setup steps for freight charges located in the Setting Up Delivery Management and Freight Calculations chapter of this PeopleBook.

The following diagram displays the setup steps for the PeopleSoft internal freight calculator.

Setup steps for the PeopleSoft internal freight calculator

Setup steps include:

Delivery Management Setup Steps	Delivery management is required for both internal and external freight calculations. See the "Setting Up Delivery Management and Freight Calculations" chapter of this PeopleBook for instructions and setup steps. Complete the setup for the delivery management feature before using the freight charges feature. See Setting Up Delivery Management.
Basic Freight Setup Steps	To enable the PeopleSoft internal freight calculations, you must also complete the setup of the basic information for freight charges. See the "Setting Up Delivery Management and Freight Calculations" chapter of this PeopleBook for instructions and setup steps. See Setting Up Basic Information for Freight Charges.
Freight Rule Code	Identifies the arbitration plan ID for calculating freight. This field determines how the system applies freight rules and freight formulas when calculating freight charges internally. This field is on the Inventory Definition - Business Unit Options: Shipping Options page and applies only to sales orders.
Freight Rule/Freight Formulas	Freight rules and freight formulas define the freight charges that can be applied to a delivery ID. A freight charge can be a flat amount or a percentage of value of the delivery. Defining freight charge as a percent of the delivery value is available only for internal freight calculation in order entry.
Arbitration Plan	Use the arbitration plan for freight and transportation to define which freight rule is selected and applied to the delivery ID. If more than one freight rule matches the delivery values, the first rule, prioritized based on the arbitration plan, is applied to the delivery.

Pages Used to Set Up the PeopleSoft Internal Freight Calculator

Page Name	Definition Name	Navigation	Usage
Inventory Definition - Business Unit Options: Shipping Options	BUS_UNIT_INV2	Set Up Financials/Supply Chain, Business Unit Related, Inventory, Inventory Definition, Business Unit Options Click the Shipping Options link.	Enter the freight arbitration plan and the freight charge method to be used for this inventory business unit for calculating PeopleSoft internal freight charges.
Order Groups	ORD_GROUP	Set Up Financials/Supply Chain, Product Related, Order Management Foundation, Order Groups	(optional) Define the freight charge method for the order group level.
General Information - Sold To Options	CUST_SOLDTO_OPT	Customers, Customer Information, General Information Select the Sold To Option tab.	Define the freight charge method for the customer.
Buying Agreements - Header Terms	SCON_HDR_TRMS	Order Management, Buying Agreements, Create/Update Buying Agreement Select Terms in the Header menu field on the Buying Agreement Form page.	(optional) Define the Freight Charge Method field for a buying agreement.
Arbitration Plan	TRFT_RULE_CD	Set Up Financials/Supply Chain, Common Definitions, Shipping and Receiving, Freight and Transportation, Arbitration Plan	Establish arbitration plans for freight charges. The freight arbitration plan determines the sequence in which the system searches for and applies freight charges to a delivery. The arbitration plan is entered into the Freight Arbitration Plan field on the Inventory Definition - Business Unit Options: Shipping Options page and is used for internal freight calculations for sales orders.
Freight Formulas	TRFT_FRT_BREAK	Set Up Financials/Supply Chain, Common Definitions, Shipping and Receiving, Freight and Transportation, Rule Entry Click the Define Freight button.	Using the freight charge method, enter the freight charges to be applied to a delivery. Freight formulas are defined within a freight rule. Freight rules are applied to a sales order delivery based on the arbitration plan and the freight charge method used.