22 Overview to Freight Calculation

This chapter contains these topics:

22.1 Objectives

  • To understand freight calculation and how it fits into the overall load and delivery process

  • To calculate customer and supplier freight

  • To submit freight programs interactively or to batch processing

  • To review billable and payable freight charges

22.2 About Freight Calculation

As part of your load and delivery management operations, you can calculate freight charges to customers and calculate freight charges to pay your suppliers. The system allows you to specify a fee based on a fixed-fee freight rate, on a geographical zone, on distance traveled, or any combination of these. Freight information can be stored to allow you to compare billable and payable freight charges.

22.2.1 What Are the Types of Freight Charges?

The system calculates three types of freight charges. For each type, you set up the quantities and rates that the system uses to calculate the freight charges.

Freight Charge Description
Zone-based freight This calculation establishes freight rates based on the source depot and the destination of the goods (delivery zone). You associate zone numbers, representing geographic locations, with quantity-based rates.
Distance-based freight This calculation establishes freight rates using distance, quantity, or both.
Fixed-fee freight This calculation establishes fixed-fee freight rates.

22.2.2 Before You Begin