Working with Freight Exempt Items (WFEI)

Purpose: Use Work with Freight Exempt Items to exclude items or specific SKUs for an item from freight charges.

You may wish to exclude certain items, such as gift certificates, memberships or subscriptions, which do not have any freight costs. Also, if the price of an item already includes the cost of freight, you might wish to exclude the item from freight so that you do not charge the customer for freight twice.

In this topic:

• Freight Exempt Items Setup

• System Control Values

• Eligible Freight Methods

• Flagging an Item as Freight Exempt

• Flagging a SKU as Freight Exempt

• Freight Exempt Level: Item or SKU

• Freight on Pick Slips?

• Freight Exempt Items Processing

• Use Item Freight Exemption File (E73) Selected?

• Eligible Freight Method on Order?

• Item on Order Defined in Work with Freight Exempt Items (WFEI)?

• Freight Exempt Hierarchy

• Freight Exempt Hierarchy Example

• Freight Exemption and Extra Charges

• Freight Exempt Item Example

• Work with Freight Exempt Items Screen

• Create Freight Exempt Item Screen

• Change Freight Exempt Item Screen

• Display Freight Exempt Item Screen

Freight Exempt Items Setup

Before you can exclude items from freight, you must perform the required setup.

• System Control Values

• Eligible Freight Methods

• Flagging an Item as Freight Exempt

• Flagging a SKU as Freight Exempt

• Freight Exempt Level: Item or SKU

• Freight on Pick Slips?

System Control Values

System Control Value	Description
Use Item Freight Exemption File (E73)	Enter Y in this field if you want the system to exclude items from freight. Any item defined as freight exempt in the Working with Freight Exempt Items (WFEI) menu option is not included in the freight calculation.
Include Handling in Freight Charge Calculation (D77)	Enter Y in this field if you want to include handling charges in the total dollar amount on an order subject to freight charges. If this system control value is selected and a freight exempt item has a handling charge, the handling charge is not included in the freight calculation.

Eligible Freight Methods

You can exclude items from freight on orders using the following order level freight methods, as defined in Working with Source Codes (WSRC). See Introducing Offer and Source Codes for more information about each freight method.

Freight Method	Description
Dollar chart by offer ($O) freight	Calculates freight based on the selling prices of the merchandise ordered for each shipping address on an order using a freight chart set up for the offer. See Dollar chart by offer ($O) freight.
Dollar chart by source ($S) freight	Calculates freight or service charges based on the selling prices of the merchandise ordered for each shipping address on an order using a freight chart set up for the source. See Dollar chart by source ($S) freight.
Pre-discount dollar chart by offer (DO) freight	Calculates freight based on the pre-discount prices of the merchandise ordered for each shipping address on an order using a freight chart set up for the offer. See Pre-Discount $ Chart/Offer (DO) freight.
Pre-discount dollar chart by source (DS) freight	Calculates freight based on the pre-discount prices of the merchandise ordered for each shipping address on an order using a freight chart set up for the source. See Pre-Discount $ Chart/Source (DS) freight.
Recipient (R) freight	Calculates freight by dollar based on the merchandise total of the order including all recipient orders. If the number of recipients on the order exceeds the Maximum number of ship to’s for the source code, the Dollar Chart by Offer determines the freight fee based on the merchandise total. Once the maximum number of recipient orders is reached, the system includes a flat amount with the freight amount for each additional recipient order. See Recipient (R) freight.
Percentage by source (PS) freight	Multiplies the merchandise amount of the order by a freight percentage defined for the source code. This method also considers the freight minimum and freight maximum defined for the source code. The system adjusts the freight fee to the maximum or minimum charge if the calculation results in a freight fee over or under the maximum or minimum value. See Percentage by source (PS) freight.
Percentage by ship via (PV) freight	Multiplies the merchandise amount of the order by freight percentage defined for the shipper. This method also considers the freight minimum and freight maximum defined for the shipper. The system adjusts the freight fee to the maximum or minimum charge if the calculation results in a freight fee over or under the maximum or minimum value. See Percentage by ship via (PV) freight.
By Offer Price (OP) freight	Uses a dollar chart by offer to calculate freight, based on the total merchandise value of the order. For this freight method, the merchandise value is calculated by adding the extended single-unit offer price for each item/SKU, disregarding any discounts, associate pricing, price overrides, quantity break pricing, etc. Prorate freight? If the Prorate Freight Charges (D39) system control value is set to Y, freight is prorated based on the percentage of the merchandise total shipped, rather than on the appropriate level on the dollar chart. See the Prorate Freight Charges (D39) system control value for examples. See By Offer Price (OP) freight.
Freight by order weight (OW) freight	This freight method is based on the total weight of the order and the number of cartons required to ship the order. The system uses the following information to calculate freight: • the total weight of the items. • the maximum weight you can pack in each carton. • the extra weight to add for each carton. The system calculates the total number of cartons required to ship the order and the expected weight of each using the above information. The system then uses the freight table for the source code to calculate the rate to charge for each carton. If the item is a ship-alone item, the system determines the weight for each unit and adds an extra weight amount before checking the freight table. See Fulfillment Working with Weight Tables for Order Weight (WFTB) for more information on how to define freight tables and examples of how this freight method is calculated. See Freight by order weight (OW) freight.

Flagging an Item as Freight Exempt

Use the Working with Freight Exempt Items (WFEI) menu option to define which items are exempt from freight charges. You can flag an item as freight exempt at the offer level, source code level, SKU level, or item level.

To flag an item and all of its SKUs as freight exempt across all offers and source codes: At the Create Freight Exempt Item Screen, enter the Item and leave the SKU, Offer, and Source fields blank.

To flag an item and all of its SKUs as freight exempt at the source code level: At the Create Freight Exempt Item Screen, enter the Item and Source. Leave the Offer and SKU blank. The item is exempt from freight only if the specified source code is defined on the order header. Note: The system does not look at the source code at the order line level to determine if the item is exempt from freight.

To flag an item and all of its SKUs as freight exempt at the offer level: At the Create Freight Exempt Item Screen, enter the Item and Offer. Leave the Source and SKU blank. The item is exempt from freight only if the specified offer is associated with the source code on the order header. Note: The system does not look at the offer code at the order line level to determine if the item is exempt from freight.

To flag an item as freight exempt at the SKU level: At the Create Freight Exempt Item Screen, enter the Item and SKU. Leave the Source and Offer blank. The item is exempt from freight only if the specified SKU is on the order line. See Flagging a SKU as Freight Exempt for more information.

Flagging a SKU as Freight Exempt

Use the Working with Freight Exempt Items (WFEI) menu option to define which items or specific SKUs for an item are exempt from freight charges.

To flag an item/SKU as freight exempt:

1. At the Create Freight Exempt Item Screen, enter a valid item in the Item field.

2. If the item has SKUs:

• Leave the SKU field blank if the item does not contain SKUs or you wish each SKU of the item to be exempt from freight.

• Enter a valid SKU for the item if you wish a specific SKU of the item to be exempt from freight. All other SKUs of the item that are not defined in the Work with Freight Exempt Items (WFEI) menu option are not exempt from freight.

See Freight Exempt Level: Item or SKU for more information on how to exclude an item from freight at the item level or SKU level.

3. Enter a valid offer in the Offer field if you want to identify an offer where the item/SKU is exempt from freight, or

4. Enter a valid source code in the Source field if you want to identify a source code where the item/SKU is exempt from freight, or

5. Leave the Offer and Source fields blank to make the item/SKU exempt from freight on all orders. You cannot enter both an offer and source for an item.

6. Press Enter. The system validates your entries and highlights any fields you need to correct. Correct and fields and press Enter again.

A message indicates that the item freight exemption has been created.

Freight Exempt Level: Item or SKU

If an item contains SKUs, you can decide whether to exclude the item from freight at the item level or SKU level.

• If you add the item as freight exempt and do not specify a SKU, all of the SKUs for the item are freight exempt.

• If you add the item as freight exempt and specify a SKU, only those SKUs specified are freight exempt. Any SKU not specified in the Work with Freight Exempt Items (WFEI) menu option is included in the freight calculation.

Example: Flagging Items as Freight Exempt at the Item or SKU Level

The following items are defined in the Work with Freight Exempt Items (WFEI) menu option.

Item	SKU	Offer	Source
ITEM1			554
ITEM2			500
SKU1	RED
SKU1	BLUE		500
SKU2

You add the following items to an order. The source code on the order is 554.

Item	SKU	Freight Exempt Results
ITEM1		Because ITEM1 exists in Work with Freight Exempt Items (WFEI) for source code 554, the system does not include the item in the freight calculation.
ITEM2		Because ITEM2 exists in Work with Freight Exempt Items (WFEI) for source code 500, the system includes the item in the freight calculation.
SKU1	RED	Because SKU1 RED exists in Work with Freight Exempt Items (WFEI) and a specific offer or source code is not defined, the system does not include the item in the freight calculation.
SKU1	BLUE	Because SKU1 BLUE exists in Work with Freight Exempt Items (WFEI) for source code 500, the system includes the item in the freight calculation.
SKU2	GRN	Because SKU2 exists in Work with Freight Exempt Items (WFEI) without a specific SKU, offer or source code defined, the system includes the item in the freight calculation.

Freight on Pick Slips?

There is no freight charge on a pick slip, even if there are non-freight exempt items on the order, under the following conditions:

• the Prorate Freight Charges (D39) system control value is set to N

• the Use Item Freight Exemption File (E73) system control value is set to Y

• the pick slip includes only freight exempt items

• the order uses one of the freight methods listed above

Freight Exempt Items Processing

When you add an item to an order in regular order entry or receive an order through the Generic Order Interface (Order API) the system uses the following steps to determine if the item is excluded from freight.

• Use Item Freight Exemption File (E73) Selected?

• Eligible Freight Method on Order?

• Item on Order Defined in Work with Freight Exempt Items (WFEI)?

• Freight Exempt Hierarchy

• Freight Exemption and Extra Charges

• Freight Exempt Item Example

Use Item Freight Exemption File (E73) Selected?

The system checks the setting of the Use Item Freight Exemption File (E73) system control value.

• If set to N, items/SKUs defined in the Working with Freight Exempt Items (WFEI) menu option are included in the freight calculation.

• If set to Y, items/SKUs defined in the Working with Freight Exempt Items (WFEI) menu option are exempt from freight.The system continues to the next step.

Eligible Freight Method on Order?

The system determines if the freight method on the order is eligible for freight exempt items. You can exclude items from freight on orders using the following order level freight methods:

• Dollar chart by offer ($O) freight

• Dollar chart by source ($S) freight

• Recipient (R) freight

• Percentage by source (PS) freight

• Percentage by ship via (PV) freight

• By Offer Price (OP) freight

• Freight by order weight (OW) freight

If the order does not use one of these freight methods, the system includes the items on the order in the freight calculation.

if the order uses one of these freight methods, the system excludes the freight exempt items on the order from the freight calculation. The system continues to the next step.

Item on Order Defined in Work with Freight Exempt Items (WFEI)?

The system determines if the item added to the order is defined in the Work with Freight Exempt Items (WFEI) menu option.

• If the item is not defined in Work with Freight Exempt Items (WFEI), the system includes the item in the freight calculation.

• If the item is defined in Work with Freight Exempt Items (WFEI), the system continues to the next step.

Freight Exempt Hierarchy

If the item qualifies for freight exemption (see Use Item Freight Exemption File (E73) Selected?, Eligible Freight Method on Order?, and Item on Order Defined in Work with Freight Exempt Items (WFEI)?), the system uses the following hierarchy to determine how the item is exempt from freight.

1.	Offer level: If an offer is defined for the item on the Work with Freight Exempt Items Screen, the item is exempt from freight only if the specified offer is associated with the source code on the order header. Note: The system does not look at the offer code at the order line level to determine if the item is exempt from freight. In addition: • If a SKU is defined for the item on the Work with Freight Exempt Items Screen, the item is exempt from freight only for those SKUs specified. • If a SKU is not defined for the item on the Work with Freight Exempt Items Screen, the item is exempt from freight across all SKUs. See Freight Exempt Level: Item or SKU for more information on how to set up freight exempt items at the item or SKU level.
2.	Source code level: If a source code is defined for the item on the Work with Freight Exempt Items Screen, the item is exempt from freight only if the specified source code is on the order header. Note: The system does not look at the source code at the order line level to determine if the item is exempt from freight. In addition: • If a SKU is defined for the item on the Work with Freight Exempt Items Screen, the item is exempt from freight only for those SKUs specified. • If a SKU is not defined for the item on the Work with Freight Exempt Items Screen, the item is exempt from freight across all SKUs. See Freight Exempt Level: Item or SKU for more information on how to set up freight exempt items at the item or SKU level.
3.	SKU level: If an offer or source code is not defined for the item on the Work with Freight Exempt Items Screen, but a SKU is specified, then only those SKUs specified for the item are exempt from freight. See Freight Exempt Level: Item or SKU.
4.	Item level: If an offer, source code, or SKU is not defined for the item on the Work with Freight Exempt Items Screen, then the item is always exempt from freight. If the item is a SKU’d item, all of the SKUs for the item are exempt from freight.

Freight Exempt Hierarchy Example

The following items are defined in the Working with Freight Exempt Items (WFEI) menu option.

Item	SKU	Offer	Source	Results
ITM1				When you add ITM1 to an order, the item is always excluded from the freight calculation. If the item is a SKUed item, all SKUs for the item are excluded from the freight calculation.
ITM2	RED			When you add ITM2 to an order, the item is excluded from the freight calculation only if SKU RED is ordered. If you order a different SKU, the item is included in the freight calculation.
ITM3		7		When you add ITM3 to an order, the item is excluded from the freight calculation only if the source code on the order header is associated with offer 7.
ITM4			S7	When you add ITM4 to an order, the item is excluded from the freight calculation only if the source code on the order header is S7.
ITM5	BLUE	7		When you add ITM5 to an order, the item is excluded from the freight calculation only if: • the SKU ordered is BLUE, and • the source code on the order header is associated with offer 7.
ITM6	GRN		S7	When you add ITM6 to an order, the item is excluded from the freight calculation only if: • the SKU ordered is GRN, and • the source code on the order header is S7.

Freight Exemption and Extra Charges

Ship via additional charges: Any additional charges associated with a ship via, such as service charges or charges for a federal express service, are still added to an order even when the order contains only freight exempt items.

Extra recipient charges: Extra recipient charges are not added to an order if the recipient has only ordered a freight exempt item.

Handling charges: If the Include Handling in Freight Charge Calculation (D77) system control value is selected and a freight exempt item is defined with a handling charge, the handling charge is not included in the freight calculation.

Freight Exempt Item Example

The following items are defined in the Working with Freight Exempt Items (WFEI) menu option.

Item	SKU	Offer	Source
ITM1		7
ITM2			S7
ITM3	BLUE	7
ITM4	GRN		S7

You create an order with the following information:

Order Header: source code = S7
Order Detail:
Line 1	ITM1	Line 1 is exempt from freight because ITM1 is defined in Working with Freight Exempt Items (WFEI) and source code S7 on the order header is associated with offer 7.
Line 2	ITM2	Line 2 is exempt from freight because ITM2 is defined in Working with Freight Exempt Items (WFEI) and source code S7 is on the order header.
Line 3	ITM3 RED	Line 3 is not exempt from freight because ITM3 RED is not defined in Working with Freight Exempt Items (WFEI).
Line 4	ITM4 RED	Line 4 is not exempt from freight because ITM4 RED is not defined in Working with Freight Exempt Items (WFEI).

Work with Freight Exempt Items Screen

Purpose: Use this screen to work with freight exempt items.

How to display this screen: Enter WFEI in the Fast path field at the top of any menu or select Work with Freight Exempt Items from a menu.

OER0972 DISPLAY Work with Freight Exempt Items 2/11/09 16:11:30 KAB Co2 Karen Bottger Company Opt Item COLO STYL SIZE Description Offer Source Type options, press Enter. 2=Change 4=Delete 5=Display ITEM ITEM DESCRIPTION SKU GREY SKU ITEM DESCRIPTION 554 SKU RED WMNS SMLL SKU ITEM DESCRIPTION 554 F3=Exit F6=Create F12=Cancel F21=Print List F24=Select Company

Field	Description
Item	An item defined as freight exempt. Alphanumeric, 12 positions; optional.
SKU	The SKU of the item that is defined as freight exempt. • If a SKU is defined, only the SKU specified is freight exempt. • If a SKU is not defined, all SKUs for the item are freight exempt. Alphanumeric, one 12-position field or three 4-position fields; optional.
Description	The description of the item. Alphanumeric, 35 positions; display-only.
Offer	The offer in which the item is exempt from freight. This if the offer associated with the source code on the order header; the system does not look at the offer code at the order line level to determine if the item is exempt from freight. Alphanumeric, 3 positions; optional.
Source	The source in which the item is exempt from freight. This is the source code on the order header; the system does not look at the source code at the order line level to determine if the item is exempt from freight. Alphanumeric, 9 positions; optional.

Screen Option	Procedure
Change a freight exempt item	Enter 2 next to a freight exempt item to advance to the Change Freight Exempt Item Screen.
Delete a freight exempt item	Enter 4 next to a freight exempt item to delete it.
Display a freight exempt item	Enter 5 next to a freight exempt item to advance to the Display Freight Exempt Item Screen.
Create a freight exempt item	Press F6 to advance to the Create Freight Exempt Item Screen.

Create Freight Exempt Item Screen

Purpose: Use this screen to define an item as exempt from freight.

See Flagging an Item as Freight Exempt for instructions on how to create a freight exempt item.

How to display this screen: Press F6 on the Work with Freight Exempt Items Screen.

OER1533 ENTER Create Freight Exempt Item 2/11/09 16:48:38 KAB Co2 Karen Bottger Company Item . . . . COLO STYL SIZE Offer . . . Source . . . F3=Exit F12=Cancel

Field	Description
Item	The item you wish to exempt from freight. Items are defined in and validated against the Item file. Alphanumeric, 12 positions. Create screen: required. Change screen: display-only.
SKU	The SKU of the item that you wish to exempt from freight. • If a SKU is defined, only the SKU specified is freight exempt. • If a SKU is not defined, all SKUs for the item are freight exempt. Alphanumeric, one 14-position field or three 4-position fields. Create screen: optional. Change screen: display-only.
Offer	The offer in which the item is exempt from freight. There is no freight for the item if this source code is associated with the source code on the order header. Offer codes are defined in and validated against the Offer file. See Marketing Working with Offers (WOFR). Alphanumeric, 3 positions; optional.
Source	The source code in which the item is exempt from freight. There is no freight for the item if this is the source code on the order header. Source codes are defined in and validated against the Source Code file. See Marketing Working with Source Codes (WSRC). Alphanumeric, 9 positions; optional.

Change Freight Exempt Item Screen

To change: Enter 2 next to a freight exempt item at the Work with Freight Exempt Items Screen to advance to the Change Freight Exempt Item screen. You can change the Offer or Source fields on this screen. See Create Freight Exempt Item Screen for field descriptions.

Display Freight Exempt Item Screen

To display: Enter 5 next to a freight exempt item at the Work with Freight Exempt Items Screen to advance to the Display Freight Exempt Item screen. You cannot make any changes to this screen. See Create Freight Exempt Item Screen for field descriptions.