Setting Up Basic Information for Freight Charges

Delivery Management Setup Steps

Delivery management is required for both internal and external freight calculations. See the Setting Up Delivery Management section of this topic for instructions and setup steps. Set up the delivery management feature before using the freight charges feature.

See Setting Up Delivery Management.

Freight Bill Type

Specify which freight amount should be billed to the customer. The Populate Billing process (OMBILL) uses this field to determine which freight charge to send to PeopleSoft Billing to be placed on the customer's invoice. Whichever option you use, freight can be calculated or shopped in order entry, shipping, or both. Both freight amounts are maintained with the delivery. The Freight Bill Type options are:

• OrderEntry: The freight amount that is passed to PeopleSoft Billing is calculated or entered when the sales order is saved or during the Order Completion process; however, the freight charges are not passed until the order is shipped. The delivery that is automatically created for the entered sales order lines is used to calculate freight. OMBill sends these freight charges to PeopleSoft Billing to be placed on the customer's invoice. When you bill at order entry, you can only recalculate or override freight charges before the first demand line on that delivery ships. If you ship order lines within a delivery multiple times due to backorders or partial shipments, the full freight amount is charged with the first shipment. Using this option, you can initiate freight rating at shipment time; however, the new freight calculation is purely for information and comparison purposes.

• Shipping: The freight amount that is passed to PeopleSoft Billing is calculated or entered during the shipping process in PeopleSoft Inventory, including on the Shipping/Issues component, the Delivery Management Workbench, the Shipping Request process page, and any incoming Inventory Freight Response EIP transaction. Freight charges can also be calculated earlier in the fulfillment process. The delivery is used to calculate freight. Because this delivery has passed through most of the demand fulfillment steps, any backordered demand lines have been removed from the delivery or other changes have been made to the delivery before the freight calculation. OMBill sends these freight charges to PeopleSoft Billing to be placed on the customer's invoice.

The Freight Bill Type field is located at the customer level on the General Information - Bill To Options page. The Freight Bill Type is supplied by default to the sales order (header level) and then added to the delivery ID containing the sales order. The Freight Bill Type is stored in the IN_DELIVERY table (header level). Once a sales order line is on a delivery, you cannot change the value in the Freight Bill Type field on the sales order.

Freight Usage

Specify the type of freight calculation to be done in combination with the Freight Supplier field in the Carrier ID table. Options are:

• None: No freight calculation is performed.

• Internal: The internal freight calculator within the PeopleSoft application is used to apply freight charges to sales orders.

• External: A third-party freight provider calculates and provides the freight charges for sales orders. Manifest information can also be generated by the freight provider. This field value enables the PeopleSoft application to send and receive EIP freight transactions.

• Both: Either the PeopleSoft internal freight calculator is used or the third-party freight feature is used depending on the option chosen on the Carrier ID table Freight Supplier field. Therefore, based on the carrier ID on the delivery, either the PeopleSoft internal freight calculator or the third-party freight feature could be used. If no carrier ID is specified on the delivery, then the third-party freight feature is used.

The Freight Usage field is located on the Shipping and Returns page within the Order Management business unit definition and on the Setup Fulfillment - Delivery/Freight page. The Order Management business unit definition is used only for quote/order entry and batch order completion processing. The Freight Usage field located at the Inventory business unit level (Setup Fulfillment-Delivery/Freight page) is used only for the delivery management component and all Inventory fulfillment processing including shipping.

Freight Supplier and Carrier ID

The Freight Supplier field is located on the Carrier page (CARRIER_TBL). You can use a different freight solution depending on the carrier ID used on the delivery. Some of your carriers may be calculated with the internal PeopleSoft method while other carriers may use a third-party freight supplier. You can also use the Carrier page to define your individual carriers including name, address, taxpayer ID, and other information. The options for the Freight Supplier field are:

• External: Select to enable this carrier ID to integrate with a third-party freight provider. If the business unit freight usage is internal, no freight calculation occurs. If the business unit freight usage is external or both, third-party freight calculation occurs.

• Internal: Select to enable this carrier ID to use the PeopleSoft internal freight calculator. If the business unit freight usage is external, no freight calculation occurs. If the business unit freight usage is internal or both, internal freight calculation occurs.

• (blank): Select a blank field to prevent freight calculations with this carrier. No freight calculation occurs regardless of the business unit freight usage setting.

The carrier ID can be assigned to a delivery by:

• The system using the carrier from the first order schedule demand line added to the delivery.

• The third-party freight provider when it determines the best way to ship the delivery.

• The user performing rate-shopping with the third-party freight provider and selecting a carrier.

• The user manually assigning a carrier to a delivery.

The carrier ID can be defined within the Order Management default hierarchy on the Order Groups page, the customer's General Information - Ship To Options page, and the Buying Agreement Form-Header Terms page. In the default hierarchy, the more specific information overrides the more general information; in this case, a carrier ID defined on a buying agreement overrides a carrier ID on a customer and a carrier ID on the customer would override a carrier ID on the order group. You can manually override the default carrier ID value on the sales order schedule line by using the Ship To Header Details page (order level), the Ship Options 1 tab of the Order Entry Form page (line level), or the Order Entry Form-Shipment Schedule page (schedule level). The carrier ID value on the order schedules lines can flow to the delivery ID created.

Freight Terms Code

Determines whether the buyer or the seller pays the freight. Using the Cost/Insurance/Freight Paid By group box, select one of the following options:

• Buyer: If the buyer pays the freight, freight charges pass to PeopleSoft Billing. The Freight Bill Type field determines when the freight charges are passed to PeopleSoft Billing: at order entry or when the order is depleted from PeopleSoft Inventory.

• Seller: If the seller pays the freight, charges do not pass to PeopleSoft Billing.

The freight terms code can be defined within the Order Management default hierarchy on the Order Groups page, the customer's General Information - Ship To Options page, and the Buying Agreement Form-Header Terms page. In the default hierarchy, the more specific information overrides the more general information; in this case, a freight terms code defined on a buying agreement overrides a freight terms code on a customer and a freight terms code on the customer would override a freight terms code on the order group. The freight terms code that is supplied by default to the sales order schedule line can be manually overridden using the Ship To Header Details page (order level), the Ship Options 1 tab of the Order Entry Form page (line level), or the Order Entry Form-Shipment Schedule page (schedule level).

Freight Charge Method

Determines how the freight charges are allocated from the delivery-level to the sales orders within the delivery. For more information on this field, see Applying Freight Charges to Deliveries and Orders section of this topic.

See Applying Freight Charges to the Order Level.

Use Preferred Freight Carrier

Select Yes to indicate that the customer prefers a particular carrier. The delivery management feature uses this preferred carrier ID for freight calculations. When the delivery is created for demand lines with a preferred carrier, then the system assigns that carrier ID to the delivery or the system finds another delivery with the same carrier ID already assigned to it. The demand line is also flagged as preferred carrier so that other fulfillment steps will know that the customer has requested the carrier for freight.

The Use Preferred Freight Carrier field is located on several pages in the Order Management default hierarchy but it must always be used with the Carrier ID field on the same page. For example, to define a preferred carrier on the order group, you would select Yes in the Use Preferred Freight Carrier field and then enter the preferred carrier in the Carrier ID field of the same page. The Use Preferred Freight Carrier field cannot be set to Yes if the Carrier ID field is blank.

The Use Preferred Freight Carrier field and the Carrier ID field can be defined within the Order Management default hierarchy on the Order Groups page, the customer's General Information - Ship To Options page, and the Buying Agreement Form-Header Terms page. In the default hierarchy, the more specific information overrides the more general information; in this case, a preferred carrier defined on a buying agreement overrides a preferred carrier on a customer and a preferred carrier on the customer would override a preferred carrier on the order group. The values that are supplied by default to the sales order schedule line can be overridden manually by means of the Ship Options 1 tab and the Ship Options 2 tab of the Order Entry Form page (line level) or the Order Entry Form-Shipment Schedule page (schedule level). The delivery management feature uses this value from the sales order demand line to assign the preferred carrier to the delivery when the delivery is first created. The demand line is also set as preferred carrier to indicate to users downstream in the fulfillment process that the carrier ID has already been selected for the demand and is assigned specifically for freight. If the user sets the Use Preferred Freight Carrier field to Yes after the demand line has been put on a delivery ID and the carrier ID on the delivery is missing, then the system moves the schedule line to a new delivery. If the user manually overrides the carrier on an existing delivery, then the Use Preferred Freight Carrier field is automatically set to Yes.

Ship Via

Use the Ship Via code to define the dimensions of one or more delivery vehicles, such as small delivery truck, large truck, or boxcar. If the ship via code is used as a delivery key on the Inventory Definition - Business Unit Options: Delivery Management page, then the weight and volume constraints defined by the ship via code determine when a delivery has reached capacity and a new delivery ID must be created. For you to use ship via capacity constraints on a delivery, the individual items must contain weight and volume data on the Define Business Unit Item - Inventory: Weight/Volume page or the Define Item - General: Dimensions page. The Define Item - General: Dimensions page is used when the same fields are not defined on the Define Business Unit Item - Inventory: Weight/Volume page.

The PeopleSoft automatic delivery management logic in Order Management and Inventory uses the ship-via maximum constraint values for both weight and volume to determine when to automatically assign demand lines to a new delivery. When either the weight or volume maximum constraint is to be violated with the addition of a new demand line, the demand line is assigned to a new delivery. The automatic delivery management logic does not allow a delivery to exceed the maximum ship-via constraints. In order entry, the CSR also receives a warning when the minimum ship-via constraint has not been met.

For the third-party freight provider feature, the ship via code is used to define freight services.

The ship via code can be defined within the Order Management default hierarchy on the Order Groups page, customer's General Information - Ship To Options page, and the Buying Agreement Form-Header Terms page. In the default hierarchy, the more specific information overrides the more general information; in this case, a ship via code defined on a buying agreement overrides a ship via code on a customer and a ship via code on the customer would override a ship via code on the order group. The ship via code that is supplied by default to the sales order schedule line can be manually overridden by means of the Ship To Header Details page (order level), the Ship Options 1 tab of the Order Entry Form page (line level), or the Order Entry Form-Shipment Schedule page (schedule level).

Process Freight Charges

(Order entry only) Use the Order Entry Features page within the Order Management business unit definition to determine when freight charges should be calculated and applied to a sales order.

See Order Entry Features Page.

Freight Product ID and Miscellaneous Freight Charges

Freight charges can be passed to PeopleSoft Billing where they are added as bill lines on the customer's invoice. To record freight charges in PeopleSoft Billing, you must:

• Define a dummy product ID for freight charges.

• Enter the dummy product IDs to be used for freight charges on the Accounting and Billing page of the Order Management business unit definition or the Inventory Definition - Business Unit Options: Revenue and Billing Defaults page.

In addition, you can define another product ID for miscellaneous freight changes that you can manually enter using the Shipping/Issues component.

BI Unit

On the Order Management Definition - Order Management Setup page, enter the PeopleSoft Billing business unit to be used for invoicing the sales order of this Order Management business unit.

Weight and Volume of Items

Use the Define Business Unit Item - Inventory: Weight/Volume page to define the weight and volume of the item. If no value is entered, then the system uses the item weight and volume on the UOM Weight/Volume page (Items, Define Items and Attributes, Units of Measure, click the UOM Weight/Volume link). If no value is entered on the UOM Weight/Volume page, then the system uses the item weight and volume on the Define Item - General: Dimensions page.

Freight Rollup

Determines which freight charges are picked up and applied to the delivery. For more information on this field, see Applying Freight Charges to Deliveries and Orders section of this topic.

See Receiving Freight Charges.