Freight Cost Management

The transportation of materials to manufacturing facilities and the distribution of goods to customers are the largest costs incurred by manufacturing and distribution companies. Managing those costs effectively is critical to the profitability of those companies.

You assign freight costs to cost objects to perform profitability analysis, which provides management with the information needed to make freight-related decisions.

Freight cost management is a three-step process:

1. Assign freight costs to cost objects.

2. Track freight variance by cost object.

3. Add freight costs to sales orders.