Understanding the Freight Update Process

Freight update is the process of writing freight charges to the appropriate accounts. You can update freight charges for both shipments and loads. You update freight after a shipment or load has been confirmed and delivered or after a disposition has been recorded for a load.

Use the Freight Update and Report program (R4981) to transfer billable charges, including freight charge tax if applicable, to orders in the JD Edwards EnterpriseOne Sales Order Management system and to move the payable freight that is charged to you by carriers to the JD Edwards EnterpriseOne Accounts Payable system or general ledger as accrued freight. When you update freight charges, the system writes journal entries to the general ledger and writes pay items to the JD Edwards EnterpriseOne Accounts Payable system for those carriers with Auto Pay checked on the Carrier Master (P4906).

This diagram illustrates the integrated update process between Sales Order Management and Transportation Management:

When you update freight, you create records of final payable and billable freight charges, including freight charge tax if applicable, for shipments and loads. The system writes payable charges to the general ledger by a journal entry and to the accounts payable system for auto-pay carriers by a pay item. The system adds billable charges to one or more orders on the shipment or load depending on the customer freight preference.

You run the Freight Update and Report program (R4981) by either origin depot or by owning branch. Depending on processing options and system setup values, the system creates an invoice either for each carrier or by carrier and invoice date. You can run the freight update by the general ledger date, system date, or a date that you select.

You can summarize freight costs. These examples illustrate how to summarize freight costs:

You can set up the carrier to summarize payable freight.
You can set up customer freight preferences to summarize billable freight.
You can summarize freight by charge code onto one line in a sales order.
You can summarize freight charges when you print the appropriate documents.
The system can summarize freight within an account number or within a document in the general ledger and in the JD Edwards EnterpriseOne Accounts Payable system.

Note: (Release 9.2 Update) When the Freight Update and Report program (R4981) is run, the system creates a new line number for billable freight at the end of the sales order. For orders with multiple shipments, a new line for billable freight is created at the end of each shipment. For shipments with multiple orders, a new line for billable freight is created at the end of first order.