Using Deliveries with Freight Charges

To calculate internal freight charges at order entry, deliveries must be created. Deliveries enable you to group order schedules logically with the same shipping information so that freight charges can be calculated accurately. You can have multiple freight methods such as weight, volume, value, and quantity for each sales order, but each delivery can have only one freight method. The system automatically manages the deliveries for you on the sales order.

Note:

In PeopleSoft Order Management, you must have one freight charge method for each delivery, but you can have multiple deliveries for each sales order. At shipment in PeopleSoft Inventory, there can be only one freight charge method per sales order within a single shipment.

If a schedule qualifies to become part of an existing delivery, the system verifies that the freight charge method on the new schedule matches the default value from the buying agreement, sold to customer, or order group:

• If the freight charge method matches, the system adds the schedule to the delivery.

• If the freight charge method does not match, the system automatically creates a new delivery for the schedule.

  The freight charge method determines which value the system uses to find the appropriate freight breaks.

To calculate internal freight, the system evaluates the delivery as it is added to the order and determines the freight sets and resulting charges that apply to the delivery. To get the total freight charges for the delivery, the system adds up the freight charges on all freight breaks applied to the delivery. The system then adds up the sums of the delivery freight charges, to get the total freight charge for the order.

After calculating the freight charges, the delivery, delivery freight charges, and total order freight charges appear for the entire order. To change or override the total freight charge for the order or to not charge the customer freight for the order, you enter a different amount or zero for the freight charges on each delivery of the order on the Freight Charges page.

If you are using the single shipment option, freight can only be changed at the order header level. When the Populate Billing process (OM_BILL) is run, the freight amount is picked up and passed to PeopleSoft Billing on the first shipment of the order. In the case of multiple shipments for an order, the total freight amount is charged and billed on the first invoice. A flag is set on the Delivery table to indicate that freight has already been billed, so it will not be billed again with subsequent shipments for the order. If the seller pays for freight, no freight charges are passed to PeopleSoft Billing; however, the estimate for freight charges at order entry is still calculated and can be used for your own analysis.

Freight charges are passed to third-part suppliers. The suppliers determine if any tax is applicable to the freight charges.

If you are using credit card processing, the Order Repricing process reprices orders and includes the freight amount and the new price in the credit card amount stored at the order header level.