estimated freight cost issue

[cathy_liang]

Hi experts,

To ensure good selling price in quotation, the client wants to know every product's estimated freight cost. However, those products are customized & kit sales.

Q1: If the estimated freight cost is based on every product, it causes much workload. Any better solutions?

Q2: How to calculate the reasonable estimated freight cost? As shipment is not used in the system, the estimated freight cost has to be calculated manually. When quotating, no one is sure which type of truck will be used. If assuming every product based on 3 types of trucks have different estimated freight cost, it causes more and more workload, for e.g., manual calculation, system operation (VK11).

ps. There're 3 types of trucks: 40', 35', 20'. The calculation of freight cost is mostly based on the type of truck used, product's volume, the distance, full container loading or not.

Plz help. Many thanks.

[Shiva_Ram · Accepted solution]

Hi,

It looks your client needs to set-up a transport planning department or atleast needs to buy a customized transport planning software, which can be integrated with SAP. I am not sure whether SAP transportation module would help on this.

Q1: If the estimated freight cost is based on every product, it causes much workload. Any better solutions?

The frieght cost is purely based on weight/volume of a product. So if the cost is defined for weight/volume base, then you can get the estimated frieght value. This way, the user need not bother about individual product frieght costing. All the need to do is maintaining the relevant data in the material master.

Q2: How to calculate the reasonable estimated freight cost? As shipment is not used in the system, the estimated freight cost has to be calculated manually. When quotating, no one is sure which type of truck will be used. If assuming every product based on 3 types of trucks have different estimated freight cost, it causes more and more workload, for e.g., manual calculation, system operation (VK11).

Depending on the decision made by the customer, like if they go with a transportation planning software, then from the software the frieght cost for all the three types of trucks can be obtained. I would not mind printing freight cost text in the quotation as "Frieght cost varies based on container size" and print the range of the cost.

Regards,

[Former Member]

Please try this:

1: Create a freight material and use item category as non stock (DLX).

2: Create a frieght condition type as Condition class A and calculation type D or E .

3: Add the frieght condition type to your pricing procedure.

4: you will have to work on the pricing procedure to accomadate this change. may be you will need to have a new Alt Cond base value formula and assign it to your price conditions, so that when the item category is DLX, the price conditions value will be zeroed and only the value of the freight condition will apply and tax will be calculated only for the freight value.

Create the condition record for your freight condition for the frieght material as per your requirement. May be you can mainatin scales per weight.

Hope this helps

Regards

Sai

[cathy_liang]

Hi the experts,

How about the distance if not configuring shipment? U know, different delivery distance affects freight cost. Currently, the client has a formula to calculate frieight cost for 3 types of truck. As long as the distance is entered, say 1000 kilometre, the fornula can calculate a freight cost which includes insurance charge, oil fee, and so on.

If configuring shipment, how to map it in the system?

ps. This is a domestic transportation.

[Former Member]

Hi Cathy,

Might be you can try doing these . Make your variable component as Condition group 1 ,2 ,3 ( type of truck, product volume (0-10,10-20 etc),Container load. and distance will be based on your incoterms 2

Now create a condition table by taking these into consideration and create access sequence and than assign it to frieght condition type .

Now maintain condition record based on these combination as one time activity.

Now user will select in the sales order at item level different condition group values ( no. of truck, produt volume etc) and the prices will be picked up automatically in sales order.

Regards,

Krishna O