Freight Issue

[Former Member]

Hi Experts

Please suggest a solution to the scenario mentioned below.

We follow the normal sales process of order/delivery/billing. Say we are sending 25 tons of material to the customer, so we raise an order of 25 tons, do the delivery for 25 tons and subsequently invoice for 25 tons. The material is sent on prepaid basis i.e the customer is charged for freight in the invoice. The material is sent to the customer usually by Truck/lorry.

Assuming the total capacity of the truck to be 30 tons, then the owner/vendor of the truck always charges on the basis of the total capacity of the truck, irrespective of whether we send 10, 20 0r 25 tons.

So in our scenario since we are delivering only 25 tons, the picking also will be done for 25 tons, PGI for 25 tons and subsequently invoicing for 25 tons. So the freight value for 25 tons is captured in the invoice. We want to capture the freight value for the remaining 5 tons in the invoice. Presently we are raising a debit memo to the customer for the difference amount (i.e for the freight value of 5 tons).

_Constraints: This has to be done through the automatic route, i.e the user dosen't want to do any manual entry (Absolutely no manual entry permitted) during invoicing. The user will just see the value of the invoice and save it, i.e all the values has to be captured by maintaining condition records.

So we cannot use any header conditions to solve the problem.

The value for the difference of 5 tons freight has to flow automatically in the invoice. We can maintain the total capacity of the truck somewhere say in the delivery header - shipment tab - gross weight field, the net weight field will be the summation of all the items in the delivery which in this case will be 25 tons. so that the difference of freight not charged can be taken from the delivery header.

So please recommend a solution to the above problem.

Thanks & best regards

satish

[jignesh_mehta3]

Dear Sathish,

Good to see you describing the issue in detailed manner.

Assuming that you create a single Invoice for every dispatch & every dispatch involves only one Truck.

A simple solution to your issue is currently your Freight Condition is based on Quantity of Material in Sales Order / Invoice. Instead of this make is Lumpsum.

Then maintain the Condition Record accordingly (for rate of one Truck).

Thus whenever you prepare a Sales Order / Invoice, system will pick the rate of whole Truck, irrespective of the quantity involved.

Hope this helps. .

Thanks,

Jignesh Mehta

[Former Member]

Hi Satish

I suggest you could consider Frieght Master record (TK11) for a lumpsum of amount. In the sense, instead of making it dependent on weight---make it independant whether he uses 1 ton or 30 in a container (Truck) the frieght will be the same.

This gets populated in the sales order>DO>Inovice.

Regards

[Former Member]

Hi there,

Try this:

Assuming that your have delivery based billing, in the copy controls from LF to F2 in VTFL, at the item level, in pricing type, choose the option H to redetermine freight conditions or G to copy pricing elements unchanged & redetermine others. So this will ensure that when pricing is done at invoice, freight will not be copied from sales order.

In the condition records, maintain the freight per truck capacity basis. For eg 0-30 tons $100, 30-60 tons $150 etc

In the pricing procedure, for freight condition type, in the alternative base value, put a customized code to pickup the total truck capacity maintained in delivery shipment header. So this means freight will be calculated on the basis of truck capacity rather than on actual weight

Regards,

Sivanand