Freight

Overview

In this process document we will discuss how to handle freight at the order and invoice level. We will also discuss the difference between “estimated freight” and “actual freight”.

Assumptions

This process document assumes that you have freight items set up in the item file. These items must be the item type “freight” and be a Savance Enterprise Non Inventory Item (SENI). Additionally, it is assumed that Savance Enterprise is not set to automatically generate invoices after shippers are posted to delivered. If this setting is set to true, estimated freight will be applied in full on the first invoice. Read more on why this is relevant in the estimated freight process below.

Estimated Freight vs Actual Freight

Throughout this process document, it will be critical to understand the difference between estimated and actual freight. Both forms of freight behave similarly but there is a key difference to consider when adding freight to orders.

Estimated Freight

Estimated freight can only be added at the order level. If you add a freight item at the order level the system will treat it as estimated freight until the user applies some, all or none of the estimated freight. Once one of these actions is taken, it is no longer estimated freight and is considered actual freight.

Estimated freight serves two functions. 1. To allow the user to send a quote or order confirmation to the customer including the expected freight charge in the total. 2. To remind and prompt the AR department to confirm and apply freight to the invoice.

Actual Freight

Actual Freight can only be applied at the invoice level. Once freight is added to the invoice, it directly impacts the invoice total and margin. Additionally, adding another freight line at the invoice level will add another freight line to the order and adjusting an existing freight line on the invoice will adjust its corresponding freight item on the order. As is mentioned in the estimated freight section above, as soon as estimated freight is applied to the invoice it becomes actual freight.

Estimated Freight Process

• Open a new quote. Add customer and inventory items you are selling.

• Add a SENI freight line item. Enter a net and cost as needed. Note that this isn’t required as you can adjust the net and cost at the invoice level.

• Convert the order

• You will notice that whatever you added for net on the freight line will be reflected in the freight row of the Totals section of the Summary tab and whatever you added for cost on the freight line will be added in the cost of the profit section of the same screen.

• Once the material has been shipped and is now in the AR invoicing queue, the person that invoices will notice that “Est. Freight On Order” is displayed at the top of the invoicing screen.

• Also notice that freight appears in the billing grid once the release is posted to loaded or beyond

• Before the release is invoiced, the user has the choice of whether or not to apply some, all or none of the estimated freight.

• To apply estimated freight, simply click the freight row in the billing grid one time. This will open a second row where you will be able to manipulate the net and cost as well as if the item is taxable (the default tax status will persist based on what is set at the item level).

• Enter the amount of estimated freight you’d like to apply. If none, don’t do anything and when you invoice, you will be prompted with this message.

• If freight is applied before the user clicks invoice, there will be no prompt with the above message and the freight line on the order will be updated to reflect what was applied.

See next page for examples of what it looks like when estimated freight is applied at the invoice level and order level.

INVOICE LEVEL AFTER APPLYING FREIGHT

ORDER LEVEL AFTER APPLYING FREIGHT

• The other scenario the user may encounter is when all releases are invoiced without applying any of the estimated freight. If this occurs, the user will have been prompted on every release with a reminder that there is estimated freight. The last release will give the user a different prompt warning that if none of the freight isn’t applied on the final invoice, the estimated freight line will be removed from the order.

• At this point, the user can select yes to apply the whole net/cost of estimated freight, or cancel and adjust the freight according to what was billed by the freight company.

• If the user selects no, the freight item on the order will be canceled and struck through.

• Once any modification or application of estimated freight has been completed, the freight is no longer estimated freight and instead becomes actual freight.

Actual Freight Process

• If the user that entered the order doesn’t include an estimated freight line, actual freight can be added at the invoice level.

• To add freight to the invoice, simply click the freight row in the billing grid once. This will expand the freight section by one row.

• You can then type a freight item in the second row or choose from all SENI freight items loaded in the item file by clicking the down arrow on the combobox.

• Please note that you can click the checkbox next to the part number in the screenshot above in order to select a default freight item to use for future freight lines.

• Once the freight item is selected, enter a net and a cost.

• Then save and close or invoice. The freight line will have been added to the order.

Deleting Freight

Estimated Freight

• The user can delete estimated freight at the order level and at the invoice level if the estimated freight has not yet been applied.

Order Level

• Unlock the order, right click the estimated freight line item and cancel the item. Then Save.

Invoice Level

• Expand the freight row of the billing grid and right click the freight item.

• Choose “Cancel Freight Estimated”.

Actual Freight

• The user can delete actual freight at the invoice level and the order level

Order Level

• To delete actual freight at the order level, the freight must not have been invoiced yet.

• Unlock the order, right click the freight line item and cancel the item. Then Save.

Invoice Level

• To delete actual freight at the invoice level, the freight can not have been invoiced yet.

• Expand the freight row in the billing grid and zero out the net and cost. Then Save and Close or Invoice. The order line item will be canceled and struck through.

Freight for Lot Project Orders

If your business utilizes Lot Projects, freight can be applied at the Enter Bills screen in AP. Please see the document called “Lot Projects - Process Doc” for more information on Lot Projects.

• For Orders using Lot Projects and Lot Project Items, freight and other charges can be added on the Enter Bills screen, or on the order itself.

  • If on the order, it is detached from the lot project parent relationship by default but you can attach it if desired.

• When entering the vendor’s bill, right click on the PO, and click Add Freight.

• Choose taxable or non taxable and the freight line will be added.

• Enter the cost of freight, and if you want to charge the customer for freight too, enter that in the Net Cust column next to the freight amount.

• Notice the amount is added to the total on the PO line.

• Click Create Bill and proceed.

• Back on the Order, notice the grand total refreshes.

• Since the PO you just created the bill for is hard linked to an order with at least Lot Project Item, the freight line is added but is not a child of the Lot Project nor the Lot Project Item.

• If you have already processed the shipper for those items (or for Stored shippers), this will also auto invoice the shippers.

  • Unless you have auto invoicing turned off

  • Unless it is on invoice hold

• If you have not processed the shippers, you will need to manually invoice them once they’re shipped.

Freight Indicators - Freight Allowed - for Lot Projects Only

For an indepth look at Freight Indicators, please refer to this document: Freight Indicators for Lot Projects - Process Doc

• Depending on the total cost of a lot project item, the “Freight Allowed” box will be checked for that line.

  • If the total cost of a lot project item meets or exceeds the “Free Shipping Order Amount” set for that vendor, the box will be enabled and checked, by default.

  • If the free shipping order amount is set to zero, the box will always be enabled and checked.

  • If the “No Free Shipping Order Amount” box is checked in the Manage Vendor screen (in the Account Info Tab), the free shipping order amount field will be disabled.

    • This setting is managed in the Manage Vendor screen in the Account Info tab.

• Once you convert the quote to an order, you can always unlock and change the freight allowed box if desired, at any time (given that the “No Free Shipping Order Amount” setting is OFF).

Freight Indicators - Customer Pays Freight - for Lot Projects Only

• Depending on the F.O.B. setting on the Ship To tab, the Customer Pays Freight box for lot project item lines will default to checked or unchecked.

  • Shipping Point = Checked

  • Destination = Unchecked

  • The Customer Pays Freight checkbox is always enabled (lot project items only), so it can be changed at any time before the creation of the PO’s bill/s.

  • To change, you will need to open the order and unlock it. The checkbox will be enabled and you either manually check/uncheck the box or change the F.O.B. for the entire order on the Ship To tab.

  • This column does not exist on POs.

• When ready, convert it to an Order.

• When ready to create POs for this project, open the Links tab and click Create RFQ/PO

• When Lot Project Items are present in an order, the only option is to create one PO per Lot Project Item, which is selected by default. Notice in this example, there will be 2 POs since we added 2 lot project items.

Freight Indicators on the Enter Bills Screen - For Lot Projects Only

• There are 2 new columns added to the Enter Bills screen for this feature.

  • The System Notes column, which indicates the status of the 2 checkboxes discussed.

    • There is potential for other types of messages in this space in the future.

  • And the blue “i” icon column. When hovered over with the mouse, the same information in the Vendor Info tab in the basket menu is displayed. This is mainly to show the Free Shipping Order Amount and coincides with the message left by the Freight Allowed indicator.

• Also, when you hover over the System Notes column for a specific PO, the messages appear in a popup as a list.

• Because these are just display messages, they do not affect the ability to add freight or other charges to the Enter Bills screen.

General

• The user can always add additional freight to the same freight line that was added on prior releases. In other words, if the user added actual freight to the first release then invoiced that release and then wanted to add more freight charges to the second release but not add a second freight line item to the order, the user can simply add the quantity to the net and cost in the same freight line in the billing grid and the freight line item on the order will just add the net and costs from both releases for a sum total of the net and cost of the freight item for the whole order.

• Keep in mind that having multiple freight lines on the order doesn’t hurt anything. The order is just a global summary of all the invoices.

• The user can adjust net and cost of freight at the invoice level independently.