Automated Sales Delivery Charges

Calculate and apply delivery charges on sales documents automatically.

Part of Distribution Costs Management, this functionality will calculate an estimated delivery charge and apply it to your sales orders as an Additional Charge. On shipping the order, these values are posted to inventory as value entry costs, and to the chart of accounts.

Prerequisites

Ability to create and manage Sale Orders.

Working knowledge of Item Charges.

Initial Setup

1. Choose the icon, enter Distribution Costs Setup, and then choose the related link.
2. In the Sales Delivery Charge Unit of Measure field select '9L Eq. Unit'.

This defines the unit when populating the Shipping Agent Delivery Charges page, Quantity Break and Unit Charge (LCY) fields.

Shipping Agents

For each transport company you use, you should create a Shipping Agent. Shipping Agents can be set against Customers and Ship-tos which default to any sales order created for them to reflect who is transporting your goods to its destination.

1. Choose the icon, enter Shipping Agents, and then choose the related link.
2. Create a record here for each company that transports goods for you.

Field	Note
Code	Specifies a short code to identify the Shipping Agent
Name	Specifies the Shipping Agent's name.
Internet Address	Specifies an internet address for the Agent. This field can be used in conjunction with the Package Tracking No. on Posted Sales Shipments. See also How to track packages.
Sales Delivery Item Charge No.	Denotes the default Item Charge No. used when posting Sales Delivery Charges against this Shipping Agent.
Vendor No.	Denotes, if applicable, the vendor providing this service. This is for information only, no specific vendor postings occur because of this field.

Shipping Agent Services

Each Shipping Agent can have multiple Shipping Agent Services that correspond to their different services, i.e., DHL Overnight, DHL Next day.

1. Highlight the appropriate Shipping Agent, then select the ribbon option: Related, Line, Shipping Agent Services.
2. View or create records in the Shipping Agent Services page.

Field	Note
Code	Specifies a short code to identify the Shipping Agent Service
Description	Specifies a description for the service.
Sales Delivery Charge Flat Rate (LCY)	Specifies a flat rate, in local currency, for any delivery using this service.
Shipping Time	Denotes a default shipping time used by this service. This field is not used in delivery charge calculations.
Base Calendar Code	Specifies a customizable base calendar for shipment planning. This field is not used in delivery charge calculations.
Customized Calendar	Specifies if you have set up a customized calendar for this service. This field is not used in delivery charge calculations.

For each Shipping Agent Service you can set up:

• Sales Delivery Zones. This groups post codes into geographical or charging Zones as defined by your Shipping Agent.
• Sales Delivery Charges. Here you set up the charges that apply to each Shipping Agent Service and Zone.

Delivery Zones

1. Highlight the appropriate Shipping Agent Service, then select the ribbon option: Related, Sales Delivery Zones.
2. View or create records in the Shipping Agent Delivery Zone page.

Field	Note
Delivery Zone	Denotes the Zone code or name.
Post Code	Enter here the post code or part post code relating to the Zone above.
Description	Optionally you can enter a description to help identify the line details.

Delivery Charges

1. Highlight the appropriate Shipping Agent Service, then select the ribbon option: Related, Sales Delivery Charges.
2. View or create records in the Shipping Agent Delivery Charges page.

Field	Note
Zone	Denotes the Shipping Agent Service Zone the charge applies to.
Quantity Break	Signifies if there is a quantity break required to apply to this line (up to and including this quantity). Note that the Quantity Break is per 9L equiv. case, as per the Distribution Cost Setup record at the beginning of this article.
Unit Charge (LCY)	The charge per unit to apply when this line is selected.
Flat Rate	If checked, the Unit Charge (LCY) field becomes a total value; otherwise, it's a value per eq. case.

Charge Logic

On Release of the Sales Order a number of steps are taken:

1. The order's Ship-to Post Code is converted to a Zone Code using the details in the Shipping Agent Delivery Zone page. To do this, Bevica matches the Ship-to Post Code against the most specific Shipping Agent Delivery Zone Post Code.
2. The Shipping Agent Delivery Charges page is filtered using the order's Shipping Agent Code, Shipping Agent Service and Delivery Zone to list the possible charges.
3. The Shipping Agent Delivery Charges page is further filtered comparing the Quantity Break field against the total number of 9 Litre equivalent cases on the order.
4. We now have one Shipping Agent Delivery Charge line. If Flat Rate is set, the Unit Charge (LCY) is the value applied to the order. If Flat Rate is not set, the value applied to the order is (Unit Charge (LCY) x 9 Litre equivalent cases).

The calculated delivery charge is inserted into the Additional Charge page on the sales order. From here it is posted on Shipment, see Document Additional Charges.

Note

The 9 Litre equivalent case value on the sales order is calculated using the Unit Volume and Quantity on each sales line. If an item line does not have a unit volume, it is excluded from any calculation.

Note

If an order is reopened, the Additional Charge line is deleted and recalculated on release again. The charge amount can be amended manually after being released and before being shipped.

Scenario 1

For Zone 'Inside M25' the transport company's service has a flat charge of £50.00 for delivering up to 9 '9 litre equivalent cases' (Eq. Case), then they charge per Eq. Case in quantity break bands.

Zone	Quantity Break	Unit Charge (LCY)	Flat Rate
Inside M25	0	50.00	Yes
Inside M25	10	5.05	No
Inside M25	20	4.95	No
Inside M25	30	4.85	No

If the total Eq. Case value on the order is...

• 8, the calculated delivery charge is £50.00 (flat rate for under 10)
• 20, the calculated delivery charge is £99.00 (20 x £4.95)
• 28, the calculated delivery charge is £138.60 (28 x £4.95)
• 55, the calculated delivery charge is £266.75 (55 x £4.85)

Scenario 2

For Zone 'Outside M25' the transport company's service has flat rate charges in quantity break bands.

Zone	Quantity Break	Unit Charge (LCY)	Flat Rate
Outside M25	0	50.00	Yes
Outside M25	10	75.00	Yes
Outside M25	20	125.00	Yes
Outside M25	30	150.00	Yes
Outside M25	40	175.00	Yes

If the total Eq. Case value on the order is...

• 1, the calculated delivery charge is £50.00
• 10, the calculated delivery charge is £75.00
• 28, the calculated delivery charge is £125.00
• 55, the calculated delivery charge is £175.00

Scenario 3

For Zone 'South West' the transport company's service has a flat charge of £50.00 for delivering up to 9 '9 litre equivalent cases' (Eq. Case), then they charge per Eq. Case in quantity break bands and have a maximum charge of £150.

Zone	Quantity Break	Unit Charge (LCY)	Flat Rate
Inside M25	0	45.00	Yes
Inside M25	10	5.00	No
Inside M25	20	150.00	Yes

If the total Eq. Case value on the order is...

• 8, the calculated delivery charge is £45.00 (flat rate for under 10)
• 20, the calculated delivery charge is £100.00 (20 x £5.00)
• 28, the calculated delivery charge is £140.00 (28 x £5.00)
• 55, the calculated delivery charge is £150.00 (flat rate for 20 or over)

Troubleshooting

Issue	Take a look at...
No Sales order additional charges are being calculated	• Is the order Released? • Does the Sales Order have a Shipping Agent & Service? • Is the Ship-to Post Code linked to a Shipping Agent Service Zone? • Do the item lines have Unit Volume values?
Calculation looks wrong	• Do all items have the calculation unit populated (i.e., Volume)? • Does the Shipping Agent Service have a Sales Delivery Charge Flat Rate (LCY) set?