Shipping Information Entered During Sales Order Maintenance

The shipping and billing process is initiated during Sales Order Maintenance with entry of information that determines how goods are shipped, who owns the goods during shipment, and how the shipment will be paid.  This shipping and billing-related information includes:

·     Ship via code

·     Route code

·     Carrier code

·     Shipment type

·     FOB code

·     Ship Reason Code

·     Shipping terms

·     Load number

Ship Via Code

The ship via code identifies the method to be used to ship goods to the customer.  Each ship via has volume and weight capacities that are used by the system to define order shipments and to evaluate load capacities.  The ship via code can be overridden at shipment time.

When a new sales order or quote order is created, the initial ship via code is established at the header level from the default for each ship-to customer.  You can manually override this value by entering an alternate code.  This code must be a valid value on Reference File category 319.  The default code is maintained on the customer name and address record as a single value for each ship-to customer.  It can be updated using the Customer Master File Maintenance conversation.

The ship via code and its description are displayed in all Order Processing conversations.  It can be modified in all conversations except Sales Order Inquiry and Quote Order Inquiry.  The ship via code is also maintained on each order line and defaults to the value entered on the Sales Order Header window.  It may be modified on a line-by-line basis by entering an alternate code on the Sales Order Line window.

Route Code

The route code identifies the route to be used by the carrier to ship the goods to the customer.  The route code is used by the system as one of the criteria that defines an order shipment.  The route code can be overridden at shipment time.

When a new sales order or quote order is created, the initial route code is established at the header level from the default for each ship-to customer.  You can manually override this value by entering an alternate code.  This code must be a valid value on Reference File category 320.  The default code is maintained on the customer name and address record as a single value for each ship-to customer.  It can be updated using the Customer Master File Maintenance conversation.

The route code is displayed in all Order Processing conversations.  It can be modified in all conversations except Sales Order Inquiry and Quote Order Inquiry.  The route code is also maintained on each order line and defaults to the value entered on the order header screen.  It may be modified on a line-by-line basis by entering an alternate code on the line detail screen.

Note:    In situations where multiple warehouses are used to source an order, each warehouse may use a different route.

Carrier Code

Carriers are the entities responsible for transporting shipments of goods.  The carrier code is used by the system as one of the criteria that defines an order shipment, but it can be overridden at shipment time.

When a new sales order or quote order is created, the initial carrier code is established at the header level from the default for each ship-to customer.  You can manually override this value by entering an alternate code.  This code must be a valid value on the Carrier Master File.

The default code is maintained on the customer name and address record as a single value for each ship-to customer.  It can be updated using the Customer Master File Maintenance conversation.  The carrier code is also maintained on each order line and defaults to the value entered on the order header screen.  It may be modified on a line-by-line basis by entering an alternate code on the line detail screen.

Carrier information may be set up in the Carrier Maintenance conversation.  General information about carriers, including address, phone/fax number, and taxpayer ID, network ID, BOL document format code, is stored on the Carrier Master File (CF160M).  Some of this information, such as the carrier's name and current address, is printed on the Bill of Lading copies.

Ship Reason Codes

Ship reason codes and  their corresponding descriptions specify the reasons why goods are being transported.  Examples of ship reason codes include:  Sales, Stock in Vision, Goods Transfer and Outside Processed Operation. 

When a new sales, quote, transfer, or blanket order is created, the ship reason code may be entered on the header screen.  This code will also be maintainable at shipment time and will also be displayed on the sales, quote, transfer, and blanket order inquiry screens.

When a Bill of Lading, Packing List, or Shipping Label is requested, the ship reason code will be retrieved from the order and the description associated with it will be printed on the requested document.

Throughout the Order Processing module, the ship reason code will default from Reference File category 413.  Throughout the Transfer Control module, the ship reason code will default from Reference File category D05.  The ship reason code defined on Reference File category G09 will be used as the default ship reason code throughout the Synchro module.  For all of these categories, the ship reason code must be valid on Reference File category M11.

Shipment Types

The shipment type code indicates whether an order is to be sourced from warehouse inventory or directly from a vendor.

Shipment type codes are defined on Reference File category 450.  There are two valid types:

·     A shipment type code of "W" (warehouse) indicates that warehouse inventory will be used to fill the order and that availability checking should be performed.

·     A shipment type code of "D" (direct) indicates that the order will be shipped directly from the vendor to the customer.  Availability checking is not performed if the shipment type is direct.

A shipment type code of warehouse or direct is valid for each sales order type or quote order type.  Shipment types are defined at the line level and cannot be changed at shipment time.

FOB Code

FOB (free on board) code designates the point at which the title passes for shipped merchandise.  Shipping terms are usually expressed as FOB Shipping Point (origin) or FOB Destination.  "FOB Shipping Point" means that the seller will load goods at the shipping point free of charge, but the buyer assumes title after loading.  "FOB Destination" means that the buyer assumes title after the goods are delivered to the shipping destination.

When a new sales order or quote order is created, the initial FOB code is established from the default for each company/warehouse.  This value can be manually overridden by the operator by entering an alternative code.  This code must be a valid value on Reference File category 419.  The default code is maintained on the Warehouse Description File as a single value for each company/warehouse.  It can be updated using the Warehouse Description File Maintenance conversation.

The FOB code is displayed in all Order Processing conversations.  It can be modified in all conversations except Sales Order Inquiry and Quote Order Inquiry.

Shipping Terms

The shipping terms code describes how freight charges are to be paid for merchandise shipped and whether or not the customer should be billed for freight.  Examples of valid codes are C.O.D. (collect freight on delivery), prepaid (freight charges have been prepaid by seller), and freight on invoice (freight charges have been added to the customer's invoice).

When a new sales order is created during Sales Order Maintenance, or a new quote order is created during Quote Order Maintenance, the initial shipping terms code is established as the default constant for each ship-to customer.  This value can be manually overridden by the operator with another valid value on Reference File category 321.  The default code is maintained on the customer name and address record as a single value for each ship-to customer.  It can be updated using the Customer Master File Maintenance conversation.  The shipping terms are also maintained on each order line and defaults to the value entered on the Sales Order Header window.  It may be modified on a line-by-line basis by entering an alternate code on the Sales Order Line window.

The shipping terms code and its description are displayed in all Order Processing conversations, and can be modified in all conversations except Sales Order Inquiry and Quote Order Inquiry.

Considerations

Sometimes the customer pays the freight charges to the common carrier because the carrier's regulations require prepayment on the particular class of merchandise shipped or the customer has requested it.  In this case, the shipping terms listed on the customer's invoice reads "prepaid" and the freight amount on the invoice should be set to zero.

When the merchandise is shipped using the seller's transportation and an additional freight charge is expected, the code "freight on invoice" can be used and the entered freight amount is added to the invoice total.

At the end of shipment processing, the system displays information relevant to computing the order freight charges, such as shipment weight and volume.  At this time, the operator can manually enter the freight charge.  It is the operator's responsibility to ensure that the freight charge is consistent with the shipping information on the order header.  This includes the shipment type, shipping terms, ship via, and route codes.  A warning message will be displayed indicating that the customer should be billed for freight if the shipping terms for the shipment is set up with a Customer Billed for Freight flag set to Y on Reference File category 321.

Load Number

A load is a group of order shipments that are delivered by one carrier on one route during the same time period.  Loads can be set up for use on a regularly scheduled basis or just for one delivery.  If used once, the load is considered a one-time load and must have a Promised Ship Date define for it before it can be used.

A load can be entered on the Sales Order Header window, but can be overridden on the Sales Order Line window or assigned during Load Consolidation.  Loads help determine order shipments because sales order lines with different load numbers cannot be assigned to the same shipment.