Often logistics service providers (LSPs) have multiple freight agreements (FAs) with the same carriers and purchasing organizations. This is because a LSP can strike deals with carriers at various levels, for example, on a country, regional, and global basis.
Normally, the larger the contract, the better the rates. However, if a country Business Partner (BP) is pushing a lane to increase market share, then the LSP could potentially get better rates. Therefore, it makes sense to have a different contract with the country BP, or even multiple contracts.
Similar scenarios can exist on the customer side. Therefore, the ability to choose a particular context in a given scenario is a critical business requirement on both the buying and selling side.
Manual Agreement Selection: Functions
- An enhancement to the standard agreement selection, which is an automated process.
- Provides the capability to select an agreement or agreement item for charge calculation.
- Offers extra capability for automatic selection of minimum or maximum agreement items through calculation profile control setting.
Multiple Agreements Pop-up
The figure shows the Multiple Agreements dialog box, which can be used to select an agreement manually.
Note
The Multiple Agreement pop-up is not supported for through rates.
Agreement Determination Type
Manual Agreement Selection: Example Scenarios
Customizing activity for Transportation Management occurs in Transportation Management→Basic Functions→Charge Calculation→Basic Settings→Define Calculation Profiles.
If you enter Minimum Charges, the system finds the final amounts for all the agreement items and chooses the agreement item with the minimum final amount for charge calculation.
If you enter Maximum Charges, the system finds the final amounts for all the agreement items and chooses the agreement item with the maximum final amount for charge calculation.
If you enter Determine All Agreements, the system displays all the relevant agreements and agreement items for each charge item. You can then select an agreement or agreement item for each charge item, for charge calculation.
If you do not enter any value, the system does not consider the agreement determination type for charge calculation and follows the standard agreement determination process.