The charge calculation logic in an LSP scenario and in a shipper scenario is similar. Apart from the agreement, the same master data elements like calculation sheets, rate tables and scales are used. The main difference is, that the shipper is only concerned about the charges they will need to pay to their carriers, whereas LSPs are interested in both sides, the credit and the debit side. On the one hand, they need to be able to calculate how much to invoice to their customers, that is their revenue. On the other hand, they need to be able to calculate their cost, that is what they need to pay to third parties, for services that they themselves have subcontracted.
Thus, charge calculation typically happens twice in an LSP scenario. First, it must be triggered for forwarding orders based on forwarding agreements to calculate their revenues. Second, it must be triggered for freight order, freight bookings, consignment orders, or service orders to calculate the costs, that arise with subcontracting of (transportation) services to third parties.
The charge calculation is enabled in the forwarding order type. Additionally, you can configure the charge calculation so that it runs automatically when the user saves the forwarding order and makes changes to the document.
When charge calculation is initiated from a forwarding order or forwarding settlement document, the process of charge calculation is technically performed on a virtual object to keep the charge calculation logic consistent between forwarding and freight side. The virtual object will retrieve the relevant master data. It will first identify the relevant forwarding agreement and forwarding agreement item. It will then calculate the individual charge items using the calculation sheet, rate tables and scales. Charge calculation rules and conditions may influence the process of finding the right agreement, agreement item, rate table and others.
On the forwarding side, posting will transfer the forwarding settlement document to SD to create a billing document.
On the freight side, the calculation logic works in a similar way.
When charge calculation is initiated from a freight order, freight booking, consignment order, service order, or freight settlement document, the process of charge calculation is technically performed on a virtual object to keep the charge calculation logic consistent between forwarding and freight side. The virtual object will retrieve the relevant master data. It will first identify the relevant freight agreement and freight agreement item. It will then calculate the individual charge items using the calculation sheet, rate tables and scales. Charge calculation rules and conditions may influence the process of finding the right agreement, agreement item, rate table and others.
On the freight side, posting will transfer the freight settlement document to MM to create a service purchase order and service entry sheet.
A profitability analysis can be done in the forwarding order. The system takes into account all the costs and revenues associated with the execution of a forwarding order The system displays the revenues, costs, and profits for the planned profitability and estimated profitability. The sources of costs are freight orders, freight bookings, and freight settlement documents. The sources of revenue are forwarding orders and the corresponding forwarding settlement documents. Internal settlement documents are costs for the company receiving the settlement and revenue for the company sending the settlement.
The system performs the following analysis:
- Planned profitability
The system calculates the revenue and cost charges from forwarding orders. It takes the planned revenue from the charge calculation done in the forwarding order.
It takes the planned cost from the internal charge calculation done in the forwarding order. This is the planned internal cost for the forwarding order. Note the system does not include the internal charges in the freight order or freight booking when it calculates profitability.
If you enable intercompany settlement, the system uses the cost from the cost distribution in the freight order for an intracompany stage and the cost from the internal charges for an intercompany stage. If you enable intracompany settlement, the system uses the cost from the internal charges for both an intracompany and an intercompany stage.
- Expected profitability
The system calculates the revenue and cost charges from settlement documents. It takes the expected revenue calculations from the charge calculation done in the forwarding settlement documents that are associated with the relevant forwarding order.
The system takes the expected cost from the cost distribution done on the relevant freight settlement documents. It also takes the expected cost from the relevant internal settlement documents.
The video will show you a process, that includes charge calculation on forwarding and freight side as well as the profitability calculation.