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 Overview

Each customer can be assigned a standard shipping method in the Ship field in the Accounts Receivable customer file. If you use common shipping methods such as UPS or Air Freight, you can designate shipping codes that correspond to these methods. Individual rates can be established by weight and category for each geographical zone to which you ship products.

You can enter the shipping code, ship zone, and/or weight when entering sales orders and invoices. Freight charges are automatically retrieved and added to order totals. The shipping code method used should be based on the number of individual shipment locations, the number of individual freight carriers, and the degree of simplicity you want in shipping rate calculation.

 Before You Begin

Shipping Rate Maintenance is available only if Yes or Actual is selected in the Use Shipping Code to Calculate Freight field in the Sales Order Options window.

 

To set up shipping rates

1. Select Sales Order Setup menu > Shipping Rate Maintenance.

2. Enter a shipping code and description. For more information, see Shipping Rate Maintenance – Fields.

3. On the Main tab, set up shipping rate calculations using one of the following methods in the Calculation Type field.

 To charge by weight:

1. Select Weight in the Calculation Type field.

2. Select the weight calculation method to use.

3. Select the Use Ship Zone check box to calculate freight by ship zone. Select additional ship zone check boxes as necessary to use customer ZIP Codes as ship zones.

 To charge by invoice amount:

1. Select Amount in the Calculation Type field.

2. Enter the base amount to charge.

 To charge by price per quantity or price per weight by product line:

1. Select Product Line in the Calculation Type field.

2. Enter the base amount to charge.

3. At the Line Type field, select to charge by price per quantity or price per weight.

Note  After you have completed the Main tab fields and clicked the Charge tab, you cannot change any Main tab fields for the selected shipping code.

4. Click the Charges tab. Enter the shipping charges according to the calculation method selected on the Main tab.

The shipping code is created. After the code is accepted, you cannot change the calculation fields on the Main tab. Only the fields on the Charges tab can be modified. To modify the Main tab fields, you must delete the code and reenter the information.

 

 Entering Shipping Rates - Example

A shipping code is created for company ABC that calculates shipping charges based on the quantity of items ordered from product lines A, B, and C, with a base amount of $5.00. The following information is entered for the shipping code:

Calculation Type: Product Line

Base Amount: 5.00

Line Type: Quantity

Charges:

Product Line	Flat Rate	Amount Per Qty
A	1.00	.10
B	5.00	.20
C	25.00	10.00