How the ‘Use Shipping Code to Calculate Freight’ option in Sales Order Options works.

The option to ‘Use Shipping Code to Calculate Freight’ has three settings: ‘Yes’, ‘No’ and ‘Actual’.

Select ‘Yes’ to use preset the Shipping Codes set up in Shipping Rate Maintenance to calculate freight charges. A Freight Charge Table is created for each shipping code, with shipping rates determined by ship weight and, optionally, by ship zone.

Select ‘No’ to manually enter all freight charges, or if freight charges are not required.

Select ‘Actual’ to calculate freight charges using the total weight of all items ordered; this option allows you to use Ship Codes and the actual weights from the Inventory Master File (IM1). Individual shipping codes are defined in Shipping Rate Maintenance.

Note: When using Actual, and the freight amount is manually overridden in Sales Order Entry, the system will recalculate the freight amount based on the rates setup in Shipping Rate Maintenance. In other words, changes made to the freight in Sales Order Entry will be changed back when the sales order is invoiced. Additionally, any typed-in freight amount will not carry over from the order into Shipping Data Entry. When setting the option to use ‘Actual’ as the Shipping Rate, the system assumes the freight will be either entering during Shipping Data Entry, or the freight amount from StarShip will be used.

There are three ways to calculate the freight amount:

Weight – By weight using shipping codes
Product Line – On a price per quantity or weight by product line
Amount – On the invoice amount