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Diffence between Freight & Shipping charges

Dear sd experts

i know we when ever we want to Add some Transporting charges to customer we can use Freight Condition types KF00

And another process is shipment process FB00-Tk11

in both scenarios we add Transporting charges like 300 tons 50 rs --350 tons 80 rs like this

May i know exact what is difference i mean when we use only Freight and when we use only Shipment process

Thnaks

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  • Best Answer
    author's profile photo Former Member
    Former Member
    Posted on May 07, 2014 at 02:57 AM

    Hi Amith

    We use shipment process to have clear distinction of cost and freight occurrence at each leg...For example if your shipment includes involvement of rail, road , air and sea.For each mode you have different vendor and you want to capture cost for each mode as well as you want to charge based on this cost to customer then shipment process will be the best bet but if you want to charge fixed freight charges to a customer then directly determine freight condition KF00 in a sales order.

    Usually companies adopt shipment process to analyze and reduce cost involved in shipment by optimizing routes and deliveries of multiple customer.They plan to deliver different orders in one shipment and load orders in a truck based On LIFO..I.e. last in first out principle.

    Let us know your thoughts or if you have any doubts.

    Thanks

    Amit Gupta

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  • author's profile photo Former Member
    Former Member
    Posted on May 12, 2014 at 06:44 AM

    Hi Amith,

    Freight charge maintain in pricing condition VK11 when customer pay to company for material dispatch from factory to customer location and shipment cost define charge of shipment(ex truck/rail/) form factory to customer location company pay to vendor/transporter(TK11).

    thanks

    Ashish

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