freight code and class tied to material freight group

[Former Member]

Hi Gurus,

Can anybody please helpe me move forward on this scneario. We have a requirement to print the freight code and freight class on the BOL goin to the customer. Now in the configuration there is a place to put the combinations of freight code and class tied to material freight groups and forwarding agents. It is in LE>transportation>Basic transporttation functions>maintain freight code sets and freight codes. Now in this node, we havedefined the freight codes and classes which in turn get tied to material freight group which is on the sales general/plant view of the material master. So whenever sales order is created it should go grab the freight code and class which are tied to a given material frewight hgroup. Can anybody please throw me some light on what is the purpose of material freight group. please give some real time examples. Also if there are twenty combos of freight codes and classes in the config, should we also need to have twenty different material freight groups as we can have only one materialfreight group tied to one unique code and class. please help

Thanks

Anusha

Edited by: anusha vemulapati on Nov 10, 2010 7:15 PM

[Former Member · Accepted solution]

Anusha

Material freight group (MFG): is used to group materials to determine its freight classification and ultimately its freight code. For example, suppose yours is a chemical company and you make solid products in bulk ( example Sulphur), in bags ( Ammonium Sulphate), Liquids ( Sulphuric Acid), Gases ( Hydrogen Sulphide, Yeikes!). Now the transportation requirements of these products and the freight charged to transport vary according to their physical ( Bulk/Bagged/Liquid/Gas in cylinders) characteristics, chemical properties ( Reaction with other products being transported, Volatility, flammability etc) and Goverment Regulations. So you group them and the field that is used it for it is material freight group. Simply understand it as the field that is material based and used to calculate the freight (code) which also depends on the vendor (Freight carrier- as each one of them may have their own classification and rates)- Shipping type ( Truck, Rail or ship for example) and country. From the above example, if your company manufactures Oxygen and Nitrogen, both of which are delivered in Cylinders, you may group them under the same group in the material master.

Freight code sets, Freight codes (FC) and classifications are usually vendor specific and provided by them. For example, Jaipur Golden may charge one rate (read as Freight code) for bulk material (Sulphur) taken in a truck and a different rate for Oxygen Cylinders.

As you would have seen firstly Freight code set is determined from the combination of Forwarder, shipping type and country. Then the fright code which is a part of the Freight Code Set (FCS) and comes from FCS and MFG combination.

Your specific question: No, you need not have 20 different MFGs. Remember, it is just one factor used to find out the FC and the design is in your hands. You may have just one NFG ( I am not recommending it) and use it in combination of other factors to lead it to different FCs.

Hope this helps.

[amit_kumar16 · Accepted solution]

This is an Awesome explanation, Kudos.