How To Guide

Setup of Freight Revenue

Table of Contents

OVERVIEW ..................................................................................................................... 2
SETUP ............................................................................................................................ 2
FREIGHT TERMS GESADI (MISCELLANEOUS TABLE 5) ............................................................................ 2
ADDON PARAMETERS - GESXAO (XFRTZONTYP, XFRTALLELE, XFRTBASIS) .................................... 3
FREIGHT ZONE DEFINITION - GESADI (MISCELLANEOUS TABLE 4109) ....................................................... 4
FREIGHT ZONE MAP - GESXCK ................................................................................................................ 4
FREIGHT SPECIALS (OPTIONAL) GESSPC & GESSPL............................................................................ 5
FREIGHT REVENUE - GESXCX ................................................................................................................. 6
FUNCTIONAL ................................................................................................................. 7
SALES ORDER PROCESSING GESSOH................................................................................................... 7

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 Setup of Freight Revenue

Overview
The Freight Addon (XA39) of Sage ERP provides functionality for defining standard shipping and handling
charges and applying them to a sales order. These charges are what is billed to the customer and are
not tied to the actual shipping charges. The only connection is that you typically use the actual charge
to help determine the standard charges so that you are not undercharging your customer and losing
money on shipping.
The tables provide flexibility in that you can define them by either state or zip range. This document
shows state, as it is takes less data and is easier to visualize.

Setup
The setup of freight revenue is comprised of five basic steps. The steps are as follows:
Freight Term Definition
Add-on parameter (Zone Type, Revenue Basis)
Freight Zones (Misc. table 4109)
Freight Zone Map
Freight Charges
Flexibility has been provided to allow for the definition of freight revenue tables that are global (not service
specific), based on a generic service (ex: ground delivery) or specific services (2nd Day Air). Your
business practices dictate which solution is required.

Freight Terms GESADI (Miscellaneous Table 5)

The freight term associated with a sales order dictates (if/how) the freight revenue (customer freight
charges) will be applied to the order. When the freight add-on is active, the freight term field is available
for entry/edit on the sales order. Details on the sales order processing can be found later in this
document.
The setup associated with the freight term is very simple. It consists of the term code and description.
These terms are those commonly defined in the logistics world such as Prepaid, Collect, Prepaid and
Add, etc. Additionally, the terms for sales/purchase are often expressed as FOB Origin and FOB
Destination. These terms indicate how the freight is being managed and when the title to the goods
passes. The freight revenue functionality uses a derivation of the terms to control the management of
freight charges. This is accomplished with the addition of a behavior flag on the terms code. The options
are PPA and FOB Dest.
The PPA code linked to a Freight Term indicates that the freight charges on the order are being passed to
the customer. This setting results in freight revenue charges being added to the order. The second code
FOB Dest linked to a Freight Term indicates that the freight is not being directly charged to the
customer. In many cases, the product price is adjusted so that the freight is included in an order lines net
price.
Simply stated, using a freight term with the behavior flag = PPA will result in the freight revenue charges
being added to the footer of the order. A term with a behavior of FOB will either incorporate the charge
into the line (depending on the price structure and add-on parameter setup) or result in a zero freight
charge to the customer.

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 Setup of Freight Revenue

Addon Parameters - GESXAO (XFRTZONTYP, XFRTALLELE, XFRTBASIS)

Prior to creating the Freight Zones portion of Freight Revenue setup, add-on parameters need set for
each warehouse site.
Zone Type: Freight zones may be established by range of Postal Code or by individual State. Parcel
carriers typically use postal code based zones. This document will use the State option in all examples.
Freight Inv Elem: Invoicing element used during order invoicing function.
Freight Basis: Freight charges are set by shipping mode & zone and a range of values. The values
entered may be in either weight or order value. Set the Freight Basis to one of the two.

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 Setup of Freight Revenue

Freight Zone Definition - GESADI (Miscellaneous Table 4109)

The zones used within the freight revenue table must first be defined in Miscellaneous Table 4109.
If you are planning to use the rate shopping capability of the Freight add-on, you should make your zones
distinctive and different from the zones provides by the parcel carriers. For example, do not define a
zone 2 as it will be one already defined by the carriers. Using the same scheme for freight revenue can
potentially result in a conflict with the carrier mapping. To keep it simple, we suggest a prefix like Z for
your internal zone definitions. The screen below illustrates the setup of zones 1-5 using a Z prefix.

Freight Zone Map - GESXCK

The freight zone map is where you define the contents of a zone. We support two of the more common
methods, which are state and postal code range. The example below illustrates a geographical mapping.

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 Setup of Freight Revenue

Note: Since most zones are state based, enter the state code as the starting and ending range. If
postal codes are used in place of states, enter a range to define a zone. (ex: 153 to 16000)

Freight Specials (Optional) GESSPC & GESSPL

Freight specials can be defined by using the Price Entry function for selected Price Codes. If the price
code is referenced on a sales order, the freight amount is pulled from the pricing table. For more
information on Price Codes, see the How-To guide on Setting up Sales Pricing.

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 Setup of Freight Revenue

Freight Revenue - GESXCX

This function is used to define the shipping and handling charges that are associated with an order/zone.
It is defined for a service (ground, air, etc.). The diagram below shows published shipping charges by
zone.

Zone Shipping Rates

Order Amount Zone 1 Zone 2 Zone 3 Zone 4

$0 $24.99 $8.35 $8.65 $8.90 $9.15

$25 - $49.99 $9.40 $10.25 $11.00 $11.75

$50 - $74.99 $13.60 $14.20 $14.65 $15.00

$75 - $99.99 $13.95 $15.25 $17.25 $18.00

$100 - $149.99 $18.65 $19.50 $21.25 $22.25

The example below shows the Sage X3 setup to support this type of pricing. In the example, Z4
corresponds to Zone 4 in the diagram.

The definition also requires that you define the source type (professional or residential). This option
provides additional flexibility. If you charge different rates depending on the source or catalog, you can
use this to denote the charges. For example, you can have a residential charge of $8.35 in zone 1 and a
commercial charge of $8.10.

The freight revenue examples shown in this guide are based on order value, though they may be set
based on order weight. If the Add-on parameter is set to weight, the minimum and maximum value
columns in the charge table should be entered in weight. It is suggested that your product be checked to
ensure they have valid and accurate weights if that method of calculation is used.

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Functional
Sales Order Processing GESSOH
Freight revenue is evaluated when an order is created or saved. Freight charges on an order can
originate from several sources. Since there are multiple sources for freight charges, the following rules
are used to determine how they are determined.
Manual Freight Manual freight overrides any other type of freight charges. Manual freight is
entered on the Misc. tab of the sales order.
Freight Specials Freight specials can be defined by using the group pricing feature in Sage
ERP X3. When the group pricing logic finds matches, the returned value overrides the standard
freight revenue tables.
Freight Revenue Used when there is no manual freight or special on the order.

Freight revenue is dictated by the freight terms associated with the order. The logic surrounding the
freight terms has been extended, and follows the sequence below when determining the default freight
terms.
Level 1 Customer ship-to (GESBPC)
Level 2 Addon parameter (GESXAO)
As soon as a default is identified, it stops searching. Under the Add-on, freight terms is a mandatory field
since they control the behavior that directs the freight charges to the footer or the line.
Freight Charges can appear on the order in a few places. If manual freight is entered on the Misc. tab, it
is moved to an invoicing element. Freight revenue, when located, is also moved to an invoicing element.
Freight Specials are moved to the Freight field on individual sales order lines.
You should NEVER enter freight values directly into the invoicing element.
The freight, regardless of source, appears in the invoicing element. If you are using the line structure and
freight percentages, the invoicing element displays the percent.

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