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Managing Freight Costs on PO's

szmyd

Well Known Member
Hi!

I'm looking to see if anyone would mind discussing how they manage inbound freight costs on purchase orders.

We currently use landed costs for this. This is nice since the system will create a payable and include the freight costs in the weighted average cost of the item. However, it is becoming difficult to manage for a variety of reasons...

1 - Flat rate freights costs are challenging to manage using landed costs since these need to be setup on a per unit of measure basis. We've been working with Oracle support on finding ways around this, but have not come up with anything. To get the flat rate freight to work, we need to manually recalculate the per pound cost after we know how much was received.

2 - We work with haulers that have different delivery rates based on days of the week, distance hauled, etc, making knowing which landed cost to use a challenge when the PO is entered.

If anyone is managing freight costs in a better manner and would like to share their best practices, I would appreciate it.

Thanks
Nick
 

rsvconsulting

VIP Member
I suspect you have not implemented Transportation, but have you evaluated the freight functionality as a potential solution?
 
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