Freight Factors

Inventory>File>Receiving/Costing>Costing or Receive from Invoice

The Freight Factor information is located on the bottom of this screen.

When receiving or costing inventory, a freight factor may be applied to the cost of the material.

Roll Freight Factor

For rolls, choose to either calculate the factor based on per unit cost or on a percentage of the gross cost.

Per Unit Cost: 

Enter an amount (in dollars & cents.)  This amount will be multiplied by the number of units on the customer order line that is sold to compute the freight cost.

Use Percentage of Gross Cost: 

Enter a percentage.  The percentage will be multiplied by the gross cost to calculate the freight factor.

Apply Roll Freight Factor

After you select the type of roll freight factor calculation, you must click the Apply Roll Freight Factor button to apply it to all of the rolls displayed for this supplier invoice.

Item Freight Factor

For items, you may select from three areas to calculate a freight factor:

Use Products File

This selection will use the amount entered on the Products record for this item as the freight factor.  If the products record freight field is blank, a zero freight factor will be used.

Use Per Unit Cost

Enter an amount (in dollars & cents).  This amount will be multiplied by the number of units on the customer order line that is sold to compute the freight cost.

Use Percentage of Gross Cost

Enter a percentage.  The percentage will be multiplied by the gross cost to calculate the freight factor.

Actual Freight

The actual freight shown on the supplier's invoice may be distributed or amortized among all inventory being received on this invoice.  Mixed invoices (invoices that contain rolls and items) may be received and distribute the freight according to a specific mathematical procedure.

• Freight is distributed according to percentages of the total invoice.
• Mixed invoices are divided first and the percentages for each type of inventory (roll or item) are calculated.
• If more than one item is being received with rolls; the items are divided again to calculate a weighted percentage among just the items.
• Rolls are combined (total square yards or square feet) for the invoice. Then the percentage of freight (in dollars) is divided by the total number of square yards on the invoice.

To illustrate the algorithm more clearly, an example is shown here:

Total Product Amount on Invoice:	$2,000.00
1 Roll Line (80 sq. yds.) for $1,500.00 1 Item Line (20 pieces)  for $   500.00
Total Freight Amount on Invoice:	$100.00
Roll Percentage is calculated: Total Invoice divided by   the Roll Total        $2,000 - 1,500	75%
Item Percentage is calculated: Total Invoice divided by the Item Total    $2,000 - 500	25%
Now, to calculate the actual freight:
Roll:  Total Freight Amount multiplied by 75% $100.00 x 75%	$75.00
Item:  Total Freight Amount multiplied by 25% $100.00 x 25%	$25.00
Last, the per unit freight is calculated:
Roll:  Total Freight for Rolls is divided by Total Roll Units on the Line $75.00 - 80 sq. yds.	$ .94 per yard
Item:  Total Freight for Items is divided by Total Item Units on the Line $25.00 - 20 pieces	$1.25 per piece