Pass Freight earned to Freight Carriers
Hi,
We apply freight costs during ship confirmation of deliveries that get converted into freight charges and eventually invoiced as revenue. We need to pay this earned freight revenue back to the freight carrier. How do we treat this freight as cost to the company? Is there an automated process to pay the freight costs to the freight carrier? Does OM or AR automatically create a payables invoice to pay the freight carrier based on the freight earned as revenue?
This is for an R12 Mfg implementation. We don't use OTM. We feel this must be a common requirement across mfg industries that avail 3PL services to ship goods to end customers. Please provide your inputs.
We apply freight costs during ship confirmation of deliveries that get converted into freight charges and eventually invoiced as revenue. We need to pay this earned freight revenue back to the freight carrier. How do we treat this freight as cost to the company? Is there an automated process to pay the freight costs to the freight carrier? Does OM or AR automatically create a payables invoice to pay the freight carrier based on the freight earned as revenue?
This is for an R12 Mfg implementation. We don't use OTM. We feel this must be a common requirement across mfg industries that avail 3PL services to ship goods to end customers. Please provide your inputs.
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