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To
And The Transactions Workbench (Doc ID Bottom
1096942.1)
In this Document
Goa
l
Solutio
n
1. Check Freight
Setup
a. Transaction Type
Setup
b. Freight As An Inventory
Item
c. System Profile
Options
d. Settings In Order
Management
e.
Summary
2. Troubleshooting
Freight
3. Still Have
Questions?
Reference
s
APPLIES TO:
SOLUTION
If you want to recognize revenue on freight and calculate taxes against it,
then you need to set up freight as an inventory item. Additionally, there are
profile options and system parameters you need to set up, please check
Section 1 below. If you set up Freight as an Inventory item, then multiple
freight lines will be at the invoice line level rather than a single freight at the
header level.
If you just want a simple freight charge for additional services such as
shipping and handling or courier fees, without recognizing any revenue
against the freight amount or calculating taxes against it, then you do not
need to setup freight as an inventory item.
User Item Type = Freight (Only Items with User Item Type =
Freight, will appear in the List of Values when you define the
Profile Option: Tax: Inventory Item for Freight and the OM
Parameter: Inventory Item for Freight )
In the Invoicing tab:
Invoiceable Item = checked
Invoice Enabled = checked
If you process freight as revenue and you want tax to be calculated against
the freight, then you must setup the following system profile options for
your Order Management (if you interface transaction from Order
Management) and Receivables Manager responsibilities:
NOTE: The values set for the Order Management system parameters above
are used in conjunction with the Profile Option: Invoice Freight as Revenue.
If the profile option is Yes, and if a freight line is interfaced with a LINE_TYPE
of
LINE, taxes will be calculated against the freight amount.
FREIGHT, taxes won't be calculated against the freight amount.
e. Summary