Business Value

Order costs are costs added to a sales quotation or sales order for commercial reasons, e.g. to charge the customer for freight or transport costs. Order costs are added based on packaging dimensions of the items on the sales quotation or order. Order costs can be added as a service item or as an additional charge.    

Assumptions

• Order costs are only applicable for sales quotations and sales orders, and not for example for purchase orders or advanced sales quotations..
• Order costs are not recalculated during the logistical processing of the sales order. So, in the case order costs were calculated for a pallet during order entry, but during packaging a package was sufficient, the order costs are not recalculated.
• Order costs are calculated based on header information (totals of sales lines) and not for individual sales lines.
• Order costs are calculated for single orders and not for a group of orders.
• Time slots is linked to Order cost is only possible if Order costs are setup as additional charges.
• Order costs based on Service item is not supported in combination with Unified pricing. See parameter “Order costs as service item or additional charges”.
  

Calculation order costs on sales quotation/order

Order costs calculation is triggered when:

1. The button Order costs is pushed on the sales quotation or sales order
2. When the order complete form is opened on the sales order (depending on parameter)
3. When creating/saving an order line (only in case of Sales origin with checked parameter “Calculate order costs”)

The following steps are done to perform the order costs calculation:

1. Select (based on carrier, country and region from the header), the corresponding records from the Package type details, including the values for the different dimensions. The selection is done based on the following hierarchy:

a. Carrier/Country/Region
b. Carrier/Country
c. Carrier
d. Country/Region
e. Country
f. [Empty]

2. Determine/calculate the following dimensions for the sales quotation/order:

a. Total weight
b. Total amount
c. Total volume
d. Size
e. Length

3. Compare the values found in step 2 with the values of the dimensions from step 1.
   If multiple package types are found, the search priority is taken from the table ‘Package types’.
   The lowest number has the highest priority.
   In the case all the values of step 2 are smaller than the values of step 1 the package type is determined. Otherwise, continue with the package type with the next highest search priority and do the same comparison.
   
   Continue this process, till a package type is found. In the case no next record is found, the default package type from the parameters is taken. If the parameter is empty, no record is found and the calculation stops.

4. Based on the found Package type, the Customer relation(*), Currency, Country/region, State, Requested ship date and Drop shipment a search is done in Order costs. The selection is done with the following priorities:

   a. Start date & End date / Package type / Currency / Drop Shipment / Customer relation(*) / Country / State
   b. Start date & End date / Package type / Currency / Drop Shipment / Customer relation(*) / Country
   c. Start date & End date / Package type / Currency / Drop Shipment / Customer relation(*)
   d. Start date & End date / Package type / Currency / Drop Shipment /Country / State
   e. Start date & End date / Package type / Currency / Drop Shipment / Country
   f. Start date & End date / Package type / Currency / Drop Shipment

   (*)Within the Customer relation validation, all available options are take into account and applied in the following sequence:

1. Customer object
2. Account (table)
3. Group
4. All

So if the order meets the same number of criteria’s, the Customer object will be considered before Account. But if more criteria’s are met for the setup line for the Account it will be considered before the Customer object, even if the Customer object is specified on the concerning order. That is why it is important to specify as many fields as possible on the Order cost setup line. For the same reason we inherit all the present values from the Customer object and Account on Order cost setup creation.

Example:

Order for Customer A, Customer object B is populated on the order. Address is in Country NLD (Nederland), State GLD (Gelderland),
In Order cost setup, the following setup is present:

 

Based on this setup, the first line will be applied as Order cost, even though Customer object is higher in the sequence. This because it is more specific, it has a match with the State. 

5.  Based on the record found in step 4, a service item or additional charge is added to the sales quotation/order. When applying order cost on the order, the following fields are inherited from the order cost line to the order: Mode of delivery, Delivery terms and Delivery reason are inserted on the sales quotation/order.
   In the case the total amount of the sales order/quotation is above the corresponding threshold, no order costs or time slots are added to the sales order. Unless the parameter ‘Ignore threshold for order costs’ or ‘Ignore threshold for time slots’ is set to Yes the order costs are added anyway.
   

Exclude order costs (Mode of delivery)

If Exclude order costs is set to Yes the found order costs will NOT be applied. Note: this value can be inherited from the Mode of delivery. 

Setup

Parameters

Accounts receivable > Setup > Accounts receivable parameters > tab Sales order optimization

Field	Description
Enable order cost calculation	Enable order cost calculation. When enabled fields are visible and functionality is working.

Order costs as service item or additional charges	Add order costs as service item or as additional charges. Item code and Charge code are specified in form Order costs. If service item is chosen, the service item is added as an extra sales line. If additional charges is chosen, the charge is added to the charges on the sales header and/or lines (only if allocation is active).
Package type	Package type. Default package type, used when no package type is found in the setup.
Allow order cost calculation	Order costs calculation is allowed to be calculated until the specified sales order status. When this status is passed in the sales process the order costs can’t be recalculated anymore. The button is greyed out in that case.

Automatic order cost calculation when opening order complete screen

When opening the order complete screen the order costs are calculated/recalculated automatically.

Charges allocation

Charges allocation. Only used when order costs are added as additional charges and when charges are allocated from sales order header to sales order lines.

 

Allocate charges to lines

Allocate charges to lines. Only used when order costs are added as additional charges and when charges are allocated from sales order header to sales order lines.

Allocate all	Allocate all. Only used when order costs are added as additional charges and when charges are allocated from sales order header to sales order lines.
Stocked	Select this option to allocate charges only to stocked lines. Only used when order costs are added as additional charges and when charges are allocated from sales order header to sales order lines.

Allocate Charges

If enabled the charges from Order Costs will be allocated to the lines on the order. This parameter replaces the check if the feature is enabled. If this feature is disabled, and the parameter is enabled, the costs will still be redistributed to the lines.

Package types

Accounts receivable > Setup > Order costs > Package types

In this form package types, for example pallet, package, letter and box, can be set up.

Field	Description
Package types	Package type

Search priority	Search priority, used when more packaging types are found. The lowest number has the highest priority.
Description	Package type description.

Package type details

Accounts receivable > Setup > Order costs > Package type details

In this form package type details per package type can be set up. Package type details do consists of package dimensions (weight, volume etc.).

Field	Description
Package types	Package type

Shipping carrier	Shipping carrier
Country/Region	Country/Region
State	State
Maximum package weight	The maximum weight of the package. Total weight of all the items from the concerning order is compared against this value. Item weight is captured from physical dimensions of the item.
Maximum package amount	The maximum amount of the package. The total amount of the order is compared against this value.
Maximum packaging volume	The maximum volume of the package. Total volume of all the items from the concerning order is compared against this value. Item volume is captured from physical dimensions of the item.

Size	The maximum size of the package. The size is calculated based on the physical dimensions of the item, depth, width, height. It is calculated by adding up two times each of those measurements. See the calculation example.
Length	The maximum length of the package. The maximum length of the package. The length of the package is retrieved by a method which searches for the biggest measurement of the item, based on its physical dimensions.

Package size calculation example

Think of each  inventory item as a box with three key measurements:

• Depth (front to back)
• Width (side to side)
• Height (bottom to top)

The system calculates:

• A size metric based on the sum of all sides (Size)
• The largest single dimension of each item (Length)

 

1. Calculating Item Size
   
   To estimate how much space an item occupies, the system calculates a size value by doubling and summing each dimension:

This is similar to measuring the total outer edge of a 3D box — not its volume, but a perimeter-like approximation

Example:

2. • Depth = 3
   • Width = 2
   • Height = 1
   • Size = (2×3) + (2×2) + (2×1) = 12
     
3. Finding the Largest Dimension (Length)

To identify the most space-consuming side of an item, the system compares all three dimensions and selects the largest one.

Example:

• Depth = 3
• Width = 2
• Height = 1
• Largest dimension = 3

Aggregating across multiple items (the whole order)

When processing a collection of items, the system:

• Iterates through each item
• Calculates its size and largest dimension
• Adds the size to a running total, excluding the largest dimension (to avoid overcounting)
• Tracks the maximum dimension found across all items

This results in:

• A total adjusted size (sum of all items, minus their largest sides)
• The maximum dimension across the entire set

 

Order costs

Accounts receivable > Setup > Order costs > Order costs

In this form order costs can be set up. Layout of this form depends on how orders costs are added to the orders: as a service item or as an additional charge. Depending on the parameter setting fields are visible or hidden.

Field	Description
	Following fields are used for filtering (which Order cost line will be applied)

Valid for

Table: A specific customer Group: Group of customers with the matching Order costs group All: All customers

Customer relation	If Valid for is Group an order cost group can be entered. If Valid for is Table a specific customer can be entered.
Package type	Package type
Drop shipment	Is setup only applicable for drop shipment sales quotations or sales orders.
Country/Region	Setup is done for a specific country/region.
State	Setup is done for a specific state for the selected country/region.
From date	Setup is applicable from entered date.

To date

Setup is applicable to entered date.

Ignore threshold for order costs

Order cost threshold is ignored and order costs will be applied independent, even if the sales amount has pass the threshold.

Ignore threshold for time

Order cost threshold is ignored and time slots will be applied independent, even if the sales amount has pass the threshold. Only visible if Time slots functionality is enabled

Currency

Currency. Only visible when parameter “Order costs as service item or additional charges” is on Additional charges.

	Following fields will be pushed/inherit from the Order cost lien to the concerning order.
Always order costs	Order cost threshold is ignored and order costs are independent of sales amount and always added.
Mode of delivery	If the record is applicable for the sales order the mode of delivery is set with this value.
Delivery terms	If the record is applicable for the sales order the delivery terms are set with this value.
Delivery reason	If the record is applicable for the sales order the delivery reason is set with this value.
Order costs	Order costs amount added for the service item (unit price) or the additional charge (charges value).

Following settings are only visible when parameter “Order costs as service item or additional charges” is on Service item.

Service item

Service item used to add to sales quotation or sales order.

Apply discounts

Should discounts also apply to the service item.

Following settings are only visible when parameter “Order costs as service item or additional charges” is on Additional charges.

Additional costs charges code	Additional costs charges code.
Category	Fixed or Percentage. Should Order cost be applied as fixed amount or as a percentage of the sales order.
Keep	Keep the charges transaction after invoicing. This means that the charge is applied every time that you create a new invoice for the selected customer account.
Sales tax group
Item sales tax group
Allocate charges

Order cost group

Accounts receivable > Setup > Order costs > Order cost group

In this form order cost groups can be set up. The order cost group can be linked to customers who get applied the same order costs.

Field	Description
Order cost group	Order cost group can be linked to a customer. All customers with the same order cost group will get applied the same order costs.

Description

Description order cost group.

Order cost threshold groups

Accounts receivable > Setup > Order costs > Threshold > Order cost threshold groups

In this form order cost thresholds groups can be set up. The order cost threshold group can be linked to customers who get applied the same thresholds.

Field	Description
Order cost threshold group	Order cost threshold group. Order cost threshold group can be linked to a customer. All customers with the same order cost threshold group will get applied the same order costs threshold.

Description

Description order cost threshold group.

Order cost thresholds

Accounts receivable > Setup > Order costs > Threshold > Order cost thresholds

In this form order cost thresholds can be set up per customer, group or all customers.

Field	Description
Valid for	Valid for table, group or all. Is the setup valid for one customer, for a group of customers or for all customers.

Customer relation	If valid for is Group an order cost group can be entered. If valid for I Table a specific customer can be entered.
Threshold form	If the total order amount is below the value in this field, no order costs will be charged, unless parameter ‘Ignore threshold for order costs’ is set to Yes in the Order costs setup.
Threshold to	If the total order amount exceeds the value in this field, no order costs will be charged, unless parameter ‘Ignore threshold for order costs’ is set to Yes in the Order costs setup.

Customers

Accounts receivable > Customers > All customers > fast tab Miscellaneous details

In this form order cost thresholds can be set up per customer, group or all customers.

Field	Description
Order cost threshold group	Order cost threshold group applied to customer.

Order cost group

Order cost group applied to customer.

Sales origin

Sales and marketing > Setup > Sales orders > Sales origin

In this form set up can be done for order costs in the situation that order lines are created from outside. If no sales origin is filled on sales quotation or sales order functionality will behave as described below (so button Order costs has to be pushed).

Field	Description
Skip order costs	Skip calculation order costs on order update and upon order completion. If active, order costs are not calculated.

Calculate order costs

Should order costs be calculated automatically. If active, order costs will be calculated when order lines are inserted. If not active order costs will not be calculated when sales lines are inserted. However, order costs will be calculated upon order completion when parameter ‘Automatic order cost calculation when opening order complete screen’ is active.

Mode of delivery

Sales and marketing > Setup > Distribution > Mode of delivery

Field	Description
Exclude order costs	If the concerning Mode of delivery is set on a order, the value of the parameter Exclude order costs will be inherited on the order. If the value is Yes, the order will be excluded from order costs.

Sales quotation

Sales and marketing > Sales quotations > All quotations > Sales quotation header (Lines view) > tab Sales quotation header

Field	Description
Package type	Calculated package type from order cost calculation for this sales quotation.

Exclude order costs

If set to Yes, order costs will be calculated and the concerning Package type will be populated, but order costs will not be applied.

Drop shipment

Is sales quotation a drop shipment.

Sales and marketing > Sales quotations > All quotations > Sales quotation header > tab Quotation > button Order costs

Button	Description
Order costs	Executes order costs calculation for sales quotation. If applicable orders costs will be applied to the sales quotation as service item or as additional charge.

Sales and marketing > Sales quotations > All quotations > Sales quotation header > tab General> Order costs

Order costs

Displays all order costs applicable for this sales quotation, based on customer, order costs group on the customer and all.

Order costs thresholds

Displays all order costs thresholds applicable for this sales quotation, based on customer, order costs threshold group for that customer and all.

Sales orders

Sales and marketing > Sales orders > All sales orders > Sales order header (Lines view) > tab Sales order header

Field	Description
Package type	Calculated package type from order cost calculation for this sales order.

Exclude order costs

If set to Yes, order costs will be calculated and the concerning Package type will be populated, but order costs will not be applied.

Drop shipment

Is sales order a drop shipment.

Sales and marketing > Sales orders > All sales orders > Sales order header > fast tab Delivery > field Drop shipment

Field	Description
Drop shipment	Is sales order a drop shipment.

Sales and marketing > Sales orders > All sales orders > Sales order header > tab Sell > button Order costs

Button	Description
Order costs	Executes order costs calculation for sales order. If applicable orders costs will be applied to the sales order as service item or as additional charge. Button will be greyed out when status of sales order does not allow to calculate order costs (see parameter).

 Sales and marketing > Sales orders > All sales orders > Sales order header > tab General > Order costs

Button	Description
Order costs	Displays all order costs applicable for this sales order, based on customer, order costs group on the customer and all.

 

 Sales and marketing > Sales orders > All sales orders > Sales order header > tab General > Order costs thresholds

Button	Description
Order costs thresholds	Displays all order costs thresholds applicable for this sales order, based on customer, order costs thresholds group for that customer and all.