Updating SO with SCO Costs | Support Advacarepharma

To manage freight cost and provide it to the Customer, Salesperson needs to use the following documents in the System:

• Quotation (SO);

• Shipping Cost (SCO).

This SOP will list the steps of how to use a SCO inside a SO in the System.

Getting started with an SCO (Shipping Cost)

Shipping cost is the freight cost that Shipping Line (CMA, MAERSK, OOCL, etc.) will charge for renting a container and space on the cargo vessel that will ship the goods from Port of Loading (country of origin) to Port of Discharge (destination country). Shipping Lines cooperate with local Freight Forwarders that arrange the transportation of cargo in the country of origin and destination country. Freight Forwarder is responsible to arrange the booking, receive and load the container and assist with export or import formalities. Logistics Dept. will get the Shipping Cost from the Freight Forwarder after providing the basic information about the cargo: description of the goods, Port of Loading and Port of Discharge, gross weight and CBM.

After Logistics person sent a comment in task mentioning that shipping cost has been uploaded, Salesperson needs to use this cost in the SO. SCO is a document that Logistics Dept. uses to record costs and pass them to Sales Dept. SCO can refer to Estimated Shipping Cost or Final Shipping Cost, depending on the type of the document.

• SCO is the document used to handle shipping costs from a Vendor, specifically a Forwarder. It reflects some important information inherited from the SO document: SO number, Destination Port (named as Destination Country in the SO), CBM and Total GW.

• Logistics Dept. will create the SCO as soon as possible after shipping costs are received from the Forwarder.

• Every Sales Order will have at least 2 SCOs: Estimated and Final (confirmed).

• Final Shipping Cost is the main document with final amount to be paid for freight cost.

• From the Final Shipping Cost it is possible to create and confirm a Purchase Order, which would be used to generate Bills and other documents later on.

SCO Types

SCOs have 2 main types of shipping costs that reflect the condition of the freight cost with a forwarder. These types are used in different situations, depending on the context of shipping process for the goods of the SO.

• Estimated: Intial type of shipping cost, used when Salesperson requires an estimated freight cost of the order to provide to the Customer for reference after RFQ is created.

• Final: This type of shipping cost is used after production has been completed, final payment received and the goods are ready to be shipped. Final Shipping Cost type is the final and most important type. This type of shipping cost allows Logistics Person to generate a PO document (for future Billing for the related Forwarder).

Note: Salesperson is responsible to add SCO to the SO, while Logistics Dept. creates SCO to quote the freight cost.

This document is mainly oriented to explain how to use SCO and add it to the SO. In future documentation, Shipping Cost (estimated and final) will be explained in more details, for Logistics Dept. purposes.

How to update SO with SCO cost

1. Locate the relevant SO in Sales module.

2. Click ‘Edit’.

Note: Make sure that you are editing the SO in Quotation stage. When the SO is in Sales Order stage, the shipping costs become uneditable.

3. Select ‘Shipping Cost’.

Note: If Shipping Cost document hasn't been created by Logistics Dept. for this SO, then there will be no shipping cost information displayed.

a) Click ‘Search More’.

b) Locate the shipping cost (SCO line) of your preference in the displayed pop-up. Choose the SCO line according to the Shipping Line, Cost, time En Route or other details.

Note: Only shipping costs related to this SO are displayed.

4. Click ‘Get Rate’ next to 'Delivery Method' field to see the Shipping Line and the cost and be able to add the cost to the SO.

5. Click ‘Add to order’ to add the Shipping Cost to the SO.

Note: 'Add to order' button adds the selected shipping cost as a service line in the SO.

6. After Shipping Cost is added, Salesperson must edit Profit field in the SO service pop up. This field reflects the profit margin for the service.

7. Edit the name of Shipping Cost line in the SO if necessary by changing 'Description' field in the pop up.

Note: 'Product' and 'Packaging' columns will not be shown in SC if it is exported with Shipping Cost line.

8. Click ‘SAVE’.

Note: To edit more information of the shipping cost service repeat the steps above.

9. Click ‘SAVE’.

Note: the shipping cost and all related costs have to be confirmed by Sales manager via task in SO chatter. If the customer had a history of shipments before, the costs from the pasts have to be provided in the same task for reference: