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Sandra Renick

Created on October 3, 2025

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Transcript

FREIGHT COST

This is the amount that a freight carrier charges Boelter to ship an order. When Boelter is charged for freight, this cost needs to be reflected by a ZBZ0 condition in the corresponding sales order/debit memo.

Correctly applying the ZBZ0 condition ensures freight costs are accurately accounted for and passed along when appropriate.

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FREIGHT FACTOR

In the context of applying freight to an item number in SAP, the "freight factor" typically refers to a multiplier or percentage used to calculate the freight costs associated with transporting a particular item. This factor accounts for various factors such as distance, weight, volume, or other shipping-related parameters that influence the overall freight expenses incurred for the item.

Freight Factors help achieve more precise costing and pricing strategies while effectively managing logistics expenses within the supply chain.

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When setting up freight conditions in SAP, Boelter's Supply Chain teams may define freight factors for different items or item categories to reflect the varying shipping costs associated with each product. These factors are then used in conjunction with other parameters, such as shipping distance or carrier rates, to calculate the total freight charges applicable to each item.

The ZBZ0 condition type in SAP ensures that freight costs are properly tracked and billed, either to the customer or absorbed internally—helping maintain accurate pricing and margin reporting.