Break-Weight Calculation 

Use

Break-weight calculation is required for several shipment contracts. In break-weight calculation, the system calculates at what weight onwards the price becomes cheaper, in order to get to a higher and more reasonable pricing scale level.

You have agreed on shipment rates where at scale level 5 to 10 tons of weight to be shipped the price is 6 USD per 100 kg, and at scale level 10 to 15 tons of weight to be shipped the price is only 5 DM per 100 kg. These are "From" scales, that is, from 10 tons onwards, the system calculates the price according to the second scale level. So, if you have a shipment of 9 tons, the break-weight calculation is that the price is cheaper if 10 tons are charged (= 500 USD) rather than 9 tons (= 540 USD). The break weight is the weight starting from which it is cheaper to calculate 10 tons rather than the real weight. In this example, the break weight is between 8.3 and 8.4 tons.

Features

During break-weight calculation, the use of two condition types is necessary. The first condition type is used for "standard" calculation of the shipment costs. The second condition type is used for calculation of the shipment costs at the next higher scale level. Now the system compares the two calculated values using a type of exclusion procedure and takes the most reasonable value as the price.

Activities

You create the second condition type with a reference to the first condition type (can be set using the fields Reference condition type and Reference application). The second condition type, therefore, uses the same condition records as the first condition type. When you assign the scales, select the break-weight indicator only for the second condition type. This indicator has the effect that, when the shipment costs are calculated, the next higher scale level is used for the calculation. Therefore, two calculations take place: in the "standard" way" and at the next higher scale level. With multi-dimensional scales, you set the indicator in the scale where the break-weight is to be calculated (in the case of a condition type that contains a distance and weight scale, for example, you could set the indicator in the weight scale). When the shipment costs are calculated by the system, it compares the costs. For this purpose, you need to define a condition exclusion group, assign both condition types to the exclusion group, and then specify the exclusion procedure. The cheaper cost between the condition types. You then assign the exclusion procedure to your calculation procedure.

If you wish to first consider the surcharges and discounts before you execute and compare the calculations, define two exclusion groups, assign a condition type plus surcharges and discounts to an exclusion group, and select the exclusion procedure The cheaper cost between the exclusion groups.