Break-Weight and Clipping Calculation Method Types

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Break-Weight and Clipping Calculation Method Types

The calculation methods are used in SAP TM to calculate transportation charges based on specific logic. It helps to calculate charges as standard, Break-Weight or Clipping.

The Calculation methods are defined in TM system in SPRO as.

Transportation Management under Basic Functions Charge Calculation Enhancements of Charge Calculation Engine Define Calculation Methods.

You specify a calculation method for each charge type when defining a calculation sheet. If you do not choose the type of calculation method, the system uses the standard calculation method.

As a first step for clipping and break-weight to work "Rel calc method" check box should be checked in the Rate Table.

Please see the following thread for more details.

Charge Calculation - Clipping Method

Break-Weight

The system calculates the transportation charges by comparing and selecting the lower rate from either the actual rate range or the lower end of the next rate range. Break-weight is the weight from which it is cheaper to calculate the rate as opposed to the actual weight of the goods to be transported. One of the scales in the rate must be weight.

Example

You are shipping 490 kg and are using the following break-weights and rates:

Weight Scale	Rate
>= 100 kg	USD 10 per kg
>= 500 kg	USD 8 per kg
>= 1000 kg	USD 6 per kg

Using the standard calculation method, the system calculates the transportation charges as USD 4900 (490 kg * USD 10).

Using the break-weight calculation method, the system checks if it is cheaper to use the rate for the original rate range (USD 10 per kg for >=100 kg) or the next rate range (USD 8 per kg for >=500 kg). Since the next rate range is cheaper, the system considers the 490 kg as being >= 500 kg and calculates the transportation charges as USD 4000 (500 kg * USD 8).

Clipping

The system calculates the transportation charges by working through all scales level-by-level, even if the value lies outside the scale. The system then totals up the calculation results from each scale level to produce the overall result. For clipping, one scale item must have a relative calculation type.

Example

The scale levels are defined with the following values:

• Up to 5 tons: USD 50 absolute
• Up to 7 tons: USD 14 per ton
• Up to 10 tons: USD 13 per ton
• Up to 15 tons: USD 12 per ton

Using the clipping calculation method for a load weighing 12 tons, the system calculates the transportation charges as follows:

• 5 tons at USD 50 = USD 50 (first scale level)
• 2 tons at USD 14 per ton = USD 28 (up to the second scale level)
• 3 tons at USD 13 per ton = USD 39 (up to the third scale level)
• 2 tons at USD 12 per ton = USD 24 (remainder in the fourth scale level)

This results in a charge of USD 141. If you do not use the clipping calculation method, the 12 tons fall into the "up to 15 tons" scale level and the transportation charge is USD 12 per ton, resulting in a charge of USD 144.