Shipping Rule In ERPNext

Shipping Rules refers to the charges that have been levied on the customer on their related order that we are shipping from warehouse to the customer location. That usually includes the main product price plus shipping charge.

In ERPNext we can manage the shipping rule that is usually calculated based on the three parameters as fixed, net total and net weight.

Let us see how we can manage the shipping rules in ERPNext:

Navigate to stock > item catalogue > shipping rule

Features:

1. Shipping Rule Label: Enter the label for the shipping rule in this field.

2. Shipping Rule Type: Choose between selling or buying. If selling is selected, the shipping method will apply to sales orders, and for buying, it will apply to purchase orders.

3. Company: Define a specific company for the shipping rule, ensuring that the method is exclusive to transactions within that company.

4. Shipping Account: Specify the chart of accounts associated with the shipping rule.

5. Cost Centre: Define a cost center for accounting purposes.

6. Calculate Based On: Select the calculation method for the shipping rule, such as fixed, net total, or net weight.

• Fixed: Set a fixed amount to be charged as a shipping rule.
• Net Total: Define multiple conditions based on the net total of the order. For example, if the order is between $500 to $2000, the shipping charge is $100.
• Net Weight: Establish multiple conditions based on the weight of the order. For instance, for orders weighing between 5 to 10 kg, the shipping charge is $200, and more rules can be added.

7. Restrict to Countries: Specify the countries for which the shipping method will be available.

Let us explore the example of how we can apply shipping methods in sales.

Navigate selling module > selling menu > sale order. 

Create a sale order and add an item to be sold, under the “taxes” menu select a shipping rule to be applied and based on that the shipping charge will be calculated for the customer.

To wrap it up, we can say that the Shipping rules in ERPNext provides a robust framework for organizations to streamline logistics operations, optimize shipping processes, and enhance the overall order fulfilment efficiency. By utilizing the flexibility and customization options provided by shipping rules, organizations can grow at par with evolving shipping requirements, reduce costs and improve customer satisfaction.

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Whether it is about defining shipping rates, automating shipping calculations, or just implementing complex shipping scenarios- ERPNext would empower your organization to manage their shipping operations with accuracy and ease.