Shipping & Freight Forwarding Knowledge Base

Shipping & Freight Forwarding Module Knowledge Base

Complete User Guide for Freight Forwarding Operations

Table of Contents

  1. Module Overview
  2. Getting Started
  3. Master Data Configuration
  4. Enquiry Management
  5. Quotation Management
  6. Job Management
  7. Job Costing
  8. Vendor Invoice Processing
  9. Reports
  10. Account Settings
  11. Workflow Diagrams
  12. Troubleshooting & FAQ

1. Module Overview

1.1 What is the Shipping & Freight Forwarding Module?

The Shipping & Freight Forwarding module is a comprehensive freight forwarding management system designed for freight forwarders, NVOCC operators, and logistics companies. It provides end-to-end management from customer enquiry to job completion, including:

  • Enquiry Management: Capture and track customer freight enquiries
  • Quotation Management: Create and send professional quotations
  • Job Management: Complete job lifecycle from booking to delivery
  • Job Costing: Revenue and cost tracking with profitability analysis
  • Vendor Invoice Validation: Match vendor invoices against job costs
  • Multi-Currency Support: Handle international transactions in multiple currencies

1.2 Key Features

Feature Description
Multi-Mode Support Sea (FCL/LCL), Air, and Land freight
Incoterms Integration Complete Incoterms 2020 support
Container Management Track containers with detention/demurrage
Document Management Generate BL, AWB, and shipping documents
Multi-Currency Automatic exchange rate handling
Job Profitability Real-time margin tracking

1.3 Workflow Overview

Enquiry → Quotation → Acceptance → Job Creation → Operations → Invoicing → Closure

1.4 Job Directions

Direction Description
Import Goods arriving into the country
Export Goods departing to foreign destination
Cross-Trade Third-party shipments (origin and destination are foreign)
Domestic Internal freight movements

2. Getting Started

2.1 Module Activation

  1. Navigate to System > Module Configuration
  2. Locate the Shipping & Freight Forwarding module
  3. Click the toggle to enable the module
  4. The Logistics menu will appear in the navigation drawer

2.2 Initial Setup Checklist

Complete these setup steps before creating jobs:

  1. Ports - Define ports of loading and discharge
  2. Vessels - Register vessels and aircraft for sailing schedules
  3. Shipping Lines - Add carrier/liner information
  4. Airlines/Carriers - Register air cargo carriers
  5. Container Types - Define container specifications
  6. Cargo Types - Create cargo classification
  7. Charge Types - Define revenue and cost charge codes
  8. Job Types - Configure job type classifications
  9. Job Modes - Set up transport modes
  10. Account Settings - Link GL accounts for posting

The Logistics module is organized into these sections:

Section Purpose
Master Data Reference data configuration
Enquiries Customer enquiry management
Quotations Quotation creation and tracking
Jobs Job lifecycle management
Settings Module configuration
Reports Analytics and operational reports

3. Master Data Configuration

3.1 Ports

Ports are critical for routing and documentation.

To create a port:

  1. Navigate to Logistics > Master Data > Ports
  2. Click Add New
  3. Enter:
    • Port Code: UN/LOCODE (e.g., AEJEA for Jebel Ali)
    • Port Name: Full name
    • Country: Country code
    • Port Type: Sea, Air, or Inland

Common UAE Ports:

Code Name Type
AEJEA Jebel Ali Sea
AEAUH Abu Dhabi Sea
AEDXB Dubai Airport Air
AESHJ Sharjah Sea/Air

3.2 Vessels

Register vessels for sailing schedules and BL generation.

To add a vessel:

  1. Navigate to Logistics > Master Data > Vessels
  2. Click Add New
  3. Enter:
    • Vessel Code: Unique identifier
    • Vessel Name: Official name
    • Vessel Type: Container, Bulk, RoRo, Aircraft
    • IMO Number: International Maritime Organization number
    • Flag: Country of registration
    • Shipping Line: Operating carrier

3.3 Shipping Lines

Shipping lines are the ocean carriers.

To add a shipping line:

  1. Navigate to Logistics > Master Data > Shipping Lines
  2. Click Add New
  3. Enter:
    • Code: SCAC code (e.g., MAEU for Maersk)
    • Name: Company name
    • Contact Details: Address, phone, email
    • NVOCC: Whether they're an NVOCC operator

Major Shipping Lines:

Code Name
MAEU Maersk Line
CMDU CMA CGM
MSCU MSC
HLCU Hapag-Lloyd
EGLV Evergreen

3.4 Airlines/Carriers

Register air cargo carriers.

To add a carrier:

  1. Navigate to Logistics > Master Data > Airlines/Carriers
  2. Click Add New
  3. Enter:
    • Carrier Code: IATA airline code
    • Name: Airline name
    • Contact Details: Address, phone
    • Cargo Terminal: Default cargo handling agent

3.5 Container Types

Define container specifications for FCL shipments.

Standard Container Types:

Code Description Length TEU
20GP 20' Standard 20 ft 1.0
40GP 40' Standard 40 ft 2.0
40HC 40' High Cube 40 ft 2.0
20RF 20' Reefer 20 ft 1.0
40RF 40' Reefer 40 ft 2.0
20OT 20' Open Top 20 ft 1.0
40FR 40' Flat Rack 40 ft 2.0

Container Properties:

  • Dimensions (L × W × H)
  • Max payload weight
  • Tare weight
  • Is Reefer (temperature controlled)
  • Is Hazmat capable

3.6 Cargo Types

Classify cargo for documentation and handling.

Common Cargo Types:

Code Name Handling
GEN General Cargo Standard
HAZ Hazardous Goods IMO certified
REF Refrigerated Temperature controlled
OOG Out of Gauge Special equipment
VAL Valuable Cargo Enhanced security
PER Perishables Priority handling

Cargo Properties:

  • Category (General, Hazardous, Temperature Sensitive)
  • Temperature range (for reefer)
  • Special handling requirements
  • Documentation requirements

3.7 Charge Types

Define charges for revenue and cost tracking.

To create a charge type:

  1. Navigate to Logistics > Master Data > Charge Types
  2. Click Add New
  3. Enter:
    • Code: Short identifier
    • Name: Description
    • Category: Revenue or Cost
    • Default Currency: Typical billing currency
    • Tax Code: Applicable VAT/tax code

Standard Charge Categories:

Revenue Charges:

Code Name
OFRT Ocean Freight
AFRT Air Freight
THC Terminal Handling
DOC Documentation Fee
CLR Customs Clearance
DLV Delivery

Cost Charges:

Code Name
COFR Ocean Freight (Cost)
CAFR Air Freight (Cost)
CTHC Terminal Handling (Cost)
CCLR Customs Clearance (Cost)

3.8 Job Types

Classify jobs by trade direction and service type.

Standard Job Types:

Code Direction Description
SFIM Import Sea Freight Import
SFEX Export Sea Freight Export
AFIM Import Air Freight Import
AFEX Export Air Freight Export
LFIM Import Land Freight Import
LFEX Export Land Freight Export
CRTR Cross-Trade Third Party Shipments

3.9 Job Modes

Define transport modes for job numbering.

Standard Job Modes:

Code Mode Job Prefix
SEA Sea Freight S
AIR Air Freight A
LND Land Freight L
MUL Multimodal M

4. Enquiry Management

4.1 Creating an Enquiry

  1. Navigate to Logistics > Enquiries > New Enquiry
  2. Fill in the details:

Customer Information:

  • Customer name (select from AR customers)
  • Contact person
  • Contact details

Shipment Details:

  • Origin port/airport
  • Destination port/airport
  • Transport mode (Sea, Air, Land)
  • Cargo type
  • Incoterms
  • Estimated volume/weight

Special Requirements:

  • Hazardous goods
  • Temperature requirements
  • Time-sensitive
  • Insurance required
  1. Click Save Enquiry

4.2 Enquiry Status Flow

Status Description
New Just created
In Progress Being processed
Quoted Quotation sent
Won Converted to job
Lost Not awarded
Cancelled Enquiry cancelled

4.3 Enquiry Follow-up

Track follow-up activities:

  1. Open the enquiry
  2. Add notes and activities
  3. Schedule follow-up reminders
  4. Update status as needed

5. Quotation Management

5.1 Creating a Quotation

  1. Navigate to Logistics > Quotations > New Quotation
    • Or click Create Quotation from an enquiry
  2. Fill in:

Header Information:

  • Customer
  • Reference enquiry (if applicable)
  • Validity period
  • Terms and conditions

Route Details:

  • Origin and destination
  • Transport mode
  • Transit time
  • Vessel/carrier (if known)

Charges: Add line items for each charge:

  • Charge type
  • Description
  • Quantity
  • Unit price
  • Currency
  • Tax code
  1. Click Save or Save and Send

5.2 Quotation Numbering

Quotations are automatically numbered:

QT-YYMM-SEQUENCE
Example: QT-2412-00015

5.3 Quotation Status Flow

Status Description
Draft Being prepared
Sent Submitted to customer
Accepted Customer accepted
Rejected Customer declined
Expired Past validity date
Revised New version created

5.4 Converting to Job

When a quotation is accepted:

  1. Open the quotation
  2. Click Convert to Job
  3. Review pre-filled job details
  4. Add any additional information
  5. Click Create Job

6. Job Management

6.1 Creating a New Job

  1. Navigate to Logistics > Jobs > New Job
  2. Fill in:

Job Header:

  • Job type (Import/Export)
  • Transport mode
  • Customer
  • Shipper/Consignee

Routing:

  • Port of Loading (POL)
  • Port of Discharge (POD)
  • Final destination
  • Place of delivery

Vessel/Flight:

  • Vessel name or flight number
  • ETD (Estimated Time of Departure)
  • ETA (Estimated Time of Arrival)
  • Voyage/flight number

Cargo Details:

  • Cargo description
  • Commodity code
  • Number of packages
  • Gross weight
  • Volume (CBM)

Containers (for FCL):

  • Container type
  • Container number
  • Seal number
  1. Click Save Job

6.2 Job Numbering

Jobs are numbered automatically:

[MODE][DIRECTION]-YYMM-SEQUENCE
Examples:
- SI-2412-00001 (Sea Import)
- AE-2412-00002 (Air Export)

6.3 Job Status Flow

Status Description
Draft Job being prepared
Confirmed Booking confirmed
In Transit Cargo on the move
Arrived Reached destination
Delivered Cargo delivered to consignee
Completed Job closed with all costs
Invoiced Customer invoice generated
Closed Fully settled

6.4 Container Tracking

For FCL shipments, track container status:

  1. Navigate to job details
  2. Click Containers tab
  3. For each container:
    • Container number
    • Seal number
    • Status (Empty/Stuffed/In Transit/Delivered)
    • Location
    • Detention/Demurrage tracking

6.5 Detention and Demurrage

Detention: Charges for container held outside terminal beyond free days

Demurrage: Charges for container held inside terminal beyond free days

Track free days and calculate charges:

  1. Enter container pickup/return dates
  2. System calculates free days
  3. Excess days × daily rate = D&D charge

7. Job Costing

7.1 Revenue Entry

Add revenue charges to the job:

  1. Open the job
  2. Navigate to Costing tab
  3. Click Add Revenue
  4. Enter:
    • Charge type
    • Description
    • Bill to (Customer/Agent)
    • Quantity
    • Rate
    • Currency
    • Exchange rate

7.2 Cost Entry

Add cost charges to the job:

  1. In Costing tab
  2. Click Add Cost
  3. Enter:
    • Charge type
    • Description
    • Vendor
    • Quantity
    • Rate
    • Currency
    • Exchange rate
    • Invoice reference (if received)

7.3 Profitability Analysis

View real-time profitability:

Metric Formula
Total Revenue Sum of all revenue charges
Total Cost Sum of all cost charges
Gross Profit Revenue - Cost
Margin % (Profit / Revenue) × 100

7.4 Costing Templates

Save time with pre-defined costing templates:

  1. Create template with common charges
  2. Apply template to new jobs
  3. Adjust quantities and rates as needed

8. Vendor Invoice Processing

8.1 Invoice Entry

Process vendor invoices against job costs:

  1. Navigate to Logistics > Jobs > Vendor Invoices

  2. Click New Invoice

  3. Enter:

    • Vendor
    • Invoice number
    • Invoice date
    • Due date
    • Currency

  4. Match invoice lines to job costs:

    • Select job
    • Select cost line
    • Enter invoice amount
    • Verify rate

  5. Click Post Invoice

8.2 Variance Handling

When invoice amount differs from estimated cost:

Scenario Action
Over estimate Credit variance to job P&L
Under estimate Debit variance to job P&L
Within tolerance Auto-adjust cost

8.3 Invoice Status

Status Description
Draft Entry in progress
Matched Linked to job costs
Posted Posted to AP
Paid Payment processed
Disputed Under review

9. Reports

9.1 Job Register

Complete listing of all jobs.

Filters:

  • Date range
  • Job type
  • Status
  • Customer
  • Origin/Destination

Columns:

  • Job number
  • Customer
  • Route
  • ETD/ETA
  • Status
  • Revenue
  • Cost
  • Profit

9.2 Profitability Report

Analyze job profitability.

Grouping Options:

  • By customer
  • By job type
  • By salesperson
  • By period

Metrics:

  • Number of jobs
  • Total revenue
  • Total cost
  • Gross profit
  • Margin %

9.3 Vendor Analysis

Review vendor performance and spending.

Metrics:

  • Total spending by vendor
  • Average cost per job
  • Invoice processing time
  • Variance history

9.4 Open Jobs Report

List of incomplete jobs.

Filters:

  • Status
  • Age (days open)
  • Missing costs
  • Pending invoices

10. Account Settings

10.1 GL Account Mapping

Link logistics transactions to GL accounts:

  1. Navigate to Logistics > Settings > Account Settings
  2. Configure accounts for:
Transaction Type Account
Freight Revenue Income account
Service Revenue Income account
Cost of Freight COGS account
WIP (Work in Progress) Asset account
Accrued Costs Liability account

10.2 Default Settings

Configure module defaults:

  • Default currency
  • Default tax code
  • Auto-numbering prefixes
  • Free days for D&D
  • Default charge types

11. Workflow Diagrams

11.1 Standard Job Flow

Customer Enquiry → Rate Quotation → Customer Acceptance
                                          ↓
                    Job Booking → Carrier Booking → Cargo Receipt
                                          ↓
                    Documentation → Vessel Loading → In Transit
                                          ↓
                    Vessel Arrival → Customs Clearance → Delivery
                                          ↓
                    Vendor Invoicing → Customer Invoicing → Job Close

11.2 FCL Import Flow

Shipping Instructions → Space Booking → Container Release
                                              ↓
                        Stuffing → Port Entry → Vessel Loading
                                              ↓
                        Ocean Transit → POD Arrival → Container Offload
                                              ↓
                        Customs Declaration → Duty Payment → Delivery Order
                                              ↓
                        Container Pickup → Destuff → Empty Return

11.3 Air Freight Flow

Booking → Cargo Receipt → Export Customs → AWB Issuance
                                    ↓
                    Flight Loading → Air Transit → Flight Arrival
                                    ↓
                    Import Customs → Cargo Release → Delivery

12. Troubleshooting & FAQ

Q: Can't create a job?

A: Verify:

  1. Customer exists in AR module
  2. Required master data is configured (ports, charge types)
  3. Job numbering sequence is active
  4. User has job creation permission

Q: Revenue not showing correctly?

A: Check:

  1. Correct charge type selected
  2. Exchange rate entered for foreign currency
  3. Bill-to party is assigned
  4. Job status allows revenue entry

Q: Container D&D calculation wrong?

A: Verify:

  1. Container type has correct free days
  2. Pickup/return dates are accurate
  3. D&D rate table is configured
  4. Weekend/holiday exclusions are set

Q: Vendor invoice won't match?

A: Ensure:

  1. Cost line exists on the job
  2. Cost is not already matched
  3. Currency matches or exchange rate entered
  4. Amount is within tolerance

Q: Job not closing?

A: Complete these steps:

  1. All costs are entered and matched
  2. Customer invoice is generated
  3. No pending vendor invoices
  4. All containers are returned (for FCL)

Q: Profitability showing negative?

A: Review:

  1. All revenue charges are entered
  2. Costs are correctly categorized
  3. Exchange rates are current
  4. No duplicate cost entries

Appendix: Incoterms 2020 Reference

Term Full Name Risk Transfer
EXW Ex Works Seller's premises
FCA Free Carrier Named place
CPT Carriage Paid To Destination
CIP Carriage & Insurance Paid Destination
DAP Delivered at Place Destination
DPU Delivered at Place Unloaded Destination
DDP Delivered Duty Paid Destination
FAS Free Alongside Ship Port of shipment
FOB Free on Board On vessel
CFR Cost and Freight On vessel
CIF Cost Insurance Freight On vessel

Appendix: Job Status Codes

Code Status Description
DRF Draft Job in preparation
CNF Confirmed Booking confirmed
INT In Transit Cargo moving
ARR Arrived At destination
DLV Delivered Cargo released
CMP Completed All operations done
INV Invoiced Customer billed
CLS Closed Fully settled
CAN Cancelled Job cancelled
HLD On Hold Temporarily paused

The Logistics Knowledge Base is accessible from the main navigation under Shipping & Freight Forwarding > Shipping Knowledge Base.

Last Updated: December 2024 Version: 1.0
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