Simple way to Implement Container tracking in Sage X3

By | October 14, 2024
0 Comment

There is an existing module in Sage X3 as Container Management. This module contains multiple setup and accounting impacts in Sage X3.

The container management module in Sage X3, will help us to track the containers and vessel. This tracking will provide the details costing involved in the shipping of the product.

Below are the key feature of Container tracking in Sage X3:

Key Features and Benefits:

1. Tracking

The module will grant users to functionality to track containers and vessels, statuses, locations. This will help for better shipment management and reduces delays.

2. Cost Management:

For the cost incurred on containers being transported, businesses will be able to see all costs involved with the cost related to the shipment of container and other costs associated with it.

3. Setup and Configuration:

  • The Container Management module includes contains setup options, like Port, Duty Rate master, Automatic Journal Posting setup, this will help users to setup there required business process as per the requirements.
  • This setup will holds the rate from the Source Port to Destination Port.

4. Accounting Integration:

The module integrates with the accounting functions within Sage X3, ensuring that all costs related to container management are managed and reported in accounting books.

5. Enhanced Efficiency:

This automated tracking and management of containers, businesses can reduce manual errors and save time, resulting to error free data entry by user.

6. Reporting and Analytics:

The process will provide reporting capabilities, allowing users to analyze shipping data. This information will help to make the decision for future growth

Components Involved:

Setup:

1. Port Setup

We need to setup the ports which we are planning to use. Only this port will be available for drop down when we are making the vessel. Then we can use this port for further setup, This port setup contains the data such as name of Port, Country, Location.

2. Time Setup

After the ports are defined, we need to define the time to reach the ports.

  • Travel Time Definition: This involves calculation the average travel time based on various factors, such as distance, weather conditions.
  • Port to Shipping location: We are allowed to setup the data, for travel time needed from Port to destination warehouse.

3. Duty Rate Setup

  • MPF Fee Percentage: Merchandise Processing Fee is charged by the U.S. Customs Department to do clearance for imported goods. The percentage here should be set according to the protocol, but it should be customizable for future concerns. Hence there is the existing setup.
  • Harbor Maintenance Fee Percentage: We need to set Harbor Maintenance Fee Percentage, which is a charge for maintaining U.S. ports assessed on imported goods. This percentage will need to conform to the newest rules released by the government and cane be setup in Sage X3.
  • Excessive Rate: Come up with any excessive rates that might apply in a specific case. For instance, additional charges applied for expedited shipping or unusual types of cargo.
  • Additional Setup Needed: Determine any additional fees or charges specific to its shipping operations, such as charges for special handling, warehousing charges, or surcharges for the type of cargo.
  • Accounting setup: We will setup the automatic journal.

Transaction Overview for Container Management Module

1. Vessel Creation

The first step in the transaction process is to create a vessel in Sage X3.

  • Defining Ports: At the time of vessel Creation, users should define the Port of Discharge and the Port of Arrival. This information will help in planning and setting up the expectation.
  • Automated Calculations: According to the setup parameters, the system will calculate the estimated Arrival Dates as per Discharge Date entered.
  • Modifying Arrival Dates:In case of delays due to any reasons, users have the modify the Arrival Dates manually. This feature ensures that the system remains useful to real-world challenges.
  • Actual Arrival: The actual Arrival values are filled at the time of Vessel creation, but where as actual arrival dates are manually entered by user when the Vessel is actually arrived at Port.

2. Container Creation

After the vessel is created, we need to create the containers attached with that vessel.

  • Mandatory Vessel Selection: When we create the Container, we will be having the Vessel Number for selection, hence we need to Link the container to Vessel. The Vessel selection is mandatory to create the linking.
  • Multiple Purchase Orders: Users can select multiple Purchase Orders when creating a container. This feature will be consolidating shipments for calculation of shipping charges. The Purchase order line level selection is available to enable the costing according to line level in Sage X3.

3. Costs Involved in Container Management

  • Landed Cost at Header Level: The system will allow the user for the attachment of up to two different Landed Costs at the header level for the entire container. This could include any shipping cost as per the business requirement.
  • Landed Cost at Line Level:The Container tracking helps users to track up to five different Landed Costs at the line level for specific items within the container. This approach helps businesses to track costs effectively.
  • HMF and MPF Costs: Both the Harbor Maintenance Fee (HMF) and the Merchandise Processing Fee (MPF) are calculated at the line level, ensuring that these regulatory costs are factored into the pricing of individual items. This helps for details line level calculation according to custom and Porter authority.

4. Multiple Containers per Vessel

  • Scalability and Efficiency: This functionality helps businesses to maximize their shipping capabilities by merging shipments on one vessel, thereby optimizing logistics and reducing costs. This facilities helps process to consolidate the Container in a Vessel.

In-Transit Ownership Transfer and Purchase Transactions Overview

 1. In-Transit Ownership Transfer

Once a container is received the financial implications of the associated shipping costs is also mandatory to impact the costing.

  • Journal Creation: To account for the additional shipping costs incurred during transit, a journal entry must be created. This entry reflects the financial impact.
  • Executing In-Transit Ownership Transfer: The process will be executed by In-Transit Ownership Transfer for the specific container. This process will create the accounting impact of all the cost involved for that particular Container

2. Purchase Receipt

  • Container Tracking: Instead of linking to purchase orders, the system will allow users to track the container using the left list in Sage X3. This approach will skip the purchase Order tracking as the purchase order is tracked in the Container.
  • Dropdown of Line Level Purchase Orders: Since purchase orders are linked to the container, the left list will allow a dropdown that displays line-level details of the linked container and Purchase Order. This functionality helps users quickly access information about the goods being received from the container against the Purchase Order.

3. Purchase Invoice

Two distinct transactions are involved in managing purchase invoices:

  • Purchase Invoice (Stock): This transaction is specific on tracking the purchase receipt for goods that have been received. It ensures that the items are accurately reflected in the inventory providing a clear accounting of stock levels and costs of goods.
  • Purchase Invoice (Complimentary Invoice):
  • The second transaction involves creating invoices for different service providers related to the shipping process that are attached on container landed cost and other charges. This includes suppliers such as U.S. Customs Ports, freight forwarders, and shippers. The system calculates the necessary costs associated with these services based on the additional expenses incurred during shipping.
  • By generating these complimentary invoices, businesses can get that all costs are accounted for, allowing for cash flow management and financial reporting.