E1: 49: Working with Routes and Rates in Transportation (P4950/P4970/P4978/P4906/P4980/P4960/P4915/P4945) (Doc ID 2262516.1)

A rate determines the cost of shipping product for inbound and outbound shipments to various locations.  The amount being paid to the carrier is referred to as payable freight.  The amount that is invoiced to customers for freight is called billable freight. 

A rate definition specifies the following:

• The basis for the rate such as weight, cubes, or distance.
• The structure for the rate, such as a flat rate, a one-dimensional lookup rate, a two dimensional lookup rate, or stored in the route.
• Whether the rate is payable, billable, or both.
• Whether discounts can be applied and if there are any rate parameters, including minimum and maximum charges or container dimension restrictions.

A route is the path that the shipment takes to the customer. When setting up a route, the origin and destination have to be defined as well as the available mode of transport, and available carrier for each route.  A rate schedule must also be assigned in order to link the route to a valid rate for the cost of shipping.