Understanding the Default Order Shipping Amount Logic

The shipping price is how much you are charging the customer for delivering the products. You can review an explanation of the current shipping price for an order by clicking the Shipping Info icon () next to the PSO flag:

The logic behind the shipping price of an order consists of several relevant factors organized in a hierarchy. If one factor applies, subsequent factors are ignored.

  1. Is the Prevent Shipping Override flag marked? The default logic is skipped and any shipping price must be entered manually. Updates to your costs as shipments go out are not applied to the order.
  2. Is the order's Delivery Type field set to Pick Up or Not Applicable? The default logic is skipped, the shipping price is set to zero, and the PSO flag is marked.
  3. Is the order qualified for free shipping? The default logic is skipped, the shipping price is set to zero, and the PSO flag is marked.
  4. Is the customer's Ship Rate Type field set with one of the following options? (Note: This feature is configured at the Company detail view > Customer Details tab > Billing Setup section.)
    •  Fixed Price — The default logic is skipped, the shipping price is set to the customer's Rate Value, and the PSO flag is marked. 
    • Fixed Mark Up, Mark Up %, Margin % — The shipping price is initially set to the customer's Rate Value. Additional updates as shipments go out are applied to the initial shipping price.
  5. The default logic transfers the shipping cost from the related shipments to the shipping price.
    Your actual shipping cost for an order is the sum of the related shipments. This is found on the Management tab's Shipping sub-tab: