In Transportation Manager, the freight term Prepaid indicates that the shipper, or a 3PL acting on behalf of the shipper, pays the shipping costs. Collect indicates that the buyer of the goods pays the costs, for a shipper shipping to one of their customers. For a shipper managing a purchase order from one of their suppliers, the seller of the goods pays the costs.
In a 3PL environment, Collect indicates that the 3PL does not pay the costs upon delivery of the shipment. That is, the 3PL’s customer’s customer pays the costs. This is true whether this customer is the buyer of goods being delivered to a warehouse or the seller of the goods being shipped from a warehouse.
Freight Terms is maintained for both shipments and shipment legs. The value assigned to shipment legs is based on the shipment's Incoterms and Incoterms location and cannot be directly updated. For shipments where Incoterms are not defined, the value for the shipment will be assigned to all legs for the shipment.