The Load Margin Inquiry allows a user to view the anticipated profit for a load.
This page displays either one or two tabs:
Both Tabs will have the same layout (a Total section and a read-only grid) but values will be computed differently, according to the pro-ration method used for the selected tab (that is, cost vs. distance).
Total Cost Amount in the Load Cost section is displayed in the Rating Currency of the applicable tariff; all other amounts will be expressed in the user’s currency.
Rating can be accessed from the load gross margin inquiry screen: the Rate button will trigger load rating for load not attached to a trip and trip rating for loads that are attached.
Desired Gross Margin is displayed on the Load Gross Margin page when the Maintain Load Gross Margins flag is enabled in the Global Settings.
Tax amounts will be excluded from all gross margin calculations.
Pro-Rated Totals / Gross Margin Section
This section displays totals for the corresponding columns in the shipments grid:
Note that even after all legs of a transaction are "complete" the Load Margin inquiry could still be impacted if an additional Post Charge or Miscellaneous Voucher is created or modified for the load or for one of the attached shipments.
Shipments Grid
The grid displays one row for each shipment leg attached to the load.
Direct Distance is the distance between the Origin and Destination for Shipment Leg. The load may or may not move directly between these two locations.
From the Distance Based Pro-Ration tab, the Pro-Ration Revenue Allocation Factor will be computed as the Direct Distance for the Leg over the Total of Direct Distance for all Legs on the load. From the Cost Based Pro-Ration tab, the revenue would be allocated in proportion to the costs incurred for each leg.
Pro-Rated Revenue Amount is computed as: Total Revenue * Revenue Allocation Factor.
Pro-Rated Cost Amount is computed as the Shipment Leg’s share of Total Load Cost. In order to compute this amount, the Load Pro-Ration routine will be invoked. This will:
Suppose the revenue for a shipment was $1000 and that the shipment has an itinerary with two legs with costs of $400 and $100 respectively. Also assume the direct distance for the first leg is 900 miles and 100 miles for the second leg. If pro-ration was done by Cost, the revenue allocation would be $800 to the first leg and $200 to the second leg; if pro-ration is based on Distance, the revenue allocation would be $900 to the first leg and $100 to the second leg.
It will usually be necessary to use Distance as the basis for allocation until all legs have been routed and rated. After that point, allocation by Cost would usually provide a more accurate prediction of load profitability. Continuing the example, suppose it is the first leg that is attached to the load for which margin is being presented. There might be an interval when a cost had not yet been established for the second leg. If a user were to request the Gross Margin inquiry for the load to which the first leg is attached before the cost for second leg has been established, the "Cost" orientation of the Gross Margin inquiry would not portray an accurate picture of the true profitability of the load. It is acknowledged that the "Distance" orientation is an approximation and may not accurately reflect the eventual distribution of costs.
Even if Miscellaneous A/P Vouchers have been recorded against the Shipment, the costs cannot be attributed to a specific leg of the shipment. Therefore, the amounts associated with Miscellaneous A/P Vouchers will simply be treated as additional legs on the shipment itinerary. If a shipment has two legs, one with a cost of $400 and the other with a cost of $200 but also has a Miscellaneous A/P Voucher for $200, 25% of the Revenue will be allocated to the "leg" represented by the Miscellaneous A/P Voucher.
Since there is no distance associated with a Miscellaneous A/P Voucher, the Distance Based Pro-Ration tab will not consider these vouchers when pro-rating shipment revenue to associated shipment legs. Since the Anticipated Gross Margin in the Load table is computed using distance based pro-ration, the Gross Margin Percentage presented on the Distance Based Pro-Ration tab will be equal to the percentage in the load table.