Either, depending on how you configure it. Dynamic Ship has a freight line setting with automatic and manual options, and automatic is the default behavior most people see in a demonstration: generate the label and the charge line appears on the sales order without anyone typing it. The setting exists globally and can also be controlled per order, so a business can automate the normal case and still handle exceptions by hand.
What Gets Written Back
When a label is generated, Dynamic Ship records both sides of the transaction. The actual shipping cost, meaning what the carrier charges you, is recorded against the shipment. The price charged to the customer is calculated from your freight price rules and written to the order as the freight line. Both values are visible on the order, which is what makes shipping margin per order a question you can answer rather than estimate. The tracking number is written back as well.
The freight charge can post to a general ledger account or to a resource, so the accounting treatment follows whatever convention the business already uses for freight revenue. If the freight line is set to manual, the cost and tracking information are still captured; only the customer-facing charge line waits for a person.
A simpler version of the same idea exists in Order Ship Express, which applies a markup percentage per carrier and writes both the charged price and the actual cost back to the order. This is a completely free app from Insight Works for Business Central. What it does not offer is the conditional rule set described below.
How the Charged Amount Is Calculated
Freight price rules do the work here, and they combine rather than compete. A rule can apply a markup percentage, a discount, a fixed price, or a handling surcharge, and rules can be defined for a specific customer, a customer ship-to address, a customer group, or all customers. Conditions such as order value can also drive the outcome.
A useful example from the demonstration: a customer with an order above a defined value threshold receives free shipping, and the order shows both a marked-up freight charge and a matching full discount rather than simply showing nothing. The customer sees what shipping would have cost and sees that it was waived, while the business still has the actual cost recorded against the shipment. That is a deliberate design choice, and it produces a more transparent invoice than suppressing the line entirely.
Manually Recorded Freight Works the Same Way
The automation is not limited to electronically rated shipments. When freight is arranged outside the system, through a broker or a phone call, Dynamic Ship provides an external carrier entry where the shipper records the carrier, the cost, the transit days, and the tracking reference. From that point the behavior is identical: freight price rules apply, the calculated charge lands on the sales order, and the tracking reference is recorded. For a business with a mix of automated parcel and manually brokered freight, this keeps the order accurate regardless of how the rate was obtained.
Relevant Tools
Dynamic Ship generates the label, records the actual carrier cost, applies freight price rules, and writes the freight charge line to the sales order against a general ledger account or resource.
Order Ship Express applies a simpler version of the same idea for domestic parcel, using a per-carrier markup percentage and writing both the marked-up price and the actual cost back to the order.
The short answer, then, is that the freight line is automatic by default and manual by choice. The more useful point is that cost and price are recorded separately either way, which turns freight from an untracked expense into a line a controller can actually report on.