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Transportation in SAP

Transportation planning in SAP involves inbound and outbound logistics functions like shipment creation, cost calculation, and tracking. Key concepts include organizational transportation planning points, shipment documents to record planned shipments, and freight codes to classify goods. The system can determine legs and stages of a shipment, estimate costs, and later settle actual costs through financial accounting postings.

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112 views9 pages

Transportation in SAP

Transportation planning in SAP involves inbound and outbound logistics functions like shipment creation, cost calculation, and tracking. Key concepts include organizational transportation planning points, shipment documents to record planned shipments, and freight codes to classify goods. The system can determine legs and stages of a shipment, estimate costs, and later settle actual costs through financial accounting postings.

Uploaded by

amit76meerut
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Transportation in SAP

About Transportation
Inbound and outbound logistics
Vendor to manufacturer through
warehouse and manufacturer to
distributor to end customer through
warehouse

Fulfills demand and replenishment


requirement of supply chain
Basic functions are
Transportation planning
Shipment creation
Shipment cost calculation
Shipment cost settlement
Freight handling
Shipment tracking
Information sharing (advanced
shipping notification, shipment
confirmation, shipping manifest etc.)

Transportation Planning Concepts


Org unit -transportation planning point
Group of employees responsible for transportation planning activities,
when to ship, what to ship and how to ship

Assigned to company code


Shipment cost calculation and settlement

Shipment Document as the record of transportation planning,


status tracking and completion
No. range, whether shipment is inbound or outbound, leg determination,
type of shipment, mode of transportation, leg indicator
Individual ,Collective shipments, transportation chain
Number of deliveries, no. of departure points, no. of destination points, no. of
modes of transport

Multiple shipment documents (for each leg) is possible


Each mode of transport may require its own shipping papers
Different commercial terms on freight and insurance

Once a shipment document is created it is in planned status


Maintain transportation relevance for delivery types, delivery item types
and routes

LTL and FTL for planning truck load capacity utilization

Shipment Document Type Control

Type of shipment outbound or


inbound, loaded or unloaded
Shipping type in a specific leg (e.g.
truck)
Service level of cargo to be handled
Process control i.e. type of shipment
individual, collective and
transportation chain (unimodal or
multimodal)
Type of leg for the shipment document
How to adopt routes from delivery
How to determine different legs in
shipment
Whether shipment is relevant for GR
Output determination
Text determination
Control w.r.t. picking (shipment only
after picking is complete)

Shipment Document
Combine deliveries into one shipment
Specify shipment stages legs, border crossing, load transfer
Assign goods to handling units, assign service agent (CFR agents, customs
agents)
Specify planned transportation deadlines and record actual transportation
deadlines
Time required for organizing and planning various transportation activities are
stored

Generate output (shipping manifest, shipping notification, bill of lading)


Specify texts, specify any additional data, mention the external ids
(shippers number)
Handling units appear as means of transport
Packed deliveries can be repacked for shipment in new handling units, e.g.
containers
Tare weight and volume and weight and volume of packed unit

Once a planning status


is reached deliveries
cannot be added
or modified.
From Entity
Information Type
To Entity
A traffic light icon signifies the overall status (red for planning complete)
Shipper
Shipping
Order,
Service
Agent
Tendering status status
of (Sender)
the shipment
w.r.t. negotiations
with vendor
transportation info
Route and forwarding agent may be copied from deliveries if same all
Forwarding Agent
Advanced Shipment Customer
through and if status is planned
Information Flow

Other Master Data


Freight Codes are used as a means to classify the
goods by the freight forwarders
Specified on transportation papers
Used to identify the class of goods being handled
Grouped together in freight code sets
Are industry standards

Freight classes are made up of one or more freight


codes
Used in shipment costing

Freight code determination


Country of origin, shipping type and forwarding agent,
route
Freight code set, material freight group

Config required defining material freight group


and putting them in material master, defining
forwarding agents (vendor master), freight code set
and freight code determination
Shipment Stages
Geographical locations including legs, load transfer
points and border crossing points, transportation
connection points, shipping point, plant, warehouse no.,
dock door
Stages can be created manually in the shipment
document, entered into shipment header as part of the
route which already contains stages, or can be
determined as part of automatic leg determination

Leg Determination Process

Set the Planned status on the screen Overview Shipment in the shipment document. Choose
Leg determination on tab stages
The system calculates the shipment legs based on the leg determination indicator for the
shipment document type. It takes into account the shipping points and ship-to parties in the
deliveries, as well as the shipping type, the leg indicator, and the route and transportation
chain
Denote a transportation chain using multiple shipment documents

Category 1
Category 2

Category 3

Shipment Cost Processing


Shipment Cost Document Type
Shipment Cost Header
General status, control and administration info

Shipment Cost Item


Shipment header or a shipment stage, items include service agents, pricing date and
settlement date, tax amount, company code, plant, purchasing org

Shipment cost Sub items


Calculation of shipment costs carried out at this level
Can include single delivery items, deliveries, handling units etc.

Preconditions
Shipment document is relevant for shipment costing
At header, leg, load X, border X

Shipment must have a transportation status of atleast planned


Shipment must have a service agent (vendor)
Condition records to be maintained

After determination of freight cost we can simulate the transportation


costs (Freight Cost Estimate)

Example:
Shipment cost
calculation base
shipment cost

Shipment Cost Settlement


The settlement of shipment costs with the service agents is carried
out per shipment cost item
Settlement includes assignment and forwarding of shipment costs to FI and CO for
creating accruals and posting payables
Automatic settlement using self billing or manual settlement

The functions used during settlement are


Account Assignment

Relevant G/L account determination for every individual shipment cost item
Assignments for cost accounting

Relevant transfer to financial accounting

Purchase order is created for the service agent and the service entry sheet created
After accepting services accrual entries are created

Invoicing

Automatic using Self Billing or Evaluated Receipt Settlement (ERS)


Manual Invoicing

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