Transportation in SAP

Shipment QuotationContactSchedulingagreementOrderDeliveryGoods issueShipmentInvoiceAccounts ReceivableMaterial StockAccountInquiryContractPre-SalesPre-SalesSales OrderProcessingSales OrderProcessingDelivery/TransportationDelivery/TransportationTransfer OrderBillingBillingPayment/AccountingPayment/AccountingMaterials ManagementMaterials ManagementProduction PlanningProduction PlanningInventory SourcingInventory SourcingSales Information SystemSales Information SystemOrder Management ProcessCustomerWarehouse ClerkAccounts ReceivableEventSales Order EntryCustomer Needs to Buy ProductAR= Accounts Receivable, COGS = Cost of Goods Sold Delivery NoteCreate Delivery plus Picking and PackingBilling DocumentSales BillingBilling including Freight CostTransportation PlanningDetermine Shipment CostPost Goods IssueARIncoming Payment (157)Closing Operations SD (203)Order ConfirmationInventory COGSSales AdministrationCreate & Complete Shipment DocumentAllocation RunOrder Confirmation(Print Sales Order)

Check IDOC Processing for Shipping NotificationOutput with EDI?YesNoAbout TransportationBasic functions Transportation planningShipment creationShipment cost calculationShipment cost settlementInformation sharing (advanced shipping notification, shipment confirmation, shipping manifest etc.)

Transportation Planning ProcessFunctionsAcquire Service AgentOrganize Means of TransportSpecifying RouteThe following figure shows all factors that the system takes into account when it determines the route in the delivery.

Defining Stages and legs for the routeDetermine which deliveries should be partRoute (all deliveries must have same route)Route can be different in shipment from the accompanying deliveriesShipment planning status of the delivery indicates current processing status of the deliveryAdditional shipment documents can be created for capacity reasons Subsequent Delivery Split in ShipmentSplit a delivery into two or more shipments (may not fit in the same truck). No goods movement has happened for the deliverySplit results and split remainder. May or may not remain in shipment based on before planning or after planning)Split results determine which delivery items are grouped together in the same delivery. All others are split remainders

What is a Shipment ?A Shipment is a group of one or more deliveries originating from the same departure point that represent a truck.It is the record transportation planning, status tracking, and completion.Tendering to the carrier is at the shipment-level.The shipment is used to trigger interfaces through EDI toWMS plants.Shipment completion triggers the BOL.Shipment Cost document is calculated at the shipment-level.6

Shipment DocumentCombine deliveries into one shipmentSpecify shipment stages legs, border crossing, load transferAssign goods to handling units, assign service agent (CFR agents, customs agents)Specify planned transportation deadlines and record actual transportation deadlinesTime required for organizing and planning various transportation activities are storedGenerate 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 transportPacked deliveries can be repacked for shipment in new handling units, e.g. containersTare weight and volume and weight and volume of packed unitOnce a planning status is reached deliveries cannot be added or modified. A traffic light icon signifies the overall status (red for planning complete)Tendering status status of the shipment w.r.t. negotiations with vendorRoute and forwarding agent may be copied from deliveries if same all through and if status is plannedInformation Flow

From EntityInformation TypeTo EntityShipper (Sender)Shipping Order, transportation infoService AgentForwarding AgentAdvanced ShipmentCustomerShipment InformationThe following information is found on the Shipment:Transportation Planning Point (for example AUS or NZ)Shipment Type (FTL, LTL, Returns, STO, No-Freight, etc.)Forwarding Agent (also known as: Carrier or Service Agent)Shipping Type (type of truck, such as single-trailer or double-trailer)DeliveriesShipment Route (determined by the deliveries)Allowed Total Weight (determined by the route)Stages (departure & destination pts of deliveries) Planning DatesPallet CountShipment Status (Planning, Check-In, Shipment Completion)Number of Subsequent Drops8

SAP Shipment document

Shipment cost processingCalculating and settling shipment costsCarried out using condition techniquePricing Procedure determination is based on transportation Planning Point, Service Agent, Shipping Type and Shipment Cost Item (item category)Calculation base can be delivery, delivery item, shipment cost item, handling units, distance, location and tariff zones (postal code area)Pricing and settlement date can be proposed based on deadlinesConditions can be combined into group and the values can be compared to get most favorable. This uses condition exclusion groups and exclusion procedure.Pricing and settlement date types are assigned to shipment cost item categories

10The settlement of shipment costs with the service agents is carried out per shipment cost itemSettlement includes assignment and forwarding of shipment costs to FI and CO for creating accruals and posting payablesAutomatic settlement using self billing or manual settlementThe functions used during settlement are Account AssignmentRelevant G/L account determination for every individual shipment cost itemAssignments for cost accountingRelevant transfer to financial accountingPurchase order is created for the service agent and the service entry sheet createdAfter accepting services accrual entries are createdInvoicingAutomatic using Self Billing or Evaluated Receipt Settlement (ERS)Manual Invoicing

Shipment Cost Settlement

Shipment Cost Document InformationThe following information is found on the Shipment Cost Doc:Reference Document # (e.g.: shipment #)CarrierItem Categories (Transportation Costs, Fuel, Drop, Assessorials)Net Value & CurrencyTaxCondition Types12

Shipment cost document

EDI in transportationExternal transportation planning system or own TPSWarehouse (third party), warehouse (own)Entities involvedVendor (inbound), warehouse, freight forwarder, customerInformation involvedDeliveries (e.g. shipper to warehouse), Shipment Notification (inbound), Shipment notification (outbound), shipment document (e.g warehouse to shipper/freight forwarder), shipment notification (to customer)Idoc typeTPSSHT01 ->creating changing or deleting shipment documents.action code is used for type of action (create/change/delete

SegmentSegment nameShipment headerE2TPSHHAction codeE2TPACCCostsE2TPFRCProcessE2EDT10Means of transportE2TPEQTMeans of transport dimensionsE2TPDISTransportation pointsE2TPSLSLocation identificationE2TPTRMAddressE2TPLOCProcessE2EDT17Leg dataE2TPSHTActionE2TPSHADeliveriesE2TPSHIDelivery costsE2TPDLCRailway dataE2TPSHREDI 214 can be used by a transportation carrier to provide shippers, consignees, and their agents with the status of shipments, dates, times, locations, route, identifying numbers, as well as information concerning shipments in transit.SHPMNT05_>idoc type for creating advanced shipment notification depending on message type SHPADV or SHPMNT (EDI 856)DLVRY03 idoc type with message type SHPCON for shipping confirmation (EDI 945), DLVRY03 with SHPORD for shipping order (EDI 940)

Transportation Master DataMaster data is reference data that is key to the core operation of a business. Transportation Master Data includes the following:

Route Data (departure zone/destination zone combinations): Route Master Route DeterminationConnection Points Route Stages

Conditions (freight rates)

Transportation Zone represents a geographical area (could be a specific postal code, a town or city, a country, etc.). All Plants and Ship-to Customers must be assigned a Transportation Zone.A Route is a link between 2 Transportation Zones.16Instructor notes:

- Routes are defined as Zone-to-Zone.

- Participants would have taken the SAP Navigation course as well as the MtD Overview course where Master Data has already been introduced. Refer briefly to Master data definition in SAP - Explain, if required that there is at least one route per country. The detailed definition and use of routes is a regional decision. Extra lead time and transit time needs to be taken into consideration for export orders. The transportation lead time can also be built into the route. Warehousing lead time is calculated on the basis of the shipping point lead-time. Customer specific exceptions on this is created via the shipping condition of that customer or order.