LE-TRA Overview

Logistics Execution

The Logistics Execution (LE) component models the logistics processes in a company. It
covers the entire process chain from the vendor through the company warehouse,
production facilities, and distribution centers to the customer.

The LE processes include:

The goods receipt process: Goods pickup from the vendor and put away in the
company's warehouse.

The goods issue process: Picking the goods and delivering them to the customer.

Internal warehouse processes such as posting change, stock transfer, and inventory.

The shipment process: Inbound and outbound shipments, and shipment cost calculation
and settlement.
 Transportation

A shipment represents a physical goods movement between two or more locations. [in
Business]

Transportation is a essential element in Logistic chain

Affects both incoming and outgoing goods

Transportation costs also play an essential role in calculation in price of a product, thus
necessary to keep transportation costs low

Transportation is carried out through Shipment Documents [in SAP]

Organizational structure - Shipping
 Transportation planning point

Company code
Company code

Plant
Plant Transportationplanning
Transportation planningpoint
point

Storage
Storage location
location Shipping
Shippingpoint
point

Warehouse
Warehousenumber
number Loading point
Loading point
 Transportation planning point

A group of employees responsible for organizing transportation activities - what

to ship, when to ship, how to ship, where to ship
Each shipment has to be assigned to a specific transportation planning point for
carrying out the transportation planning

What to Ship???

How to Ship???
Shipping Document
with all the details

Where to Ship???

When to Ship???
 Transportation planning point

We can have Transportation Planning Point according to our companys needs, for
example,
- according to geographical location or
- mode of transport.

Road

How many
Transportation
planning point
should I have??
Sea

United
States
Department
of
Transportation
 Transportation planning point

Transportation planning point is created in transaction OVXT or menu path: IMG Enterprise
Structure Definition Logistic Execution Maintain Transportation Planning point
Assign Transportation point to a company code
This assignment is relevant for shipment costing and settlement only.
Shipping point determination
 Route

Route is a fundamental basis to create and plan shipments in SAP

Route is Pathway from goods/ services departure point to its destination point
The route determines the itinerary and the means of transport in shipping
It also carries very essential information such as Vandor, transportation relevance, Transit
time etc
System determines Route in a sales document which can be copied to Delivery document
and further in a Shipment document.
Route determination
 Route controls

When route is determined, lot of information is determined for the shipment document
Route maintenance and route determination maintenance is carried out under path: IMG>
Logistic Execution> Transportation> Basic Transport functions> Routes
Outbound delivery and shipment
Transportation and Transportation cost
Shipment - Terms to understand

Transportation connection point

Stages
Legs
Routes

The information contained in this document is proprietary. Copyright 2014 Capgemini. All rights reserved. 21 1
 Transportation connection point

A connection point can be one of the following:

an airport or a harbor
a border crossing
a railway station
a load transfer point

Jamshedpur Dresden
JNPT Rotterdam
Factory Truck
Navi Mumbai Sea Sea port Rail DE
Shipping Sea port NL factory
point Customer

Transportation Connection point

 Stages

Stages contain information about geographical factors for a shipment

Can be a Load transfer point, Border Crossing point or Legs
Load transfer points: The point where a shipment is unloaded from one means of transport
and loaded onto another.
Border crossing points: The point where a shipment crosses the border.
Leg: A beginning point and end point is defined

Legs
 Shipment Legs

Shipment leg is formed with connection between beginning point and end point.
The following can be beginning points or end points:
Transportation connection point (train station or port, for example)
Shipping point (or loading point)
Plant (or storage location)
Customer location (may include customers unloading point)
Vendor loading point
Freely-definable address
 Stages Legs Types of Legs

Preliminary leg (if legs departure point = Delivery Departure point)

Subsequent leg (if legs destination point = Delivery Destination point)
Main leg (if leg has both departure point and destination point)
Direct leg (if the leg links the delivery departure point directly to the delivery
destination; and there are no more items to deliver)
Return leg (if the leg links the delivery destination to the depot - where it has
started from)

Load Transfer Points Load Transfer Points

Jamshedpur Dresden
JNPT Rotterdam
Factory Factory
Truck Sea Sea Port Rail
Shipping point Navi Mumbai location
Netherlands
Germany

Preliminary Leg Main Leg Sub sequent Leg

 Types of Shipment

Based on the different forms of transportation, the shipments can be categorized

as below

Individual shipment
Collective shipment
Multimodal transport/ Transportation chain
 Individual Shipment

Individual shipment: (Shipment type 0001 provided by SAP)

An individual shipment includes-

One or more deliveries

One point of departure

One destination
One mode of transport
 Collective Shipment

Collective shipment: (Shipment type 0002 provided by SAP)

A collective (or milk-run) shipment includes

One or more deliveries

Several points of departure

Several destinations

One mode of transport

Delivery 2 (to
WalMart)
Delivery 2

Delivery 1 Delivery 1
Delivery 2
(to K Mart)
Main Leg Subsequent Leg
 Transportation Chain

Transportation chain/ Multi-modal transport: (Shipment type 0004,0005,0006 provided

by SAP)

A transportation chain is useful if you are dealing with deliveries that will be
transported using multiple modes of transportation (and are thus processed by
different departments at the transportation planning point).

One or more deliveries

Several points of departure

Several points of destination

More than one modes of transport

 Business Scenario - Transportation Chain

Customer -
Berlin

Shipment Shipment Shipment

Document 1 Document 2 Document 3
Business Scenario - Transportation Chain

Customer -
Berlin

Shipment
Document 1
Business Scenario - Transportation Chain- Challenges Ahead

If you want to depict a transportation chain within a single shipment document, you must also
accept the limited functions available to you.

Reason: Almost all shipment document functions refer to the document as a whole:
Outputs can only be printed for the entire document, not for individual legs
Shipping units (Pallets, Container, etc) can only be created for the entire document, not for
individual legs
The same is valid for texts, deadlines in general, etc.
 Determination of Legs

1: Leg determination according to ITINERARY (as per the order of deliveries in the
shipment document)

DeliveryShipping Point
Customer's Destination
1 Cincinnati Denver

2 Cincinnati Dallas
3 New York Harrisburg

Delivery 1 Delivery Delivery 2

and 2 1,2 and 3 and 3 Delivery 3

Truck New York Truck Denver Truck Dallas Truck Harrisb

Cincinnati urg

Preliminary Leg Main Leg Subsequent Leg Subsequent Leg

 Determination of Legs

2: A type of leg determination in which a preliminary leg is created for each starting
point and a subsequent leg is created for each destination point.

This type of leg determination is used for transporting deliveries that are to be sent by
sea in a group, but originate from different shipping points or are to be transported to
different ship-to parties.

Shipping Customer's
Delivery 2 Delivery Point Destination
1 New York Berlin Delivery 2
Washing 2 Washington Dresden
ton 3 New York Berlin Dresden

Delivery 1 Delivery Delivery Delivery

Delivery 1
and 3 1,2 and 3 1,2 and 3 1,2 and 3
and 3

Preliminary Leg Main Leg Subsequent Leg Subsequent Leg

 Determination of Legs

3: A type of leg determination in which a preliminary leg and a subsequent leg are
created for each delivery. This leg determination type is used for transporting
extensive amounts of goods that must be distributed among multiple deliveries
because one delivery would not offer enough capacity.

Shipping Customer's
DeliveryPoint Destination
Delivery 2 1 New York Dresden
Delivery 1
2 New York Berlin
Washingt
on Dresden

Delivery 1 Delivery 1 Delivery Delivery 2

Delivery 1 and 2 and 2 1,2

Preliminary Leg Main Leg Subsequent Leg Subsequent Leg

 Determination of Legs

4: Same as 1; but shipping type for Preliminary and subsequent legs are changeable
in the shipment document

0: Only determine assignment of deliveries to the stages For documents in which

such a complex situation exists that it is necessary to generate the legs manually. To
reduce the maintenance effort, you can at least determine the assignment of delivery
notes to stages.

Blank: No leg determination For documents in which legs are not relevant (Ex:
Empty shipments)

LE-TRA Training | 09.10-09-2015, Mumbai

The information contained in this document is proprietary. Copyright 2014 Capgemini. All rights reserved. 38
 Determination of Legs - Manual Changes

We can manually add the stages with the stages which are determined automatically
We can specify the different Mode of transport, service provider details, Inco terms for
the stages newly entered
 Transportation relevance - Control

For carrying out transportation following should be relevant for transportation

- Delivery type
- Delivery item category
- Route
This is done under menu path: IMG> Logistic Execution> Transportation>
Shipments> Maintain Transportation relevance
 Controlling shipments: IMG Shipment Document Type

Completion type
Process control
Service level
Leg indicator
Shipping type
Leg determination type
Copying data
Output determination
Text determination
Default Values

Menu Path: IMG> Logistic Execution> Transportation> Shipments> Define Shipment ty

 Shipment document - structure

The shipment document header contains data that applies to the whole document such as
shipment type, transportation planning point, route, deadlines, and status information.
The shipment document item contains inbound or outbound deliveries in inbound or
outbound shipment respectively
 Identifying the status of the shipment

Red - Planning is completed. Shipment status planned

Yellow - Activities in Plant. Loading start & end
Green - Processing/Shipment is completed
 Identifying the status of the shipment

A shipment can have various statuses which uniquely

identifies what activity still needs to be done, and what
activity has been completed
Planned Shipments Planning is complete
Check - in Vehicle arrives at the Plant
Start Load Loading goods into the Vehicle begins
End Load Goods are fully loaded into Vehicle
Shipment Completion Necessary documents are created
(like Bill of Lading, material safety data sheets) and will be
issued to the respective persons
 Creating Shipment documents

Manual Creation
Manual creation using planning proposal (use of planning profile)
Automatic creation using collective processing - online & background
Interfaced to an external transportation planning system (ex: SAP APO, LEO - an ORTEC
product)
Transactions used for creating shipments are
- VT01N - Single Document
- VT04 - Collective Processing
- VT07 - Collective Processing in Background
 Planning profile

To create shipments and fill with default data (used during collective processing)
Program: RV56TRGN (all the profiles are variants of this program)

RV56TRSP

RV56TRTR
 Activity Profile

For each status completion, we can decide an Activity profile

Activity profile determines the activities carried out when a specific status is set
for the shipment document
Activity profile is accessed and maintained under menu path: IMG> Logistics
Execution> Transportation> Shipments> Define and assign activities profile
Program: RV56ABST (all the activities are variants of this program)
Activity Profile
 Standard Reports available in SAP

Utilization report - VT14- displays shipments that are not utilized to full capacity

Transport Execution Monitor - VT20 - helps the transportation planner can react
quickly to situations and also have a complete overview of the overall status of all
planned shipments.
 Salient Features in SAP

Will be able to select deliveries with specific criteria to attach in a shipment (screen info for
delivery selection)
Shall capture the Tender Status (Rejected by Forwarding Agent, Accepted by FA with
conditions, Offer Cancelled, etc)
Delivery may be split up into two or more shipments if they do not fit on to one truck
Will be able to update Forwarding agent/ transportation planning department with a maximum
price which you can offer for a shipment while tendering
Will be able to see the estimated costs for a shipment once it is fully planned
Will be able to quickly adjust the transportation plan by changing the mode of transport, the
LSP, and even the route if necessary
Will be able to keep track of changes made in the shipment document
Will be able to copy the details (like Forwarding Agent, Route, Shipping type, Deadlines) from
delivery into Shipment document automatically
Will be able to maintain translation according to the business needs for Routes, Connection
points, Stages, etc
Shipment processing - Summary
Shipment Costing

Why should I pay???

What it is?? -
Shipment Costing - Prerequisites

Have my shipment has a service

Have my shipment agent???
has a service
agent???

Have my shipment attained the

minimum
Have my status???
shipment attained the
minimum status???

Is my shipment relevant for

Is myshipment
shipmentcosting???
relevant for
shipment costing???
Shipment Costing - steps involved
Shipment Cost document structure
 Shipment cost document - Structure

Shipment cost items either refer to a shipment header or shipment stages

An shipment cost item can refer to Shipment header as insurance charges are
for complete shipment
An item can refer to shipment stages as load transfer charges could be
charged to each Load transfer point (Stage)
These functions are controlled through shipment cost item category.

Shipment Shipment cost Item

Header
Header
Shipment
ShipmentShipment cost Item 2
Stage
Stage
1 1
Shipment
Shipment Shipment cost Item 2
Stage
Stage
2 2
 Factors deciding shipment costs

Factors which decide Shipment Costing

Transportation planning point
Service agents - Service agent group (attached to vendor master)
Truck, Ship, Plane - Shipping type procedure group [T_72]
Leg, Border Crossing point, Customs - Item determination group [T_71]
Menu: SPRO - LE - Transportation - Shipment Costs - Pricing - Pricing Control - Define And Assign
Pricing Procedures
 Shipment Costing - Pricing - Calculation Base

Some of the factors which can act as a Calculation Base to carry out Pricing
Geographical information (Point of departure and destination - Legs) and the
distance to be travelled and the Weight loaded
Handling Units (Carton packaging, Pallets)
Delivery (To whom we deliver the goods)
Delivery Items
 Settling Shipment cost - How can we do in SAP???

The settlement of shipment costs with the service agent is carried out per shipment
cost item.
This Settlement includes two major activities
Assignment and forwarding of the shipment costs to FI and cost accounting for
creation of accruals and posting of payables
Automatic settlement using the self-billing procedure or manual settlement with the
transportation service agent
Shipment cost settlement
 Shipment cost settlement - account determination

G/L account Determination for Inventory Posting with GBB Transaction and
VBR General Modifier Key (T Code: OBYC)

G/L account Determination with WRX Transaction

 Shipment cost settlement - Determining PO
Factors which need to consider for settling shipment costs
Plant, Purchasing organization, Purchasing group
Service agents
Transportation planning point

Integration: MM should have created a purchase order with the vendor

Pre-requisite:
Service agents [from Shipment item]
Purchasing organization [from item detail: Service procurement]
Purchasing group [from item detail: Service procurement]
Plant [from item detail: Service procurement]
Item category [Service - D]
 Freight Cost Estimate - A feature in SAP

Helps transportation planner to simulate Shipment Costs during Shipment

Processing
The planner can change shipment data such as the forwarding agent, shipping
conditions, mode of transport, and can calculate his shipment costs on the basis of
this data.
Billing Shipment costs to the customer in SAP - Feature in SAP

- The shipment costs that are billed to the customer are based on the actual shipment costs.
- The shipment costs appear as an additional entry in the customer billing document.
Billing Shipment costs to the customer in SAP - Feature in SAP

Delivery to billing copy control: VTFL (keep price source as F - Shipment costs)
Ensure the shipment condition type exists in SD Pricing procedure
Map the LE condition type to SD condition type in T_VC (in case of custom conditions)
Map the condition tables if we have access sequence assigned to the condition type
Simulate Shipment costs at the order level - Feature in SAP

- for example, to determine whether transport by lorry or by train would be cheaper

or how much more it would cost to send by express delivery rather than by
standard transport.
Thank You