Transportation Module: Business Consulting Services

Business Consulting Services
Transportation Module
Feb 06
© Copyright IBM Corporation 2005

IBM Business Consulting Services
List of Topics
 Transportation Concepts
 Organization Elements for Transportation Module
 Standard Process with Transportation Module
 Shipment Document
 Shipment Cost Document
 Shipment Cost Settlement with Forwarding Agent
2 | Account Determination in SAP Sales & Distribution Module © Copyright IBM Corporation 2005
List of Topics
Sales Order Processing
Sales & Distribution Document ERP Std Flow Inventory Sourcing
 The employees in your department Customer Service take

orders in writing and over the phone.  In this process step in Sales and Distribution you
Shipping
Sales can:
Inquiry Quotation
 Standard orders normally contain: Outbound Delivery
 check the availability of the ordered goods and
 Customer and material information

Order  publish the demand in materials planning
 Materials planning (MM) organizes and

 Shipping processing supports:
monitors the actual procurement
 Pricing conditions for each item Picking
Quotation
process.
 Creating outbound deliveries Inventory
This includes products that are:
 Delivery dates and quantities  Picking (by creating Check
transport orders)
 inhouse-produced or / and Packing
 externally-produced
 Shipping information  Packing
is a process that is part of the application Post Goods Issue
 Posting the goods issue
 Billing information  SAP AG 1999
Financial Accounting.
supports:
g payments against invoices
 SAP AG 1999
wing differences
Excise
Invoice Invoice
 SAP AG 1999
Payment Excise Invoice Billing
Accounting Accounting
Document Document
Sales & Distribution Document ERP Std Flow

ent Customer Service take
hone. Inventory Sourcing
in: Sales Outbound Billing

on Order  In this process step in Sales and Distribution you
can: Delivery Document Invoice
 check the availability of the ordered goods and
 publish the demand in materials planning
 Materials planning (MM) organizes and

monitors the actual procurement
process.
Inventory
This includes products that are:
 inhouse-produced or / and
Check
7
4 5 6
1 2 3
11 12 13 14
8 9 10 21
18 19 20
15 16 17 25 26 27 28
 externally-produced 22 23 24
29 30 31
 SAP AG 1999
Shipping point
Picking
Packing
Post Goods Issue
Delivering plant
Route
Ship - to party
Shipment Document
Sales Outbound Billing

Order 1 Delivery 1 Document

Shipment Shipment document is created for Forwarding agent who is responsible for
handling the deliveries to customer
Document
The outbound delivery, documents the shipping of the goods. Its created for
Ship to Party.
The outbound delivery is the basis for creating the outbound shipment, that
is, the shipment of the goods from the company's plant to the customer.
Route Defined
1. Route is journey to be covered between

 Departure Point – Shipping Point &
 Destination – Ship to Party
7
4 5 6
1 2 3
11 12 13 14
8 9 10 21
18 19 20
15 16 17 25 26 27 28
22 23 24
29 30 31
Shipping point
Delivering plant
Route
Ship-to party
Route Determination In Sales Order Line item

7
4 5 6
1 2 3
11 12 13 14
8 9 10 21
18 19 20
15 16 17 25 26 27 28
22 23 24
29 30 31
Shipping point
Departure zone Shipping Transportation Transportation Route

Delivering plant Shipping point condition group zone (GR)
Southern
route
Route Express
Hamburg Express On pallets Munich
Ship-to party
Hamburg Standard Fluid Leipzig
Eastern
route
IMG
IMG Sales doc.
... type
Material Ship to
... or Party
...
Sold to party
Shipping Tab
Route Information
Route contains the information, which is important to the shipment
Route Stages
Route is made up of various stages.

 Leg – This has Start & End Point
 Load Transfer Point – Place where shipment is loaded or unloaded from one
means of transport to another
 Border Crossing Point – Location where shipment crosses the border.
Leg
Cologne
Frankfurt
Praha
Prague
Trade
Tradecenter
center Route
Route
Stage
Stage
Nuremberg
Border Border
Load Transfer
Crossing Point
Point
Strasbourg
Straßbourg
Vienna
Munich
Route Stage Information

 Information in route stages (leg, Load Transfer Point & Border Crossing Point is used
as basis for calculating the shipment cost.
 Various stages of the route can have different forwarding agent and thereby different
shipment document
Stage category is nothing

but Stage types
 Transportation
 Load Transfer Pt.
 Border Crossing Pt.
Possible entries here

could be
 Preliminary leg
 Direct Leg
 Subsequent Leg
These are Transportation

Planning Point defined in
customizing
Multiple Leg
Between Transportation Planning Points Route may consists of
 Preliminary leg
 Direct Leg
 Subsequent Leg
Shipment Document in transportation module can be created for each of

these leg.
Leg
Shipment Document Shipment Document

Created for Forwarding Created for Forwarding Shipment Document
Agent 1 for this direct leg Agent 2 for this direct leg Created for Forwarding
Agent 3 for direct leg
Leg
Cologne
Frankfurt
Praha
Prague
Trade
Tradecenter
center Route
Route
Stage
Stage
Nuremberg
Border Border
Load Transfer
Crossing Point
Point
Strasbourg
Straßbourg
Vienna
Munich
Border Crossing Pt / Load Transfer Pt- Shipment Document
Shipment Document can be Shipment Document can

created for handling charges be created for Customs
at Trade Centre forwarding clearing & Forwarding
Agent 4 Charges
Leg
Cologne
Frankfurt
Praha
Prague
Trade
Tradecenter
center Route
Route
Stage
Stage
Nuremberg
Border Border
Load Transfer
Crossing Point
Point
Strasbourg
Straßbourg
Vienna
Munich
Multiple Shipment Document for Same route on different

Route Stages
Shipment Document S1
Delivery D1
Delivering Plant Ship to Party
Hamburg Boston
Hamburg Shipment Document S3 Shipment Document S6

Delivery D1, D2 Delivery D1
Station
Warehouse Ship to Party

Hamburg North Philadelphia
Delivery D2 Rotterdam New York Shipment Document S7
Delivery D2
Delivery D1, D2, D3
Shipment Document S4 Delivery D3
Delivery D3
Delivering plant
Dresden
Ship to Party
Detroit
Delivery D2 is part of various shipment Document for Preliminary leg, Direct leg & subsequent leg
Route Determination
Route Determination
Order
From Where ? How ? What ? To Where
Route
R150 Transportation Zone: Shipping Transportation Transportation Zone :
Shipping Point Condition Group Ship to Party
Delivery
Route Adopt or redetermine Route based upon weight in Delivery

R160
Shipment
No route in the shipment
or:
Route Enter another route forthe shipment
R250 or:
Adopt the route fromthe delivery
Shipment Document


Document
Ship to Party.
List of Topics
Transportation Planning Point
Company code Transportation

planning points
Planning and
processing
shipments
1010 1011 1200

Hamburg Hamburg Dresden
International Rail Truck
shipment by sea shipments shipments
 The transportation planning point is the central point within the company that
plans, processes, and monitors shipments. It can be a location or a group of
people responsible for processing.
Transportation Planning Point
 Each shipment is created and processed by a single transportation planning point.
 Transportation point is assigned to company code, to capture the cost from

Shipment cost document
List of Topics
Transportation Module ERP Std Process Flow


Document handling the deliveries to customer
Ship to Party.


For every Shipment document, Shipment

Shipment Shipment Cost Cost document is created
Document C
Document While creation of Shipment Cost Document it
is automatically linked to Purchase Order.
This Purchase Order could be Daily, Weekly

Purchase or monthly depending upon configuration
Order


Freight Calculation
Account Assignment
Transfer to Accounts
Shipment Shipment Cost
Document C
Document Using ERP std transportation Pricing , one
can calculate Freight or enter freight amount
manually
Purchase G/L Account need to be assigned for Freight

Cost based upon
Order  Valuation Area or
 Business Area


Freight Calculation
Account Assignment
Document C
Document Once you click on Transfer to Accounts,
system creates Service Entry Sheet & link it
to Purchase Order.
Purchase Service Entry

Order Sheet


Transporters Bill then passed to Accounts

can be cleared by performing Invoice
Shipment Shipment Cost verification w.r.t.
 Purchase Order
Document Document  Service Entry Sheet
Purchase Service Entry Invoice

Order Sheet verification
List of Topics
 Standard ERP Process with Transportation Module
Shipment Document


Document
Ship to Party.
Shipment Document Functions
Grouping of inbound or
outbound deliveries in
shipments rt
s po Se
n rv
otfra ice
e ag
d en
Create output Mo t
(EDI / documents )
Record shipment
characteristics
Shipment document
functions
Record planned and

actual dates / status Determine shipment
information stages
A C
Plan Act.
Packing / loading
B
04.06.
12.06.
Shipment Document Structure
Shipment
Shipments and deliveries Service agent TPPt: ShPt Wt/kg
header:
General datafor the
entire shipment
0000001234 Nordspeed 1000 18,5860
0080004903 1200 8,386
0080004879 1000 3,200Items:

Inbound or
0080004905 1000 outbound
7,000
deliveries in the
shipment
Route Determination in Shipment Document
Route Determination
Order
From Where ? How ? What ? To Where
Route
074001 Transportation Zone: Shipping Transportation Transportation Zone :
Shipping Point Condition Group Ship to Party
Delivery
Route Adopt or redetermine Route based upon weight in Delivery

074005
Shipment
No route in the shipment
or:
Route Enter another route forthe shipment
074004 or:
Adopt the route fromthe delivery
Status information in Shipment Header
Processing
status of Status information in the
shipment shipment document header :
Overall status Check -in
Planned 
 Completed
Check - in 
 Completed
Loading start Not completed

Loading end Not completed
Shipment completion Not completed
Shipment start Not completed
Shipment end Not completed
Automation in Shipment Doc based upon Activity Profile
Shipment type : Z001 Coll . shipment by road :
Status: Activity profile :
Plan002
Serviceagent ?
Planned 

Route ?
Check005
Shipment 

completion Driver ?
Identification
Post goods issue

Initiate billing
Shipment Document
ERP Functionality

Example
Shipping Point
1
8
15 16
2 3
9 10
22 23
17 18
4
24 25
5
11 12
19
6
13 14
7
20 21
26 27
28
4000 – Abu Road,
29 30 31
Forwarding Agent Transportation Zone

Shipping point
TA0005 – Transporter Abu Road
2020000000
Delivering Plant Transportation Planning Pt.
4000 – Abu Road, 4000
Delivering plant Rajasthan
Route
Route - 074005
Part Truck Load from
Abu Rd to Faridabad
Ship To Party
Ship - to party
A00001 – Adventec Coils,
Location :- Bahadurgar close to Faridabad
Transportation Zone
0700000001 Faridabad
List of Topics


Freight Calculation
Account Assignment
Document C
Document Using ERP std transportation Pricing , one
can calculate Freight or enter freight amount
manually
Purchase G/L Account need to be assigned for Freight

Cost based upon
Order  Valuation Area or
 Business Area
Requirement for shipment Cost Calculation

Shipment Document
The shipment document must

ShpmntCostsRel
. 
be shipment cost relevant
The shipment document must

have the necessary overall Status
status, (Planned status at the Planned  Completed
very least)
One can create Shipment cots Document if

 Shipment Document is Shipment Cost Relevant
 Shipment document has necessary status which is minimum status for creation of Shipment
Cost Document
Creating Shipment Cost Document
Shipment Shipment cost

document document
1
1
2
2
3
3
1:1
Creating shipment Cost document using collective Processing
Selection criteria
Automatic
creation of
shipment costs
Shipment Shipment cost
Shipment
document Shipment cost
document
Shipment
document
Shipment
document
1 document
1 1 document
1 1
2 1
2 1 2
2 1
3 2
2 3 2
3 2
3 3
3 3
3
1:1
Structure of Shipment Cost Document
Shipment cost document

• Overall status
• Reference data
Header • Administrative data
Item 1 • Item status

• Pricing procedure
• Determined pricing date
Sub - item 1 • Tax data
• Settlement data
• Service procurement
Item 2
Sub - item 1
Result of shipment
cost calculation
Sub - item 2
Structure of Shipment Cost Document
 Shipment cost header

The shipment cost header contains general information on the entire document. Status,
reference, and administrative information is provided. As far as the status information is
concerned, the statuses are cumulated statuses that are derived from the individual
items.
 Shipment cost item

The items contain general data for shipment cost calculation and settlement, such as
service agent, pricing and settlement date, tax amount and tax base amount, and
organizational data such as company code, plant, and purchasing organization. Each
item has its own status for the shipment cost calculation, account assignment and
transfer functions.
 Shipment cost sub-item

Shipment costs are calculated at shipment cost sub-item level. The calculation result is
also recorded at this level
Leg
Shipment Document is created for route Hamburg to Stuttgart which has two stages
 Hamburg – Frankfurt
 Frankfurt – Stuttgart
Both the above stages are Shipment Cost relevant.. Hence both the above stages are copied as two
separate line items in Shipment Cost document
Leg
Hamburg
Cologne
Frankfurt
Praha
Prague
Frankfurt Trade
Tradecenter
center Route
Route
Stage
Stage
Stuttgart
Nuremberg
Border Border
Load Transfer
Crossing Point
Point
Strasbourg
Straßbourg
Vienna
Munich
Items in Shipment Cost Document
Shipment Doc Shipment costs

Header
Insurance 1. Item
ABC Insurance
Stage 1
2. Item
Hamburg - Frankfurt
Nordspeed forwarding Agent
Stage 2 3. Item
Frankfurt - Stuttgart
Schmalenbach forwarding
Agent
Shipment Cost Type & Item Category
Control by
Shipment costs
Number range
Header Shipment cost Doc Type
Overall Shipment Status
Item
Sub - Item
Control by
Shipment costs
Number range
Header Shipment cost Doc Type
Overall Shipment Status
Item Item category Parameters for Cost Calculation

Parameters for Cost Settlement
Relevant for settlement
Sub - Item Generate Purchase Order
Assignment for Controlling
• Order
Account
Account Assignment
assignment • Cost center
e.g.
category
Category • Project
•• Shipment
Sh Shipmentcost item
cost item
for
Cost distribution each
Lie DeliveryLieDelivery item
• Delivery
• Delivery Item
• G/Laccount
Origin ofof
Origin CO from • Delivery , Order
assignments
assignments
• Delivery , Order , G/L Account
Assignment for Controlling

To post to objects in Controlling, the system must first determine the correct objects. The
system automatically determines these objects in Controlling. The following parameters
are important:
Account assignment category:

The account assignment category determines which object is to be posted to (for
example, cost center or order) and which account assignment data is required.
Cost distribution:
Cost distribution determines the level at which costs are to be transferred, depending on
how detailed you want to track costs. Possible distributions are by shipment cost item,
by delivery, or by delivery item.
Origin of CO assignments:
This parameter defines the origin of the information that is used for determining the CO
object.
Cost Types
Cost types
Reference to
Shipmentheader
Shipment header A
Shipment costs
Shipment
legLeg
Shipment B
Item
Loadtransfer
Load transferpoint
point C
Border
Bordercrossing
crossing D
point
Point
Item Category Determination

Customizing
Shipment cost type 0001

Shipment costs
Cost type Item Category
Item Item. cat
B Leg Transportation costs 0001 auto 1 0001
A Header General Cost 0002 auto 2 0002
A Header Insurance 0003 manual 3 0003

Control by
Shipment costs
Header
Item
Sub - Item Calculation Base
Calculation Base
Item 01 - Hamburg - Frankfurt

Forwarding agent : Nordspeed
Shipment cost item
Handling unit Net value

135, -
Delivery
Delivery item
Sub -item Document Item Net value
1 80001000 10 763, -
2 80001010 10 763, -
3 80001010 20 236, -
Calculation Base
 The calculation base determines the origin of the data that is used during
pricing as a basis for the condition type.
 The condition type controls which calculation base is used for calculation.
 Note: ERP recommends that you select a calculation base that is only as
detailed as necessary - for reasons of system load and clarity.
Examples of Calculation Base

Shipment cost item Weight
20 t Leg & Weight
Leg
Handling units
Price per wire basket Handling Unit
e.g. Basket
Delivery
Delivery
Deliveries Delivery
Delivery
Prices depending on ship
- to party
e.g. Ship To Party
Delivery
Delivery
Delivery items 1 1 Computer Freight class 01
2 Hard Drive Delivery Item
3 Cables
2 Freight class 02
Considering the Freight Class e.g. Weight of item
Freight Classes
Assignment of Purchasing data for Shipment Cost Doc
Shipment Cost
Document Type Purchasing
organization
Plant
Transportation Shipment cost Purchasing Purchasing

Type Plant
Planning Point Organization Group
4000 Z001 9002 P01 4000
Click here

Shipment Cost Document
ERP Functionality



Freight Calculation
Account Assignment
Document C
Document Once you click on Transfer to Accounts,
system creates Service Entry Sheet & link it
to Purchase Order.
Purchase Service Entry

Order Sheet
Shipment Cost Settlement
Shipment costs
Item
Financial Accounting Requirements
Transfer Accruals in FI
Assignment in CO A B Entry / Acceptance of
XX XX services performed
Cost center 100000
Transfer to Financial Accounting
Purchasing
Purchase Reference Service Entry Transfer

order Sheet
1 to to
Financial
Accounting
Service
Acceptance
Accruals
Service agent
A B
Purchasing organization
Purchasing group XX XX
Plant
Item category
A = Outward Freight A/C

B = GR / IR Clearing Account
Accounting Entries
Service Entry Sheet

Dr. Cr.
Outward Freight 1000
GR /IR Clearing Account 1000
List of Topics
Shipment Cost Settlement
Shipment costs
Item
Financial Accounting Requirements
Transfer Accruals in FI
Assignment in CO A B Entry / Acceptance of
XX XX services performed
Cost center 100000
Settlement with
service agent
Accruals become payables Invoice /
B 1058 credit memo
XX XX
Invoice Verification
Invoice
1
Financial
Financial
Service agent
Service agent
Accounting
Accounting
2
Payables
?
Invoice verification B 1058
XX XX
1058 = Recon Account for Vendor
B = GR / IR Clearing Account
Accounting Entries
Service Entry Sheet

Dr. Cr.
Outward Freight 1000
Dr. Cr.

1000
Vendor
ERP Functionality

The End…..

Transportation Module: Business Consulting Services

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Business Consulting Services

© Copyright IBM Corporation 2005

Sales Order Processing

Sales & Distribution Document ERP Std Flow Inventory Sourcing

 The employees in your department Customer Service take

 Customer and material information

 Materials planning (MM) organizes and

Payment Excise Invoice Billing

Sales & Distribution Document ERP Std Flow

in: Sales Outbound Billing

 publish the demand in materials planning

 Materials planning (MM) organizes and

Sales Outbound Billing

Sales Outbound Billing

1. Route is journey to be covered between

Route Determination In Sales Order Line item

Departure zone Shipping Transportation Transportation Route

Route contains the information, which is important to the shipment

Route is made up of various stages.

Route Stage Information

Stage category is nothing

Possible entries here

These are Transportation

Between Transportation Planning Points Route may consists of

Shipment Document in transportation module can be created for each of

Shipment Document Shipment Document

Border Crossing Pt / Load Transfer Pt- Shipment Document

Shipment Document can be Shipment Document can

Multiple Shipment Document for Same route on different

Hamburg Shipment Document S3 Shipment Document S6

Warehouse Ship to Party

Route Adopt or redetermine Route based upon weight in Delivery

Sales Outbound Billing

Sales Outbound Billing

Transportation Planning Point

Company code Transportation

1010 1011 1200

Transportation Planning Point

 Each shipment is created and processed by a single transportation planning point.

 Transportation point is assigned to company code, to capture the cost from

Transportation Module ERP Std Process Flow

Sales Outbound Billing

Sales Outbound Billing

Transportation Module ERP Std Process Flow

Sales Outbound Billing

Sales Outbound Billing

For every Shipment document, Shipment

This Purchase Order could be Daily, Weekly

Transportation Module ERP Std Process Flow

Sales Outbound Billing

Sales Outbound Billing

Purchase G/L Account need to be assigned for Freight

Transportation Module ERP Std Process Flow

Sales Outbound Billing

Sales Outbound Billing

Purchase Service Entry

Transportation Module ERP Std Process Flow

Sales Outbound Billing

Sales Outbound Billing

Transporters Bill then passed to Accounts

Purchase Service Entry Invoice

Sales Outbound Billing

Sales Outbound Billing