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Transportation in sap


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SAP Transportation Management in a nutshell

SAP Transportation Management in a nutshell

Published in: Technology
  • good presentation. simple and informative.
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  • very useful document
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  • good presentation. pls post on how to calculate the forwarding agent commission. or provide me an URL or website. i have browsed a lot but in vain. thanks in advance. my email id
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  • can we have some information about SAP FCX
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  • can we see output for for route if so what is the t.code for it
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  • 1. Transportation in SAP
    -Shantanu Dey
  • 2. 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.)
  • 3. 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
  • 4. 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)
  • 5. 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 (shipper’s 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. A traffic light icon signifies the overall status (red for planning complete)
    Tendering status – status of the shipment w.r.t. negotiations with vendor
    Route and forwarding agent may be copied from deliveries if same all through and if status is planned
    Information Flow
  • 6. 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
  • 7. Transportation Planning Process
    Acquire Service Agent
    Organize Means of Transport
    Specifying Route
    Defining Stages and legs for the route
    Determine which deliveries should be part
    Route (all deliveries must have same route)
    Route can be different in shipment from the accompanying deliveries
    Shipment planning status of the delivery indicates current processing status of the delivery
    Not TR relevant, TR relevant not processed, partially processed, completely processed
    Additional shipment documents can be created for capacity reasons
    Edit->Automatic Planning->Shipment Per Delivery
    Moving deliveries to and from delivery is only possible till status is Planned
    Subsequent Delivery Split in Shipment
    Split a delivery into two or more shipments (may not fit in the same truck). No goods movement has happened for the delivery
    Split 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
  • 8. Leg Determination
    Creates legs using simple rules that determine point of departure and destination as well as some leg data (service agent, shipping type, preliminary/subsequent leg, leg indicator, and shipment cost relevance for the leg)
    Leg determination cannot be carried out, for example, if the leg determination type is set to ‘_’ (blank), if there are no deliveries in the shipment, or if the shipping types have not been filled in
    Places (departure points and destinations of deliveries or of a leg, etc.) are given a unique identification number during leg determination; this number is then used in further processing
    The system checks to see if this shipment is part of a transportation chain. This information can be determined from the leg indicator in the shipment header. Leg indicator 4 indicates direct leg – whole shipment appears in one shipment document. Leg indicators 1, 2,3 indicates that shipment is part of a transportation chain
    Border crossing point and load transfer point are inserted between legs
    Automatic assignment of deliveries to the stages
    Deliveries can appear in some stages, not in all (loading/unloading at various stages)
    Point of departure and destination of deliveries is used for this purpose
    Custom leg determination using exit V56SLDET
  • 9. Leg Determination Categories
    Leg determination blank – System does not perform leg determination
    Leg determination 0 – System does not perform leg determination but assignment of deliveries to stages is determined through automatic delivery assignment
    Leg determination 1 – Legs are determined according to itinerary (order of deliveries) in the shipment document, used for collective shipments
    Leg determination 2- Preliminary leg is created for each starting point and 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
    Leg determination 3 – Preliminary leg and a subsequent leg is 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
    Leg determination 4 is similar to leg determination 1 except that shipping types for preliminary and subsequent legs are taken into consideration
  • 10. 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
  • 11. Other Functions
    Packing hierarchy set up in delivery can be continued in shipment document
    Crates and pallets can be put inside containers and loaded onto trucks
    We can use the handling units created in the delivery or create new handling units
    Handling units created in delivery cannot be unpacked in shipment document
    Delivery item can be generated for returnable/to be sold packaging material
    Delivery supplied information to transportation header – routes (if configured as such), service agents (forwarding agents – if all equal)
    Service agents can be copied from header to individual stages
    No automatic text determination in shipment documents
    Texts need to be maintained manually in Text tab at the header level
    Different Statuses -> copy routines can be used to transfer dates from delivery
    Planned ->Shipment’s planning is complete
    Check In – Vehicle arrives in the plant
    Start Load – vehicle is loaded/unloaded
    End load – loading unloading complete
    Shipment Completion – documents are created
    Possible activities on shipment completion
    Goods Issue Posting, Billing, output generation This can be controlled through Activity Profile.
  • 12. Other Functions
    Activity Profiles
    Defines activities that are to be carried out in a shipment document when a certain status is set for shipment
    A certain profile can be defined for each status
    Post goods issue for deliveries in the shipment, calculate shipping costs, print certain outputs, create invoices
    A variant in customizing is maintained per shipment type for the status. Define in this variant the activity to be carried out
    Different reports are available to monitor shipment
    Shipment cost processing
    Calculating and settling shipment costs
    Carried out using condition technique
    Pricing 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 deadlines
    Conditions 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
  • 13. 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.
    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 item
  • 14. 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
    Automatic using Self Billing or Evaluated Receipt Settlement (ERS)
    Manual Invoicing
  • 15. EDI in transportation
    External transportation planning system or own TPS
    Warehouse (third party), warehouse (own)
    Entities involved
    Vendor (inbound), warehouse, freight forwarder, customer
    Information involved
    Deliveries (e.g. shipper to warehouse), Shipment Notification (inbound), Shipment notification (outbound), shipment document (e.g warehouse to shipper/freight forwarder), shipment notification (to customer)
    Config – Set freight planning for forwarding agent ->assign vendor and partner number
    Idoc type
    TPSSHT01 ->creating changing or deleting shipment documents. Action code is used for type of action (create/change/delete)
    E2TPSHH contains header info including TKNUM, CARRID – service agent (vendor), SRVID1 (external identification)
    E1TPSHI – containing deliveries in shipment
    Several customer functions are available to update custom tables or set status in shipment document
    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)
    Tables used
    VTTK – shipment header and VTTP – Shipment Item, VTTS – Stages and VTFA – Shipment document flow
    Parcel Tracking in Delivery and Shipment – Separate Discussion Topic