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India SAP CoE, Slide 1
SD2004 - SD Shipment Costs v 1.0
India SAP CoE, Slide 2
Shipment Costs…?
A shipment can have costs which represent the charges
of the Transportation Service Provider (TSP, carrier),
possible handling charges, surcharges such as fuel, and
other accessorial or direct transportation costs.
The Shipment Costs are calculated for any given
shipment
India SAP CoE, Slide 3
SD Shipment Costs
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
India SAP CoE, Slide 4
1 PrepareMe
2 TellMe
3 ShowMe
4 LetMe
5 HelpMe
SD Shipment Costs
India SAP CoE, Slide 5
Shipping fees are based upon the cost of processing and
shipping the Customer order
This includes the cost of labor, supplies, facilities and equipment
necessary to fulfill your order
It becomes necessary that all these costs, including the Freights
and other Surcharges are -
 Settled to the Transporter
 Charged to the customer
Purpose
India SAP CoE, Slide 6
Shipment cost functionality is used primarily for the following;
 Calculating shipment costs
 Settling shipment costs to the Transporter
 Charging the Shipment Costs to the Customer
Using this functionality, it becomes possible for the transportation
planner to estimate the Freight cost before they are incurred. This
helps in making important decisions in transportation planning.
Use
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shipment cost.pdf

  • 1. India SAP CoE, Slide 1 SD2004 - SD Shipment Costs v 1.0
  • 2. India SAP CoE, Slide 2 Shipment Costs…? A shipment can have costs which represent the charges of the Transportation Service Provider (TSP, carrier), possible handling charges, surcharges such as fuel, and other accessorial or direct transportation costs. The Shipment Costs are calculated for any given shipment
  • 3. India SAP CoE, Slide 3 SD Shipment Costs 1 PrepareMe 2 TellMe 3 ShowMe 4 LetMe 5 HelpMe
  • 4. India SAP CoE, Slide 4 1 PrepareMe 2 TellMe 3 ShowMe 4 LetMe 5 HelpMe SD Shipment Costs
  • 5. India SAP CoE, Slide 5 Shipping fees are based upon the cost of processing and shipping the Customer order This includes the cost of labor, supplies, facilities and equipment necessary to fulfill your order It becomes necessary that all these costs, including the Freights and other Surcharges are -  Settled to the Transporter  Charged to the customer Purpose
  • 6. India SAP CoE, Slide 6 Shipment cost functionality is used primarily for the following;  Calculating shipment costs  Settling shipment costs to the Transporter  Charging the Shipment Costs to the Customer Using this functionality, it becomes possible for the transportation planner to estimate the Freight cost before they are incurred. This helps in making important decisions in transportation planning. Use
  • 7. India SAP CoE, Slide 7  How to calculate shipment costs for a specific shipment  How to split shipment costs if there is more than one customer for a shipment  How to settle the shipment costs with transport service provider  How to charge shipment costs to a customer  Internal settlement of shipment costs between group companies.. is it possible ? Challenges
  • 8. India SAP CoE, Slide 8 1 PrepareMe 2 TellMe 3 ShowMe 4 LetMe 5 HelpMe SD Shipment Costs
  • 9. India SAP CoE, Slide 9 The Activities in Shipment Cost Processing can be broadly broken down in the following headers: Shipment Cost Document Creation Transmission of Shipment Costs to Accounting Settlement of Shipment Cost with Service Provider Billing The Shipment costs to the customer. Process Steps
  • 10. India SAP CoE, Slide 10 Sales Order Creation Delivery and Shipment Completion Shipment Cost Document Creation. Service Entry Sheet Created. Logistics Invoice Verification Settlement Billing Document Creation Process Flow
  • 11. India SAP CoE, Slide 11 Structure: Shipment cost header: The shipment cost header contains general information on the entire document. You can view status, reference and administration information. The status information is the cumulative status that is calculated from the individual item Shipment cost item: The items refer either to a shipment header or a shipment stage. The items contain general data for shipment costing and settlement, such as service agent, pricing date and settlement date, tax amount and tax basis as well as organizational data such as company code, plant and purchasing organization There is an individual status at item level for each of the shipment costing, account assignment and forwarding to FI functions. Shipment Cost Document
  • 12. India SAP CoE, Slide 12 Shipment cost sub-items: Calculation of the shipment costs is carried out at the level of the shipment cost sub-items and this is also the level at which the result of the calculation is stored. Depending upon the calculation basis that was determined, this can involve single delivery items, deliveries, shipping units or the entire shipment cost item. Different information is received depending on the type of sub-item involved. The delivery item, for example, has no information on the handling units. Shipment Cost Document (continued)
  • 13. India SAP CoE, Slide 13 In Addition to Standard Pricing, The following functions are possible during Shipment Cost Calculation  Pricing procedure determination : This is Done Differently as compared to Standard Pricing  Determination of calculation basis : It is Possible to Set the Base Upon which  Freight cost determination/Shipment cost simulation  Shipment comparisons  Determination of geographical factors  Pricing date and settlement date determination  Tax determination Shipment Cost Calculation
  • 14. India SAP CoE, Slide 14 If the shipment is marked as relevant for shipment costing and when the shipment attains the requisite status , the system determines the appropriate shipment cost pricing procedure based on the transportation planning point,shipment cost item category,shipping type and the forwarding agent. The pricing procedure contains all condition types that are to be used for shipment costing and it defines the sequence in which calculation is carried out in the shipment document. Pricing Procedure Determination
  • 15. India SAP CoE, Slide 15 This function includes: • Calculation and display of shipment costs • Display of shipment cost document • Display of processing log • Calculation of maximum price that should not be exceeded by the forwarding agent(termed as Transportation tendering) Using this functionality, it is possible to execute a Freight cost Estimate during Shipment Processing. It gives an Idea regarding what shipment costs might be incurred by the Shipment. Using this, the transportation Planner can change data such as forwarding agent, mode of transport, shipping conditions etc, and calculate the shipment costs till it falls under the allowed expenditure limit. Freight Cost Estimate
  • 16. India SAP CoE, Slide 16 Depending on the calculation base defined in each condition type of the pricing procedure , the shipment Cost sub-items are determined. Eg: If calculation basis is delivery , the system creates shipment cost sub items for all the delivery headers(i.e no delivery item or handling unit related information) is considered. The other calculation bases are : • Delivery item • Handling unit • Shipment cost item • All (i.e if you want to consider the deliveries as well as the handling units as base for calculation. ) • Handling units including delivery item Calculation Base Determination
  • 17. India SAP CoE, Slide 17 If it’s required to compare two different shipment costs after calculation and then determine the most/least favourable of the two , the condition exclusion functionality of SAP can be used. The system will automatically dectivate the condition type which is not required (Depending on the customising settings and from results of comparison) Shipment Comparisons
  • 18. India SAP CoE, Slide 18 Geographical factors like distance and location or tariff zone influence the shipment costs including taxes. The distance can be used as a scale for calculating the shipment cost. It can either be automatically determined using scale basis or from the routes of the shipment header or the stages, or can be manually entered in the shipment. The tariff zone can be automatically determined based on the postal code area of a country.Besides it’s possible to maintain the condition records based on adress data such as postal code, transportation zone, country, region etc. Determination Of Geographical Factors
  • 19. India SAP CoE, Slide 19 The pricing date and the settlement date can be customized to be determined automatically Date rules can be defined in customising indicating the possible dates that can be proposed automatically during the shipment cost document processing (depending on the shipment cost item category) The pricing and settlement date can be maintained manually in the shipment cost document header. Date Determination
  • 20. India SAP CoE, Slide 20 Inorder to determine the taxes during shipment cost determination, the system determines the destination and departure countries based on the following rules: Departure country:  The system checks if the departure country of all the deliveries in the shipment is the same, if yes, then it uses that as the departure tax country.  Else if the shipment cost item refers to the shipment header,then the departure country from the first shipment leg is used as the departure tax country else if shipment cost item refers to the shipment stage(i.e. either a shipment leg or a load transfer point or border crossing point), then the departure country of that stage is used as the tax departure country. Tax Determination
  • 21. India SAP CoE, Slide 21 Destination country:  The system checks if the destination country of all the deliveries in the shipment is the same, if yes, then it uses that as the destination tax country  Else if the shipment cost item refers to the shipment header,then the receiving country of the last shipment leg is used as the destination tax country else if shipment cost item refers to a shipment leg, then the receiving country of that leg is used as the tax country but if the shipment cost item refers to the load transfer point or border crossing point then the receiving country of the shipment stage is used as the destination tax country Tax Determination (continued)
  • 22. India SAP CoE, Slide 22 1 PrepareMe 2 TellMe 3 ShowMe 4 LetMe 5 HelpMe SD Shipment Costs
  • 23. India SAP CoE, Slide 23  The shipment type for which the shipment costs need to be calculated should be marked as relevant for shipment costing.  The appropriate shipment cost type should be assigned to the shipment type.  The shipment cost type contains control elements that allow different processing options for shipment cost documents. These control elements include the overall status that the shipment must have before the shipment cost document can be created. Prerequisites
  • 24. India SAP CoE, Slide 24 1. Define Date Rules 2. Define Item Category 3. Define Shipment Cost Type 4. Assign Shipment Cost Document Type to Item Categories 5. Assign Shipment Cost Type to Shipment Type 6. Define Shipment Cost Relevance for Shipment Types 7. Set up Pricing for Shipment Cost Calculation. 8. Assign Purchasing Data 9. Set up Automatic G/L Account Determination Configuration Steps
  • 25. India SAP CoE, Slide 25 Date rules determine which dates are chosen for determining the pricing date and the settlement date and the sequence in which they are accessed. Create a Date Rule here By specifying an Alphanumeric Key Define the Dates for the Date Rule, in the required Sequence IMG Path : Logistics Execution > Transportation > Shipment Costs > Basic Functions > Define Date Rules Define Date Rules
  • 26. India SAP CoE, Slide 26 The Item Category Governs various control aspects of the Costing Line Item IMG Path : Logistics Execution > Transportation > Shipment Costs > Shipment Cost Document > Shipment Cost Types and Item Categories Date Rule For Pricing Date Determination Date Rule For Settlement Date Determination Define Item Category
  • 27. India SAP CoE, Slide 27 IMG Path : Logistics Execution > Transportation > Shipment Costs > Shipment Cost Document > Shipment Cost Types and Item Categories The Status the shipment Must attain to enable shipment cost document creation is defined here Define Shipment Cost Type
  • 28. India SAP CoE, Slide 28 Defines which Item categories can be used in a particular Cost Type IMG Path : Logistics Execution > Transportation > Shipment Costs > Shipment Cost Document > Shipment Cost Types and Item Categories Assign Shipment Cost Types and Item Categories
  • 29. India SAP CoE, Slide 29 Defines the Cost Types that can be created against particular Shipment Types IMG Path : Logistics Execution > Transportation > Shipment Costs > Shipment Cost Document >Shipment Cost Relevance and Default for Shipment Cost Type Assign Shipment Cost Type to Shipment Type
  • 30. India SAP CoE, Slide 30 Defines if the Particular Cost type is Relevant for Shipment Costing IMG Path : Logistics Execution > Transportation > Shipment Costs > Shipment Cost Document >Shipment Cost Relevance and Default for Shipment Cost Type Define Shipment Cost Relevance for Shipment Types
  • 31. India SAP CoE, Slide 31 Pricing for Shipment Cost calculation Pricing Configuration Includes the following Steps 1. Define Condition table ( Similar to Standard Pricing ) 2. Define Access Sequence ( Similar to Standard Pricing ) 3. Define Condition Type ( Similar to Standard Pricing ) 4. Define Pricing Procedure ( Similar to Standard Pricing ) 5. Assign Pricing procedure ( This is different from Standard Pricing. The different steps of Pricing Procedure Assignment have been Illustrated in the following Slides ) Set Up Pricing
  • 32. India SAP CoE, Slide 32 Shipment Pricing Procedure IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing > Pricing Control > Define And Assign Pricing Procedures > Define Pricing Procedure
  • 33. India SAP CoE, Slide 33 Define Shipping Type Procedure Group Assign Shipping Type Procedure Group To Shipping Type IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing > Pricing Control > Define And Assign Pricing Procedures > Define and assign shipping type procedure group Pricing Procedure Determination
  • 34. India SAP CoE, Slide 34 Define Item Procedure Group Assign Item Procedure Group To Item Category IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing > Pricing Control > Define And Assign Pricing Procedures > Define and assign item procedure group Pricing Procedure Determination
  • 35. India SAP CoE, Slide 35 Define Service Agent Procedure Group IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing > Pricing Control > Define And Assign Pricing Procedures > Define service agent procedure group Pricing Procedure Determination
  • 36. India SAP CoE, Slide 36 Assign Service Agent Procedure Group to Service Agent ( Control Data ) Transaction Code : XK01 ( Create Vendor ) / XK02 ( Change Vendor ) Enter Service Agent procedure Group Pricing Procedure Determination
  • 37. India SAP CoE, Slide 37 For Each transportation Planning Point, Pricing Procedure is assigned against the combination of • Shipping Procedure Group • Item Procedure Group • Service Agent Procedure Group IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing > Pricing Control > Define And Assign Pricing Procedures > Define service agent procedure group Pricing Procedure Determination
  • 38. India SAP CoE, Slide 38 Assign Purchasing Data : Each Pair of Transportation Planning Point is assigned to a combination of • Purchasing Organization • Purchasing Group • Plant IMG Path : Logistics Execution > Transportation > Shipment Costs > Settlement > Assign Purchasing Data Settlement
  • 39. India SAP CoE, Slide 39 This is done to ensure Posting of the Shipment cost to correct G/L Accounts. IMG Path : Logistics Execution > Transportation > Shipment Costs > Settlement > Automatic G/L Account Determination G/L Account Determination
  • 40. India SAP CoE, Slide 40 Shipment Cost Processing Master Data
  • 41. India SAP CoE, Slide 41 1. Enter Condition Type 2. Choose Key Combination ( If Access sequence contains multiple tables ) Condition Record Creation 3. Create Condition Record and Save Maintain the condition records for the condition types which will determine the various costs and discounts applicable during the shipment or shipment stages Transaction Code : TK11
  • 42. India SAP CoE, Slide 42 Shipment Cost Processing Transaction Processing
  • 43. India SAP CoE, Slide 43 Prerequisite to Shipment Cost Document Creation Shipment end status should be set in the Shipment to enable shipment cost calculation
  • 44. India SAP CoE, Slide 44 The Shipment Cost Document is created against a Transportation document after shipment completion. Shipment Cost Document Enter Shipment Number here Enter Shipment Cost Type here Transaction Code : VI01
  • 45. India SAP CoE, Slide 45 Shipment Cost Document will be created Double Click to View the Item and sub-item Details Shipment Cost Document (continued)
  • 46. India SAP CoE, Slide 46 Item Details Sub-Item Details Click here to View the Price Details Shipment Cost Document (continued)
  • 47. India SAP CoE, Slide 47 Shipment Cost Document (continued) Condition Type Net Shipment Cost Amount Net amount of Taxes
  • 48. India SAP CoE, Slide 48 Check this check box and save the document to Create Service Entry Sheet Shipment Cost Document (continued)
  • 49. India SAP CoE, Slide 49 Logistics Invoice Verification After creation of the service entry sheet, Logistics Invoice Verification is done to Post the amount to Financial accounting for Settlement to Service agent. Choose Service Entry Sheet Enter Service entry sheet number Transaction Code : MIRO
  • 50. India SAP CoE, Slide 50 Invoicing The Customer After creation of the Shipment cost document, the Billing document is created. The Shipment cost amount is charged from the customer in the Bill. The Conditions tab of the Billing document Line item has been shown below. Basic Freight Condition from Shipment Cost Transaction Code : VF01
  • 51. India SAP CoE, Slide 51 1 PrepareMe 2 TellMe 3 ShowMe 4 LetMe 5 HelpMe SD Shipment Costs
  • 52. India SAP CoE, Slide 52 Use the following Transaction codes for viewing the settings that are required for Shipment Cost Processing. T_60 Define Date Rules T_56 Define and Assign Shipment Cost Types and Item Categories T_57 Shipment Cost Relevance and Default for Shipment Cost Type T_05 Display pricing Condition Tables fro Shipment Costing T_06 Define Condition Types for Shipment Costing T_07 Define Access Sequence for Shipment Costing T_72 Define and assign shipping type procedure group T_71 Define and assign item procedure group T_70 Define service agent procedure group T_08 Maintain pricing procedure for Shipment Costing T_73 Define pricing procedure determination for shipment costs Shipment Costs
  • 53. India SAP CoE, Slide 53 Use the following Transaction codes for viewing the settings that are required for Shipment Cost Processing. T_53 Assign Purchasing Data OBYC Automatic Account Assignment Shipment Costs
  • 54. India SAP CoE, Slide 54 Use the following Transaction codes for Maintaining master Data for Shipment Cost Processing TK11 Maintain Condition Records Shipment Costs
  • 55. India SAP CoE, Slide 55 Use the following Transaction codes for Creation of Shipment Cost Document and Subsequent Processing VT03N View Shipment Document VI01 Create Shipment Cost Document ME23N View Purchase Order MIRO Logistics Invoice Verification VF01 Create Billing Document Shipment Costs
  • 56. India SAP CoE, Slide 56 1 PrepareMe 2 TellMe 3 ShowMe 4 LetMe 5 HelpMe SD Shipment Costs
  • 57. India SAP CoE, Slide 57 http://help.sap.com/saphelp_47x200/helpdata/en/d5/2285347860ea3 5e10000009b38f83b/frameset.htm Additional Info