SHIPMENT PROCESS
1. Overview
Transportation is an essential element in the logistics chain. It affects both incoming
and outgoing goods. Effective transportation planning and processing ensure that
shipments are dispatched without delay and arrive on schedule.
Transportation costs play an essential role in the calculation of the price of a product.
It is important to keep these transportation costs to a minimum so that the price of a
product remains competitive. Efficient transportation planning and processing helps
to keep these costs down.
Effective Transportation can be used in all the industries where the shipment costs
play a major role and are borne by the organization. Reducing the shipment cost in
turn reduces the delivering cost of the product.
2. Purpose
The aim of this document is to provide an understanding of the Outbound
Transportation Process from customization and transactional point of view in SAP
R/3.
Business Process:
An Organization has already implemented SAP and is now willing to implement the
Transportation Module in order to ensure the timely delivery to the customer and
reduce shipment costs. The business process to be implemented is as shown in the
figure below.
Tr.plng.Pt. Del. Plant
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Shipping
Documents
Serv.Agent Loading bay
Customer Process Description:
Step Description
No 1
1 Delivering Plant requests for the arrangement of transport
2 Transportation planning Point Plans for the movement of goods
with the service vendor
3 Transport Vendor supplies the requested mode of transport
4 Based on the shipping document the material is loaded
5 The material is delivered to the customer
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This process of arrangement of transportation for the timely delivery of the goods to
the customer is termed as Transportation process.
3. Terminology:
Mentioned below are some important terms used in Transportation:
SAP Terminology Descriptio
n
Forwarding Agent Agent who provides the transportation
Transportatio Org. unit responsible for planning shipments with
n Planning particular features. E.g.: A company has different
Point groups of shipping personnel responsible for
organizing shipments by train or ship
Shipment Document The document containing the details of the
deliveries, service agents, routes, stages,
planning and
execution times.
Shipment Type Shipment types contain all the essential control
features for the shipment document such as
number ranges, service level, and output and
partner determination.
Routes The route determines the itinerary and the means
of transport in shipping, and influences
transportation scheduling.
Shipment Cost The shipment cost document is the used for
Document shipment cost processing. It contains the details
related to accounting and the cost calculations.
Shipment cost type Shipment cost types and item categories contain
and item categories all the important control features for the shipment
cost document, such as number range, status
requirements for the shipment documents, and
parameters for shipment costing, parameters for
shipment settlement.
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4. Prerequisites:
Master Data:
Purchase Order is created for Vendor if the weekly or monthly orders are not created
during the transaction by the system.
Relevant pricing conditions are maintained.
Customization:
1. Transportation Relevance is marked for Delivery type, Delivery Item Type, Route.
2. Route Determination is active.
3. Route is determined in the delivery document.
4. Shipment types are created as desired.
5. Shipment pricing procedure is in place.
6. Shipment cost types are created and assigned to shipment types.
7. Purchasing Data is assigned.
8. G/L Account assignments are done.
4.1 Graphical Representation
Create Order Create Delivery
Create Shipment
Create Invoice
Create Shipment Cost Transfer Cost Pay Vendor
VI01
Color Legend:
Standard Sales Process
Outbound Transportation
Process
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5. Customization
Business case:
An organization has already implemented SAP SD module and now also needs to use
the shipment processing of SAP R/3 in order to arrange for transportation and settle
the costs with the service agent.
The organization has one transportation office where the employees are involved in
managing the transportation process and co-ordinate with the delivering plant and
the service agent for the daily requirement of transportation.
Each lorry can carry a group of deliveries or it can be for a single delivery.
The organization intends to calculate the shipment costs based on the gross weight
(i.e. the shipment cost is fixed at Rs/Kg) for a full load truck and the prices are
negotiated with the service agent individually.
SAP is to be configured for creation of shipment documents and such that when
creating the shipment cost document, the cost should be calculated based on the
gross weight of the goods in the shipment document.
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5.1 Maintain Transportation Planning Point
The transportation planning point represents a group of employees responsible for
organizing transportation activities. Each shipment is assigned to a specific
transportation planning point for transportation planning and shipment completion
The transportation planning point is assigned at Co-Code level.
Menu Path: Enterprise Settings > Definition > Logistics Execution > Maintain
transportation planning point
Transaction Code: SPRO
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5.2 Define Routes
The route determines the itinerary and the means of transport in shipping, and
influences transportation scheduling. The description of routes, service agent, distance
and lead times are defined in routes.
Menu Path: Logistics Execution > Transport > Basic
Transportation Functions > Routes > Define Routes
> Define Routes And Stages
Transaction Code: 0VTC
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5.3 Maintain Route Determination:
Routes are determined depending on the following criteria:
1. Country and departure zone (departure zone of the shipping point)
2. Shipping conditions agreed in the sales order.
The shipping condition is defined in shipping point determination.
3. Transportation group of the material
4. Country and transportation zone (receiving zone) of the ship-to party
Menu Path: Logistics Execution > Transport > Basic Transportation
Functions > Routes > Define Routes > Route Determination >
Maintain Route Determination
Transaction Code: SPRO
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5.4 Maintain Transportation Relevance
Delivery types and delivery item categories for which transportation processing is to be
carried out must be characterized as relevant for transportation.
All routes that are to be used for the shipment must also be set as relevant for
transportation.
Menu Path: Logistics Execution > Transport > Shipments >
Maintain Transportation Relevance
Transaction Code: SPRO
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5.5 Define Shipment Types:
The shipment types represent the different forms of transportation processing in
sales and distribution. The following forms of transportation processing are
distinguished:
1) Individual shipment, one or more deliveries are transported by a single mode of
transport from one point of departure to one final destination.
2) Collective shipment, one or more deliveries are transported by a single mode of
transport from one or more points of departure to one or more final destinations.
3) Multimodal shipment, deliveries are transported by several modes of transport
between one or more points of departure and one or more final destinations.
Menu Path: Logistics Execution > Transport > Shipments >
Define Shipment Types
Transaction Code: SPRO
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5.6 Define Shipment Cost types:
5.6.1 Define Item Categories
Item Categories characterizes the control parameters for calculation and settlement for
the shipment item.
Menu Path: Logistics Execution > Transport > Shipment Costs >
Shipment Cost Document > Shipment Cost Types and Item Categories
Transaction Code: SPRO
Select the appropriate value
as per the business
Values of the field “Generate PO”
Value Description
Do not generate purchase order
A Generate purchase order for validity period of 1 day
B Generate purchase order for validity period of 1 week
C Generate purchase order for validity period of 1 month
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5.6.2 Define Shipment Cost Type
Shipment cost type defines the number ranges for the shipment cost documents and
controls the minimum status after which the shipment cost can be calculated.
Menu Path: Logistics Execution > Transport > Shipment Costs >
Shipment Cost Document > Shipment Cost Types and Item Categories
Transaction Code: SPRO
When this minimum status is set in the
shipment document, shipment cost can be
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5.6.3 Assign Shipment Cost Type and item categories
Menu Path: Logistics Execution > Transport > Shipment Costs >
Shipment Cost Document > Shipment Cost Types and Item Categories
Transaction Code: SPRO
Based on this
valuation class,
G/L accounts
are determined
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5.6.4 Maintain Shipment cost relevance and default for shipment cost type
Menu Path: Logistics Execution > Transport > Shipment Costs >
Shipment Cost Document > Shipment Cost Relevance and Default for
Shipment Cost Type
Transaction Code: SPRO
In this node assign the shipment cost types to the shipment types and set an
indicator to show whether the cost type is relevant to shipment costing. This needs
to be done for every cost type.
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5.6.5 Define shipment cost relevance for shipment type
Menu Path: Logistics Execution > Transport > Shipment Costs >
Shipment Cost Document > Shipment Cost Relevance and Default for
Shipment Cost Type
Transaction Code: SPRO
This indicates the level at which the shipment costing needs to be done.
E.g.: If “Header” is selected it indicates that shipment header is relevant for shipment
costing.
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5.7 Pricing
5.7.1 Define and assign shipping type procedure group
Shipping type procedure group is assigned to individual
shipping type. Shipping type can be in the form of any
means of transport.
Shipping type procedure group is used in determining the shipment cost
pricing procedure.
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing
> Pricing Control > Define And Assign Pricing Procedures
Transaction Code: SPRO
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5.7.2 Define and assign item procedure group
Item procedure group is assigned to individual shipment item categories.
Item categories can be the type of cost which needs to be calculated and it defines
the different characteristics to be considered while distributing the cost...
Item procedure group is used in determining the shipment cost pricing
procedure.
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing
> Pricing Control > Define And Assign Pricing Procedures
Transaction Code: SPRO
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5.7.3 Define Service Agent Procedure Group
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing
> Pricing Control > Define And Assign Pricing Procedures
Transaction Code: SPRO
Service agent procedure group is assigned to individual service agent when the
vendor master data is created.
Service agent procedure group is used in determining the shipment cost pricing
procedure.
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5.7.4 Maintain Condition Type
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing
> Pricing Control > Define Condition Type
Transaction Code: SPRO
The calculation type needs to be “D” in case for gross weight dependent, as
required in this business case example.
Keeping the calculation type as “D” ensures that the prices will be calculated
based on the gross weight specified in the deliveries in the shipment document.
Since the prices are service agent dependent the access sequence used is “DIEN” in this
case.
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5.7.5 Maintain Pricing Procedure
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing
> Pricing Control > Define And Assign Pricing Procedures
Transaction Code: SPRO
Shipment pricing procedure is same as the standard pricing procedure
and uses condition technique to retrieve the data from condition tables.
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5.7.6 Define Pricing Procedure Determination for Shipment Costs
Based on the combination of Item category Determination group, Service
Agent Procedure Group, Shipping Type Procedure Group, pricing procedure is
determined
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing
> Pricing Control > Define And Assign Pricing Procedures
Transaction Code: SPRO
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5.8 Settlement
5.8.1 Assign Purchasing Data
This assignment plays an important role because based on these criteria the purchase
orders for service agents are searched and are sued to create the service entry sheets
with respect to PO.
Search Procedure for the PO:
TPPt: Transportation planning point is taken from the
shipment document SCTy: Shipment Cost type is taken
from the shipment cost document
POrg: /Pgr/Plant: Purchasing Organization, Purchasing group and Plant is assigned
to the combination of TPPt & SCTy.
On these values the purchase order is searched for the Vendor mentioned in the
shipment document
Menu Path: Logistics Execution > Transport > Shipment Costs >
Settlement > Assign Purchasing Data
Transaction Code: SPRO
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5.8.2 Automatic G/L account Determination
From the Transaction “GBB” and combination of General Modification key “VBR” and
valuation class the G/L account is determined for the posting to the freight accounts.
Menu Path: Logistics Execution > Transport > Shipment Costs >
Settlement > Automatic G/L Account Determination
Transaction Code: SPRO
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From the Transaction “WRX” and value of valuation class as “ “ the G/L
account is picked for GR/IR accounts.
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6. Transaction flow
Once the delivery document is created the creation of shipment
document can be done. All the prerequisites mentioned above should
have been achieved.
6.1 Create Purchase order with the forwarding agent (if automatic
creation at the time of creating shipment cost document is not activated)
Menu Path: Logistics > Materials Management > Purchasing > Purchase
Order > Create > Vendor/Supplying Plant Known
Transaction Code: ME21N
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6.2Create Condition record.
Menu Path: Logistics > Logistics Execution > Master Data > Transportation >
Shipment Costs > Prices > Create
Transaction Code: TK11
Please note that the rate is maintained per Kg basis.
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6.3Create Shipment Document
Menu Path: Logistics > Logistics Execution > Transportation > Transportation
Planning > Create
Transaction Code: VT01N
Click on this to
assign deliveries
Mention the transportation planning point and the shipment type accordingly.
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6.3.1 Assign Deliveries to shipment document
Total weight of the
shipment used for
Click on this
freight cost calculation
for overview
The deliveries can be selected using the selection criteria based on shipping point,
Route, Delivery numbers and many more.
Only the deliveries (can be for different ship to party) with the same route can be
selected in a single delivery.
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On the overview screen the different planning / check in / loading timings can be
Different Timings
can be captured
captured.
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6.4 Create Shipment Cost Document
Menu Path: Logistics > Logistics Execution > Transportation > Shipment
Costs > Create
Transaction Code: VI01
Shipment cost document is created with reference to the
shipment document. Carry out the account assignment if
required to do manually.
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The figure below shows the
calculation done: Freight rate:
Rs15/Kg
Gross weight as per the delivery
document: 150 Kg Total Freight charged
15 * 150 = Rs.2250
Account Assignment in shipment cost document:
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6.5Transfer Shipment Cost
Menu Path: Logistics Execution > Transportation > Shipment Costs > Change
Transaction Code: VI02
Once the shipment costs are transferred accounting document is generated as follows:
Note: To transfer the shipment
cost the status of these 3 fields
should be ‘C’
Select this to
transfer cost
The G/L
accounts shown below are the same which are defined in customization.
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6.6 Enter Vendor’s Invoice (Invoice receipt and verification)
Menu Path: Logistics Execution > Transportation > Shipment Costs >
Freight Invoice Check > Logistics Invoice Verification > Document Entry >
Enter Invoice
Transaction Code: MIRO
Once the service entry sheet is generated after the shipment cost is transferred,
vendor’s invoice can be settled as per the above transaction.
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6.7 Display Sales Order Document Flow Details
Menu Path: Logistics – Sales and Distribution – Sales – Order- Display
Transaction Code: VA03
Shipment Cost Document Flow:
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7. Updating Info structures:
In order to update the info structures for reporting purposes the following
customization settings needs to be done:
The statistics groups that can be used for the assignment of individual transportation
service agents.
The assignment of statistics groups to transportation service agents is carried out in the
maintenance of the transportation service agent master record (screen "Control").
7.1 Maintain Statistics Groups for Transportation Service Agent
Menu Path: Logistics Information System (LIS) > Logistics Data Warehouse
> Updating >
Updating Control > Settings: Transportation > Statistics Groups > Maintain
Statistics Groups for Transportation Service Agent
Transaction Code: SPRO
These statistics groups that can be used for the assignment of
individual shipment types. These statistics groups are assigned to
shipment types.
7.2 Maintain Statistics Groups for Shipment Types
Menu Path: Logistics Information System (LIS) > Logistics Data Warehouse
> Updating > Updating Control > Settings: Transportation > Statistics
Groups > Maintain Statistics Groups for Shipment Types
Transaction Code: SPRO
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7.3 Assign Statistics Groups for each Transportation Planning Loc.
Menu Path: Logistics Information System (LIS) > Logistics Data
Warehouse > Updating > Updating Control > Settings: Transportation >
Update Groups > Assign Statistics Groups for each Transportation
Planning Loc.
Transaction Code: SPRO
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7.4 Maintain Statistics for each Transportation Planning Point
Menu Path: Logistics Information System (LIS) > Logistics Data
Warehouse > Updating > Updating Control > Settings: Transportation
> Maintain Statistics for each Transportation
Planning Point
Transaction Code: SPRO
At this node specify the statistical weight, volume, distance and currency units.
The process includes the below activities.
1. Creation of Sales Order
2. Creation of Outbound Delivery
Shipment process will start form here
3. Creation of Condition Record for Forwarding Agent,
4. Creation of Shipment Document,
5. Creation of Shipment Cost Document,
A) PO and service entry sheet will be created automatically by the system. 37
6. Enter Vendor’s Invoice (Invoice receipt and verification).
1. Creation of Sales Order
SAP Easy Access> Logistics> Sales and Distribution> Sales> Order> Create
(VA01).Example sales order-50000001.
(Note-Route should determine in the sales order)
2. Creation of Outbound Delivery
SAP Easy Access> Logistics> Sales and Distribution> Shipping and
Transportation> Outbound Delivery> Create (VL01N).Example- outbound
delivery-25000208.
Shipment process start from below process
3. Creation of Condition Record for Forwarding Agent
SAP Easy Access> Logistics> Logistics Execution> Master Data>
Transportation> Shipment Costs> Prices> Create (TK11).
Enter the condition type ZFB0 (Copied from FB00 standard)
Click Enter
Enter Service Agent, Amount, and Unit and Save It.
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4. Creation of Shipment Document
SAP Easy Access> Logistics> Logistics Execution> Master Data>
Transportation> Shipment Costs> Prices> Create (VT01N)
(Note- Shipment document we can create with reference to outbound delivery
before PGI or after PGI)
But here I am creating shipment document after PGI
Enter Transportation planning Point: XXXX
Shipment Type: 0001 or 0002
Click Deliveries as shown below
Enter the shipping point, Ship to Party,
Total gds mvt stat.: C 39
Trns.plan.status: A
Click
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The deliveries can be selected using the selection criteria based on shipping point, Route,
Delivery numbers and many more.
Only the deliveries (can be for different ship to party) with the same route can be
selected in a single delivery.
On the overview screen the different planning / check in / loading timings can be
captured.
Enter the Forwarding Agent, check all the activities & shipment cost information like
below
Shipment cost Information,
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Save the shipment document.
5. Creation of Shipment Cost Document
SAP Easy Access> Logistics>Logistics Execution> Transportation> Shipment
Costs> Create (VI01).
Enter Shipment number and Ship. Cost type
Shipment cost document is created with reference to the shipment document.
Carry out the account assignment manually.
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Check the transfer cost and Save the shipment cost document as shown below
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For information,
Outbound delivery total weight: 346.800
We have maintained condition record for forwarding agent (860007) 20Rs Per KG
Net Value: 6936.
6. Display Shipment Cost Document
SAP Easy Access> Logistics> Logistics Execution> Transportation> Shipment
Costs> Display (VI03).
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If we double click on PO, automatic PO can be display,
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Here we can find automatic service entry sheet for automatic PO.
7. Enter Vendor’s Invoice( Invoice Receipt and Verification)
Logistics Execution> Transportation> Shipment Costs> Freight Invoice Check>
Logistics Invoice Verification> Document Entry >Enter Invoice (MIRO).
Enter Invoice Date, Service Entry Sheet and Amount
Enter Baseline Date, and Save it.
8. Display Document Flow
SAP Easy Access> Logistics>Logistics Execution> Transportation> Shipment
Costs> Display (VI03).
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Select the service entry sheet (5000000095) click .
Accounts shown below are the same which are defined in customization.
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