Different freight scenarios and Freight calculation, freight

PO determination and posting in FI

Hi,
I am continuing my previous document (Different freight scenarios and copy freight condition
from delivery to billing document.) in which I had shared some freight scenarios and explained
the most simplest one. In this document Ill be explaining the scenarios which are similar to each
other and settings are also same except some specific points which Ill explain. This document is
related to SD/MM/LE so it is not possible for me to post it in different spaces. Users from Sales
and Distribution, Logistics Execution and Materials Management can also take advantage of this
document.
Scenario 2
Freight is being paid to vendor and you have transportation module implemented. You calculate
freight automatically and post it to FI. Company pays this freight and bears the expense.
I am not going into detailed configuration steps of transportation management because that is
available in many links. I also assume that you have basic knowledge of Sales order processing,
transportation management and purchase order process. We will post freight charges through a
freight service PO and I will explain determination of this PO.
From Sales order point of view document flow would be like this.
Activity
Create sale order
Create delivery order
Create Shipment Document
Create shipment cost document
Post vendor payment invoice

Transaction Code
VA01
VL01N/VL10A
VT01N
VI01
MIRO

In this process you can create billing document with VF01 anytime after creating delivery order.
You can change the settings for billing document as per your requirement.
From STO point of view you will create STO with ME21N and create delivery with VL10B.
Rest of the process would be same.
Lets take an example and view this process in screens.
I have created a sale order, delivery and shipment document. Now creating shipment cost
document. Settings for shipment type, shipment cost document type and item category type has
also been shown here.

Shipment Type

Shipment cost item category type

Important Note: In this above screen you can see that I am not generating PO automatically
here. We can use it with both ways. Generte PO automatically or determine it using some
specific fields which Ill explain later. You can maintain here A B or C and if you dont want to
create PO automatically leave this field blank.
Shipment Cost document type and assignment of item category.

Now I am creating shipment cost document w.r.t shipment document.

You can see that net value is calculated based on condition record maintained for departure zone,
destination zone, vendor and country etc. There is transfer button which means if you mark this
and save document system will post this freight charges to FI. There can be two possibilities
here.
Create PO Automatically
As I have mentioned above that we can create PO automatically for one day one week or one
month. This automatically created PO will have service entry sheet as well based on your
configuration for account assignment category of PO. There will be no release strategy for this
automatically created PO. At end of the period you can post one single invoice for vendor for all
shipment documents.
Determine PO
If you want to use some release strategy for freight service PO then you dont need to create PO
automatically. You can create PO manually with ME21N. There are some specific fields which
must have similar/specific values in freight service PO and shipment cost document. These fields
are as follows.
Purchase Order Header
Company code
Purchasing organization
Purchasing group

Document currency
Vendor
Invoicing party
Validity start/end
Purchase Order Item
Plant
Purchase order item category
Account assignment category
Delivery date
Final invoice indicator
Block indicator
Value limit
For more information on these fields you can view SAP document which you will get in
Message no. VY033 when you mark transfer button and press enter system will give you this
following message.

Once you create a valid freight service PO system wont give you this message and will post
freight charges in that freight service PO. Let me show you in below screen.

I created this PO with identical fields in shipment cost document. Then I marked the transfer
field in VI02 and saved. System posted this in this freight service PO with following accounting
entry.

After this what you have to do is just post vendor payment through MIRO. System will credit the
vendor and debit the GR/IR account. Following would be accounting entry and purchase order
history view.

Scenario 2 is completed here. Though this is very lengthy process and there can be a lot of
screens but as I said earlier I have just shared important screens and assuming that you know rest
of the process. If you still have any confusion related to this scenario, you can ask me.
Scenario 3
Freight is being paid to vendor and you have transportation module implemented. You calculate
freight automatically and post it to FI. Comapny doenst pay this freight but charges to
customers.
This scenario is same as scenario 2 but with one additional settings which is to copy freight from
shipment cost document to SD billing document in VF01. For this we have certain controls in
copy control of billing document, pricing procedure of shipment cost document and pricing
procedure of billing document.
All the settings would be same as in scenario 2 except following which I am explaining in detail.
We can also say that following are the prerequisites for copying freight from shipment cost
document to billing document.
Condition type for Customer Freight
In shipment cost document you calculate freight automatically. Now it is upto you that whether
you want to bill the same amount to customer which you have paid to vendor or you want to add
some margin in it. If you want to bill the same then you dont need to create any separate
condition in shipment document pricing procedure. If you want to add some margin then you
need to create new condition and add margin using automatic calculation or you may also enter
this condition manually. In case of separate condition you need to mark it as static so that it
doesnt influence the freight charges which we have to transfer to FI using freight service PO. In
my case I am taking 100% of freight charges which we are paying to vendor. This is just a test
case and there is no rule for taking 100%.

Condition type for customer freight in Transportation IMG node

Add this condition type in shipment cost document pricing procedure

Condition Type for Billing Document

You must create condition type with same name as it is in shipment cost document pricing
procedure. Add this condition type in billing document pricing procedure and assign account key.
You also need to mark this condition as manual so that it can copy freight value from shipment
cost document.
Condition type

Add this condition type in billing pricing procedure. Here you also need to mark Transactionspecific pricing procedure in V/08 for billing document pricing procedure. This will make sure

that static tick mark for this condition is redetermined. Check the F1 help of this field for further
details.

After this you need to make sure two more aspects. Number one is that you have maintained F in
copy control from delivery to billing document in VTFL. Check for the item category you are
using.

In shipment document status for Overall status of calculation of shipment costs for shipment
VTTK-FBGST must be Completed. In my case I am using stage level shipment so header level
is not relevant for calculation but stage level is calculated so the status is complete.

If all these settings have been made in your system then you can add customer freight condition
in shipment cost document. If you are using same conditinon for customer and
transporter/vendor freight then you just need to check that whether it is calculated or not. In my
case I have made ZMZM condition in shipment cost document and in billing document.
Shipment cost document condition tab and its payment to transporter/vendor.

Billing Document of customer and its accounting document.

In this document you can see that sales value is 105.04 and freight which we are charging to
customer is 100. Both revenues are posted in separate general leedgers and customer has been
debited with 204.60. This is my test case and you can make settings as per your own
requirement.
Scenario 4
Company has its own transportation vehicles and it doesnt pay freight to any vendor but
calculates and charges this separately to customer.
In this case settings are same as in scenario 3. You only need to do is one thing is that dont
create a service PO and dont trasnfer it to FI. All other settings would be same.
Scenario 5
Company pays freight to vendor and charge this freight to material price in plant to plant transfer
under same company code. This freight is calculated in shipment cost document automatically.
This scenario only works for the materials which have pricing price control V Moving average
price in material master data. For price control S you have to implement material ledger and
freight cost would be charged to material price when you run closing cycyle in material ledger.
For further information yo can view a thread I raised for this in my this link.
For configuring this scenario you need to take care of following things.
Activate pricing for STO and add freight value condition with no value in STO. For this you can
follow the below path.

In condition type of STO pricing procedure which you will enter with no value, activate the copy
shipment cost by checking this below field.

Condition FRB1 with no value in PO

When you create STO > Outbound Delivery you must not PGI it before you create shipment
cost document. If you PGI it before shipment cost document, system wont charge the price to
material. Create STO > Outbount delivery > Shipment Document > Shipment Cost Document
and after that PGI. In this shipment cost document you wont see the transfer action box which
we use to transfer cost in FI. Reason behind this is that cost would be charged to material and
GR/IR account will also be posted with credit value when you do PGI.
Shipment Cost Document without transfer action box.

Accounting Document when you PGI. You can see the debit and credit entries difference and
also GR/IR credit entry.

Below is the accounting document which is created at the time of MIRO when you pay the
freight value to transporter.

These are few scenarios which comes in my mind. There could be many others but if you know
all of these I think you can configure the system the way you want. With little tweakings all other
scenarios could be covered.
If I have missed something or you have something to add in this document please write me in
comments. I would be happy to see positive/negative feedbacks because I always learn from it.
I have spent enough time to learn and test all these scenarios on my own but I would like to
thank Jrgen L and Lakshmipathi G because I got guidance from these two SAP Masters.

Different freight scenarios and copy freight condition from delivery to billing
document.

Hi
From sales point of view there are different processes that how you are managing your freight. If
you are delivering some physical goods by using some vehicle and paying its transportation cost
to vednor then you can have various options or requirements that how this freight should be
calculated and posted. It depends on management decision and their requirement that how do
they want you to configure this in system. I am listing down some scenarios and in this document
I am going to explain most simplest one and after this Ill move on to others in next documents.
1. Freight is being paid to vendor/transporter and you dont have transportation module
implemented. You also create accrual/clearing entry for this.
2. Freight is being paid to vendor and you have transportation module implemented. You
calculate freight automatically and post it to FI. Company pays this freight and bears the
expense.
3. Freight is being paid to vendor and you have transportation module implemented. You
calculate freight automatically and post it to FI. Comapny doenst pay this freight but
charges to customers.
4. Company has its own transportation vehicles and it doesnt pay freight to any vendor but
calculates and charges this separately to customer.

5. Company pays freight to vendor and charge this freight to material price in plant to plant
transfer under same company code. This freight is calculated in shipment cost document
automatically.
There could be many other scenarios but by following these and by following the configuration
which I am going to explain in these you would be able to cover up most of the scenarios.
In this document Ill be covering point number one only which is how to enter freight in delivery
document and copy this to billing and post in FI with accrual entry. This accrual entry will be
debiting freight expense and crediting freight payable liability which will be debited later on
when we will pay to vendor.
Configuration steps.
While explaining these steps I assume that you are familiar with basic configuration steps and
prcesses.
Create separate pricing procedure in V/08 with only one condition in it i.e. Freight Expense. This
freight expense is basically an accrual condition and you have marked it as accrual in V/06 under
control data 2. Condition class A and calculation type is C. This is manual condition and no need
to maintain any access sequence. If you want to make it automatic then use access sequence and
maintain condition record.

Assign this pricing procedure to your delivery type. For delivery types we cant determine
pricing procedure like we do for orders or billing documents.

Now maintain E in pricing source for copy control from delivery to billing document in VTFL
Tcode.

Configuration is completed and you can now test your scenario. I am listing down the steps that I
did for its testing.
Created sale order with VA01.
Created delivery order with VL01N and entered freight charges at header level in delivery
document because this freight is for complete delivery document.

Created invoice in VF01 and here you can see that freight charges have been copied from DO to
billing document.

Posted invoice to FI with VF02 and in accounting document you can view that freight expense is
with debit entry and freight accrual is with credit.

This is how we control freight with most simplest and easiest way. I will continue this document
by explaining key points in other scenarios I have listed above. If you have some other scenario
which I have not covered in these 5 listed scenarios then I would appreciate if you share that in
comments section and I will try my level best to cover that too in this document.
Positive/negative feedback will help me to improve next documents.

WE DO SHIPMENT AND TRANSPORTATION CONFIGURATION AS WELL AS SHIPPING

COST CALCULATION BASED ON CLIENT REQUIREMENT U R TASKS CAN ALTER
<b>SHIPMENT COST</b>

The shipment cost pricing procedure will have certain condition types defined in it. we need to
maintain a condition record for that condition type.
For example if your shipment cost is defined as a rate per distance per weight, then you need to
define a condition type in the shipment cost pricing procedure and maintain a record in master
data under transportation via SAP menu.
once you create a shipment cost document, the system finds the weight from the delivery and the
distance from the shipment, it finds the condition record for this combination and populate to
shipment cost document.
Create shipment doc. t.code: VT01n
Create shipment cost doc. t.code: VI01
Shipment cost settlement and documents
Use
After the shipment cost settled in shipment cost document, it has the following affects:
It creates a service entry sheet that refers to the purchase order determined.
It posts acceptance of services performed.
It creates an accounting document for the accruals.
Further subsequent documents are created in FI.
Now we check some of the above documents by using the document flow.
Procedure
1.Access the transaction using:
Menu Logistics &#61614; Logistic Execution &#61664; Transportation&#61664; Shipment cost
&#61664; Display&#61664; Single document
Transaction code VI02
2.Enter values like this in selection screen:
Field Name Value Comments
Shipment cost No. Enter the no. you note down in previous step.

3.Press enter, on the Standard display Overview: Freight Cost Items screen, press document
flow button.
4.Double click the service acceptance line and you can see the system post a service goods
receipts upon the purchase order, also you can check the accounting document.
5.Exit the shipment cost document.
Settlement with forwarding agency
Use
After the shipment document was settled, it generates a record in GR/IR, and after we receive
invoice from the vendor and post incoming invoice, the GR/IR account is cleared and the
vendors A/P account is debited.
The following steps are included:
check the GR/IR account
check the vendors A/P account
post invoice from the vendor by using Logistic invoice verification,
check GR/IR account and vendors account again.
Procedure
1.For checking GR/IR account, Access the transaction using
Menu Logistics &#61614; Material Management&#61664; Logistic Invoice
Verification&#61664; GR/IR account maintenance &#61664; Maintain GR/IR account
Transaction code MR11
2.Enter values like this in selection screen:
Field Name Value Comments
Company code
Posting date Todays date The valid posting date
Purchase order date from to Appropriate range

3.Press the execute button, then the relative GR/IR account listed, you can check the related PO
date in which, the service items can be shown.
4.For checking A/P account, Access the transaction using
Menu Accounting &#61664; Financial Accounting &#61664; Accounts Payable &#61664;
Account &#61664; Display balance
Transaction code FK10N
5.Enter values like this in selection screen:
Field Name Value Comments
Vendor
Company code
Fiscal year Current year
6.Press execute button
7.In this case, system should tell you there is no records find in the fiscal year because we do not
post any information for this vendor, the amount still in GR/IR account.
8.For posting invoice from the vendor, Access the transaction using
Menu Logistics &#61614; Material Management&#61664; Logistic Invoice
Verification&#61664; Enter invoice
Transaction code MIRO
9. Enter values like this in selection screen:
Field Name Value Comments
Invoice date Todays date
PO reference tab
Select Transportation service Agent
More allocation criteria The next button
Shipment cost header On the pop up screen

Shipment cost number The no. you processed in the previous step
10.Execute, you can see the relative cost amount is bring from the shipment cost document
11.Press Basic data tab and enter the same amount as the filed amount in PO reference tab. you
may calculate the tax by yourself or by the system, but make sure the balance is zero (the traffic
light is green). If the system asks for baseline date, enter system date.
12.Post the document by pressing the save button.
13.Check the invoice
14.Check the GR/IR account, you can use t-code or by menu like in step 1-3, here, you will find
the GR/IR acc. cleared.
<b>SHIPPING </b>
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LESHP/LESHP.pdf
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/LETRA/SDTRA.pdf
Direct Shipping:
Direct Delivery from Vendor to Recipient
The merchandise is ordered from a vendor and delivered direct to the recipients. In this case, the
merchandise does not go through the distribution center. The only follow-on documents
generated are vendor purchase orders.
Indirect Shipping:
Delivery from Vendor to Distribution Center and then to Recipient
Two movements of merchandise are involved:
Delivery from vendor to distribution center
The merchandise is ordered from a vendor and delivered to one or more distribution centers.
Vendor purchase orders are generated as follow-on documents for this.
Delivery from vendor directly to recipient
Once the vendor has delivered the goods to the distribution center, they are then sent to the
recipients. Warehouse orders, sales orders or deliveries are generated as follow-on documents for
this.

SHIPPING
Creating a Delivery - VL01N
Displaying a Delivery - VL03N
Changing a Delivery - VL02N
Shipment Inquiry / Display - VT03
Adjusting Transfer Order - Confirmation Quantity - LT12
Collectively Confirm Transfer Order - LT25
Batch Shipment Confirmation - VL19
PGI Reversal Cancellation - VL09
Creating Service Provider/Carrier Master Data - XK01
Maintaining Serive Provider/Carrier Master Data - XK02
Displaying Service Provider/Carrier Master Data - XK03
Maintaining Product Master/Serial # Profile/Unit of Measure/Shipping Unit - MM02
IDoc Inquiry - WE02 / WE05
VL00 - Shipping
. VT00 - Transportation

Transportation Configuration and Process

Flow
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Created by Jyoti Prakash, last modified on Dec 23, 2011

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Transportation Configuration
Terms used transportation module
There are various terms and terminologies associated with the transportation module with which
one needs to be familiar

Transportation Planning Point.

Shipping Type.

Route.

Shipment Type.

Shipping Type Procedure Group.

Shipment Cost Type.

Item Category Shipment Cost.

Item Determination Procedure Group.

Pricing Procedure for Shipment Cost.

Process Configuration Part-I

Step: 1 - Maintain Purchase Organization
SPRO - Enterprise Structure - Definition - Materials Management - Maintain Purchasing
Organization.

Step: 2 - Create Purchasing Group

TCode: OME4
SPRO - Materials Management - Purchasing - Create Purchasing Group.

Step: 3 - Maintain Transportation Planning Point to Company Code.

TCode: OVXT
SPRO - Enterprise Structure - Definition - Logistics Execution - Maintain Transportation
Planning Point
Step: 3A - Assign Transportation planning point to company code.

Step: 4 - Assign Purchasing Organizations to Company Code.

TCode: OX01
SPRO - Enterprise Structure - Assignment - Materials management - Assign Purchasing
Organization to Company Code.

Step: 5 - Assign Purchasing Organizations to Plant.

TCode: OX17
SPRO - Enterprise Structure - Assignment - Materials management - Assign Purchasing
Organization to Plant.

Step: 6 Create Vendor Account Group

TCode: OMSG & Number Range OMSJ
SPRO - Financial Accounting - Accounts Receivables and Accounts Payables - Customer
Accounts - Vendor Accounts - Master Data - Preparations for Creating Vendor Master Data Define Account Group

Step: 8 Create Vendor

TCode: XK01

Step: 9 Define Modes of Transport

TCode: 0VTB
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Define Modes of Transport

Step: 9A Define Shipping Types

TCode: 0VTA
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Define Shipping Types
Select New Entries and Assign the Shipping Type (e.g. Road or Train) and Assign Mode of
Transport (Mdtr) and Assign Shipping type Procedure group.

Step: 9B Define Transportation Connection Point

TCode: 0VTD
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Define Transportation Connection Point.

Step: 9C Define Routes and Stages.

TCode: 0VTCS
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Define Routes and Stages.
Select the New Entries and Enter the Details - Then Select the Routes stages and define

Step: 9D Maintain Stages for all Routes.

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Maintain Stages for all Routes.

Step: 10 ROUTE DETERMINATION - Define Transportation Zone

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Define Transportation Zone.

Step: 10A Maintain County and Transportation Zone for Shipping Point.
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Maintain County and Transportation Zone for Shipping Point.

Step: 10B Define Transportation Groups

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Define Transportation Groups

Step: 10D Maintain Route Determination

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
Routes - Maintain Route Determination.

SHIPMENTS

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Shipments

Step: 11 Define Shipment Types

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Shipments Define Shipment Types.

Step: 12 In Customer master data.

In Address of General data. Enter the Transportation Zone id. And save you will get the route.

Process Configuration Part-II

1) Maintain transportation planning point through Menu as follows:
SPRO - Enterprise Structure - Definition - Logistic Execution - Maintain transportation planning
point

2) Defining modes of transport:

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define
routes - Execution Define modes of transport
Use the standard configuration like:

01

Road

3) Define shipping types :

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Shipping
types

01

Truck

01

0001

4) Define transportation connecting point :

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes Connection points
You can copy the standard point and make it FB01 as departure zone and FB02 as destination
zone

5) Define routes and stages.

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes Transportation routes and stages
Use the standard route and copy it as FB0001 and enter the departure zone and destination as
what we created.

6) Defining Transportation Zone:

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Router
determination
Use the standard transportation zone depending on the route so as for the example use
0000000003 - Southern Region

7) Maintain country or transportation zone for shipping points

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Transportation
zone for shipping point
Assign Shipping point & route to the desired country

8) Maintain route determination:

SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes
Determination
Country of departure

Departure Zone

Country of destination

And enter the data's needed like shipping condition 01, etc.
Maintain Transportation relevance for

shipping point

sales document type

delivery types.

9) Now create shipping types

SPRO - Logistics Execution - Transportation - Shipments - Shipment

10) Define and assign traffic zones through menu as follows:

Destination Zone

TCode: T_76
SPRO - Logistics Execution - Transportation - Shipment - Shipments cost - Functions Tariff
Zones
Copy the standard to create TARIFF ZONE of own.
Then assign already created transportation planning point to the tariff zone

11) Define and assign pricing procedures

SPRO - Logistics Execution - Transportation - Shipment - Shipments cost procedures

Pricing

Price control

assign pricing

12) Assign purchasing data:

SPRO - Logistics Execution - Transportation - Shipment - Shipments cost - Settlement

13) Assignment
Assign Transportation planning point to combination of

shipping condition

purchase organization

purchasing group

plants

14) Define Automatic G/L account determination:

TCode: OMWB
SPRO - Logistics Execution - Transportation - Shipment - Shipment Costs - Settlement ()
Assign a GL account

15) Automatic determination of CO assignments:

TCode: OKB9
SPRO - Logistics Execution - Transportation - Shipment - Shipment Costs - Settlement Determination of CO Assignments

16) Maintain shipping point address.

SPRO - Enterprise Structure - Logistics Execution - Definition - Define, copy, Delete, check
shipping - Definition point
Maintain the address

17) Creating G/L account centrally.

TCode: FS00
SAP Easy Access - Financial - General Ledger - Master Records - Accounting - Accounting
Individual - Processing Centrally

18) Enter the G/L account for your company code

19) Create transportation condition records:
TCode: TK11
Logistics - Master data - Transportation - Shipment cost - Price

Transportation Process Flow:

1. The system determines the pricing procedure for the shipment cost item-using

transportation planning point

service agent

shipment cost item category

2. Calculation Basis
3. Condition Record
4. Access sequence.

Step 1. Create Delivery Document

TCode: VL01N
With reference the sales order create a delivery using TCode - VL01N and pick the goods.
Step 2. Create Shipment Document
TCode: VT01N
After the status of the delivery is open for transportation planning, it is possible to create a
shipment document to schedule the transportation.
Now create a shipment using TCode - VT01N (SAP Easy Access - Logistics - Logistic Execution
- Transportation - Transportation Planning - Create - Single document)
and assign the delivery to the shipment document. Make sure to enter the carrier and other details
before performing the transportation planning and execution.

After the deliveries are scheduled by shipment and the shipment is executed, now it is time to
maintain and close the shipment document in order to record all relative information and ready
for the shipment cost settlement.
So, save the shipment document and PGI for the delivery would be done automatically.

A shipment represents a physical goods movement between two or more locations.

For the system to create a shipment, shipping-relevant deliveries must exist.

You use Transportation Planning to group pending deliveries into shipments and then to
perform the shipments.

The outbound delivery documents contain routes that the system calculates in route
determination, and a transportation planning date for the delivery.

Dynamic transportation planning is responsible for grouping together outbound deliveries into
shipments that have at least the same route, visit plan type and the same transportation planning
date.
The following restrictions can be taken into account for a shipment in Dynamic Transportation
Planning:

Weight

Volume

Variable capacity

Number of stops

Maximum duration

Loading units

Step 3. Creating Shipment Cost Document & Cost Settlement

TCode: VI01 (SAP Easy Access - Logistics - Logistic Execution - Transportation - Shipment
cost - Create - Single document
After creation of shipment cost doc. The document is ready settling the Shipment cost.
Step 3.1. Use TCode VI02, enter shipment cost no. and press enter.
Step 3.2. Then go to Overview screen Freight cost items, Select the line item and double click it.
Step 3.3. Go as main menu: Item - Acc. assignment, you enter G/L acc. and cost center to which
the transportation cost will be posted.
On the Standard change, details - Freight cost items screen, then check the check box "Transfer",
which means you will transfer the relative transportation cost to FI/CO, in this case, the system

should determined which Purchase Order will used to settle the cost, so after you check the
"Transfer" check box.
Press save button on the current screen.
Effects of Shipment cost settlement and related documents

After the shipment cost settled in shipment cost document, it has the following affects:

It creates a service entry sheet that refers to the purchase order determined.

It posts acceptance of services performed.

It creates an accounting document for the accruals.

Further subsequent documents are created in FI.

Generally process is
1) VL01N
2) VT01
3) VL02N - PGI
4) VI01
5) ML81N - Service Entry Sheet
6) MIRO - Invoice Verification

Diagrammatic Representation of SD Transportation Process Flow

Shipping docs (VT01) are created before PGI
You cannot carry out transportation planning or creation of shipment after the goods issue has
been executed. Once goods issue is done it means that the material has left your premises so
there is no need for a transportation planning after it.
In case you need carry out the shipment documents at the end of the day you could just create the
delivery documents during the day and at end of the day create the shipment documents and the
goods issue

Shipment Types
Definition
The shipment type contains all the important control features for a shipment, such as the number range,
whether the shipment is inbound or outbound, how leg determination is performed, and which leg
indicator has been set for a shipment of this type. You can also enter a selection variant for the shipment
type. The values defined in the variant appear on the selection screen when you create a shipment
document of this type.
The system supports the following shipment types:

Individual shipment

Collective shipment

Transportation chain

Individual shipment
An individual shipment includes

One or more deliveries

One point of departure

One destination

One mode of transport

Collective shipment
A collective (or milk-run) shipment includes

One or more deliveries

Several points of departure

Several destinations

One mode of transport

Transportation chain
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).
Transportation Chain

The department responsible for transportation by land organizes truck shipments and
another department organizes ships and their cargo for goods shipment by sea. Each
mode of transport (truck and ship) requires individual shipping papers. Each mode of
transportation requires separate transportation papers, meaning that you need to create
a shipment document for the overland leg and another for the overseas leg of the journey.

If shipments use more than one mode of transportation, it is a good idea to create a
transportation chain. Because you will have a separate shipment document for each
mode of transportation, you can maintain separate output, texts, statuses, and so on.

Example for using a transportation chain

At shipping points 0001 and 0002 in Germany, a large number of deliveries are to be sent to customers in
the United States by the beginning of December. You and your customers agreed that part of the
shipment be sent carriage paid and the other part carriage, insurance, freight paid to (CIF) New York only
(meaning that the end customer must pay carriage, insurance and freight from New York to the final
destination).
The goods are to be transported by land within Germany, by sea from Hamburg to New York, and by land
again in the United States. It is, of course, possible to document the entire process in a shipment
document. However, problems can arise if certain parts of the shipment functions are used:

For instance, data on the shipment status always refers to the entire shipment document (for
example, the status "Loading finished"). However, in this example loading takes place several
times.

For the same reason, an assignment of dates and texts to a handling unit is difficult because
these can change within the shipment document. The very definition of a handling unit is in itself
problematic.

Output to be created in combination with the shipment document contains all data for the entire
shipment document. When the truck driver leaves the shipping point, his printout also contains

data that refers to the ship. This is unnecessary and a nuisance. Processing several required
preliminary legs at different times also requires that output be printed at different times.
In cases like this, it makes more sense to use a transportation chain in which deliveries are passed on in
a series of different shipments. In the above example, you would create several shipment documents in
the system: ten preliminary leg shipments by truck, one main leg by ship, and if necessary, eight
subsequent legs by truck again. That way, you avoid the problem of assigning deadlines, output, or texts
to the packaging material.
With that in mind, you might put together your transportation chain like this:
1. Create a main leg
At transportation planning point 0001, you create a main leg shipment for all deliveries to be sent
by ship from Hamburg to New York City at the beginning of December. There should be a special
shipment type set for this set in Customizing. This could include the following settings:
o

Set the leg indicator field for the shipment header to Main leg. The system will recognize
that this shipment must be linked to other shipments.

The leg determination type for this shipment type should be .This means that no
automatic leg determination will be carried out. This is reasonable since the Hamburg-toNew York leg does not include any points of departure or destinations from the delivery
(however, this data will be taken into account during leg determination).

Route determination resulting in the Hamburg-to-New York route may have already been
carried out in the delivery. If you want to copy this route automatically into the main leg
shipment, you can specify in Customizing that routes must be copied into the shipment
document. Copying starts as soon as you set the Planned status in the shipment
document.(Note that the route in the deliveries must be unique.) At the same time, the
service agent can also be copied automatically from the delivery provided you have made
the appropriate settings in Customizing and that the same service agent has been
assigned to the deliveries.

When the deliveries were created, they were given transportation planning status A, meaning
they were ready for transportation planning. Now, after creating the main leg shipment, these
deliveries have transportation planning status B, meaning that they have been partially planned
(since a main leg shipment needs preliminary and possibly subsequent legs).

2. Create preliminary legs

The preliminary leg shipments that are used to send the goods from shipping points 0001 and
0002 to the ship in Hamburg can be organized much faster than the ship itself, which is why they
are planned at this time. You must now combine all deliveries in the main leg shipment into one or
more preliminary leg shipments. You can do this in the Create Shipment transaction.
To do this, you must select all deliveries in the main leg shipment. The transportation planning
status of the delivery may be helpful in determining which deliveries are in the main leg shipment
since their status is now set to B instead of A. Of course, this is not sufficient as a single selection
criterion. He can enter further selection criteria that are used during delivery selection for the main

leg. This may be impractical since you may not now what the selection criteria were or too many
deliveries may be selected.
Therefore, it is better to specify the shipment number of the corresponding main leg shipment in
the Reference to line when selecting deliveries. If you do not know the number, press F4 and a
selection screen will appear. In this case, a further selection screen for shipment number
selection appears. On this screen, you can specify the person who created the shipment
document, the point of departure, and the date in order to determine the number of the main leg
shipment.
You create shipments using the worklist you defined. If each delivery corresponds to exactly one
truckload, the planner can call up the function Edit
Automatic planning One dlv. one shipment, which

creates a separate shipment for each

delivery.
You should use the following settings:
o Set the leg indicator to preliminary leg.
o Set the leg determination type to 1 (leg determination according to pick-up
sequence and itinerary).
o Do not copy the route from the delivery. It may be a good idea to copy the service
agent.
When the Planned status is set, leg determination begins, but the route is not copied from
the deliveries. It will determine the pick-up sequence. In addition, the system suggests
Hamburg as destination since the deliveries are part of a main leg shipment that runs from
Hamburg to New York.
When the shipment is saved, the system updates the delivery status. The status for the
carriage paid deliveries remains B (partially planned), since the second part of the
Incoterm was left blank and the system assumes that a subsequent leg is required. The
status of the deliveries with CIF New York is set to C (completely planned) since the
second part of the Incoterm has been specified and the system assumes that a subsequent
leg is not necessary.
3. Create subsequent legs
You create subsequent legs the same way you create preliminary legs. Use these settings:
o Set the leg indicator to subsequent leg.
o Use category 1 for leg determination.
o Do not copy the route from the deliveries.

In order to create these shipments, search for deliveries with a transportation planning
status of B. The system then finds only those deliveries for which a subsequent leg is to
be created. If the Planned status is set, it also carries out leg determination. The system
automatically suggests New York as a point of departure, since the main leg shipment
ends in New York. The sequence in which the goods are delivered (itinerary) is
determined by the sequence in which the deliveries are displayed on the screen. If the
subsequent leg shipments are saved, the transportation planning status of the
corresponding deliveries is set to C (completely planned) since these deliveries now have
preliminary, main, and subsequent legs.
Following these steps ensures that every delivery is included in the transportation chain.
In the example, there are ten preliminary leg shipments to Hamburg followed by a main
leg shipment and eight possible subsequent leg shipments in the United States. In this
way, a group of deliveries forms a network of shipments.
4. Monitor the transportation chain
In order to monitor the shipments, choose Environment Transportation info Shipment
list or Environment Transportation info Transportat.network depending on whether you
are processing orders, deliveries, or shipments. Worklists for transportation planning and
processing may also provide an overview. To generate a worklist, enter one of the
shipment numbers that make up the transportation network in the Reference to line. The
system will then select all shipment documents in the network.