Shipment Cost Calculation

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Shipment Costing

CONTENTS: Page

1) Introduction 2

2) Customizing settings 2

A) Assignment of TPPt to company code 2

B) Configuration of shipment type 2

C) Assignment of Shipment Cost Type to Shipment Type 3 D) Configuration of Shipment Cost Type 4 E) Configuration of item category 5 F) Define and Assign Tariff Zones 5 G) Define and Assign Activity Profiles 7 H) Pricing procedure determination 9

I) Purchasing data 11

J) G/L Account Determination 12

K) CO assignment 13

3) Master data settings 14

A) Material master data 14

B) Customer master data 16

C) Vendor master data 20

D) Price Condition 21

E) G/L account 22

4) Process demonstration 25

A) Create purchase order 25

B) Create sales order 25

C) Create outbound delivery 27

D) Create shipment 29

E) Create picking wave 31

F) Create transfer order 32

G) Continue with shipment 37 H) Create Shipment Cost Document 38

I) Transfer Shipment Costs to Accounting 42 J) Logistic invoice verification using ERS 44

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1) Introduction

In this document I will first show the customizing - and master data settings which play a role in shipment costing, than I will demonstrate the process from end-to-end. The scenario is to let the system automatically calculate shipment costs based on the weight of the goods in the delivery . In the demo the goods will travel from sending plant is 1000 (located in Hamburg), to a customer(shipto) located in Berlin. After the

shipment costs are calculated they will be automatically transferred to FI-accounting, and at last the FW-agent will be credited for his services using ERS.

In the process demonstration use will be made of Shipment Type = 0001 and Transportation Planning Point(TPPt) = 1000. Therefore the customizing paragraph of this document will concentrate on the settings for and around these organizational elements.

2) Customizing settings

A) Assignment of TPPt to company code:

Call up the customizing transaction as follows:

Menu Path IMG → Enterprise Structure → Definition → Logistics Execution → Maintain transportation planning point

Tr. code / Table - / -

Company code = 1000

B) Configuration of shipment type:

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Define Shipment Types

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C) Assignment of Shipment Cost Type to Shipment Type

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Shipment Cost Relevance and Default for Shipment Cost Type

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Shipment Cost Type = 0002.

Double click on line: Define shipment cost relevance for shipment type

D) Configuration of Shipment Cost Type

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Shipment Cost Document → Shipment Cost Types and Item Categories

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Double click on line: Assign shipment cost types and item categories

Item cat. = 0002

E) Configuration of item category

Double click on line: Define item categories Select item cat.=0002 and then click on button

F) Define and Assign Tariff Zones

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Basic Functions → Define and Assign Tariff Zones Tr. code / Table - / -

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Double click on line: Define organizational key for tariff zone assigs

In the demo ServcAgent=1058 will be used so we check what has been assigned to it. Double click on line: Assign tariff zone to org. key and post. code area

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I also check the same settings for plant 1000:

From this we can be sure that the Departure Tariff zone will be DE20.

G) Define and Assign Activity Profiles

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Define and Assign Activity Profiles

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H) Pricing procedure determination

When the shipping cost document is created the system needs to be able to automatically determine a pricing procedure in order to calculate the shipping costs.

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Pricing → Pricing Control → Define And Assign Pricing Procedures

We first have a look at the different selection criteria such as shipping type procedure group/ item procedure group/ service agent procedure group which the system uses to determine the pricing procedure.

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Item procedure group = 0003

Define pricing procedure determination for shipment costs:

Select TPPt=1000, then double click on: Determine pricing procedure

As the Item procedure group = 0003 and the Shipping type procedure group = 0001 the pricing procedure which will be determined is SDFC00.

To check the details of pricing procedure SDFC00 we go to the option “Maintain pricing procedure” within same path.

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Select SDFC00 and then double click on : Control data

Condition type FB00 will be used for calculating the shipment costs based on the weight of the goods.

After the costs has been calculated by the system, the accounting data needs to be determined and then settled to FI-accounting. To retrieve all the relevant data automatically the following needs to be customized:

I) Purchasing data

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Pricing → Settlement → Assign Purchasing Data

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For TPPt=1000 and SCTy=0002 the system will use POrg=1000 PGr=000 and plant=1000 to find a suitable Purchase Order with a service item in it, in order to create a service entry sheet.

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Pricing → Settlement → Maintain Account Assignment Category

Acc. Modification = VBR

J) G/L Account Determination

The system determines the G/L account for posting of the costs as follows: Call up the customizing transaction as follows:

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Pricing → Settlement → Automatic G/L Account

Determination Tr. code / Table - / -

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As the valuation class 3200, see shipment cost type 0002 in paragrapgh D, the G/L account will be 417000.

K) CO assignment

Because the costs will be collected on a cost center, see acct.assgt.cat. K in item cat. 0002 in paragraph E, the system will search for a cost center in below configuration.

Menu Path IMG → Enterprise Structure → Logistics Execution → Transportation → Shipments → Shipment Costs → Pricing → Settlement → Automatic Determination of CO Assignments

As the Cocd=1000 and the G/L account=417000, the cost center to be used will be 9030.

All relevant customizing settings has now been covered, so we can now take a look at the required master data settings.

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3) Master data settings

In this document I will only concentrate on the master data related to costing of the shipment, its settlement and crediting of the carrier. Master data like outputs will therefore not be explained.

The sales order will be made with order type OR and sales area 1000/10/00.

The customer no. from the system which will be used as soldto/shipto is 1000 (located in Berlin). The materials which will be sent to the customer are 100-100 and QS6X20.

The location they come from lean wm warehouse 010 which has been setup for plant 1000 and storage location 0001.

The carrier/forwarding agent is 1058 from paragraph 2F.

Price condition FB00 will be setup to record the price agreement with the carrier. Only the transport relevant views of the master data will be showed below.

A) Material master data

Call up the transaction as follows:

Menu Path Logistics → Materials Management → Material Master → Material → Display → Display Current

Transaction Code MM03

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Note the loadingGrp which is 0002.

In customizing we can check if for both loadingGrps a shipping point will be determined for plant=1000 and if the shipping point=1000.

Menu Path IMG → Logistics Execution → Shipping → Basic Shipping Functions → Shipping Point and Goods Receiving Point Determination → Assign Shipping Points Tr. code / Table - / TVSTZ

From the table TVSTZ I find for SC=01(standard)(we have to make sure the customer for this test has this shipping condition):

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B) Customer master data

Menu Path Logistics → Sales and Distribution → Master Data → Business Partner → Customer → Display → Sales and Distribution

Transaction Code VD03

In paragraph 2F we check whether the postal code of customer 1000 matches with the customizing setting:

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Next we check in customizing if and which route will be determined for this customer from plant 1000. Call up the customizing transaction as follows:

Menu Path IMG → Logistics Execution → Shipping → Basic Shipping Functions → Routes → Route Determination → Maintain Route Determination

Tr. code / Table - /

Click on button

Enter the shipping point no. and customer no. as above, then click on button .

Select the first line then click on line “Route Determination Without Weight Group (Order)” then “Route Determination with Weight Group (Delivery)”to see the routes:

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Menu Path IMG → Logistics Execution → Shipping → Basic Shipping Functions → Routes → Define Routes → Define Routes and Stages→

Tr. code / Table - /

Select R00001 then click on button

Double click on line “Route Stages” to see if there are any transportation connection points.

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.C) Vendor master data

Menu Path Logistics → Materials Management → Purchasing → Master Data → Vendor → Purchasing → Display (Current)

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D) Price condition

Menu Path Logistics → Logistics Execution → Master Data → Transportation → Shipment Costs → Prices → Create

Transaction Code TK11

Click on button

Selected second option and then button

Enter agent, tariff zones, calculation T, than press <Enter>.

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Enter scales ID 3:

Than entered the prices as above.

This scale has the following meaning: from 0 Kg 30,00 euro / 100 Kg, from 500 KG 26,00 euro / 100 Kg etc.

Click on button

Click on button .

With all this data we are now well prepared for the test.

E) G/L account

Details of the G/L account /cost element 417200: Call up following transaction:

Menu Path Accounting → Financial Accounting → General Ledger → Master Records →

G/L Accounts → Individual Processing → Centrally Transaction Code FS00

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Click on tab “Control Data”:

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Next click on button to display the configuration of the cost element:

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A) Create purchase order

We start with creating the purchase order with which we will buy the freight services. Call up following transaction:

Menu Path Logistics → Materials Management → Purchasing → Purchase Order → Create → Vendor/Supplying Plant Known

Transaction Code ME21N

Click on button

B) Create sales order

Call up following transaction:

Menu Path Logistics → Sales and Distribution → Sales → Order → Create Transaction Code VA01

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Go the menu and check for order completeness like below:

If ok then click on button

C) Create outbound delivery Call up the transaction as follows:

Menu Path Logistics → Sales and Distribution → Shipping and Transportation → Outbound Delivery → Create → Single Document → With Reference to Sales Order Transaction Code VL01N

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Enter selection criteria and then click on button

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Click on button

D) Create shipment

Menu Path Logistics → Sales and Distribution → Shipping and Transportation → Shipment → Create → Single Documents

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Click on button

To keep the selection simple we enter our delivery no. as above. Then click on button

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Enter Fwd. agent and route, press enter, click on button , next click on button

E) Create picking wave

Menu Path Logistics → Sales and Distribution → Shipping and Transportation → Picking → Wave Picks → Create → According to Shipment

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Click on button

F) Create transfer order

Menu Path Logistics → Sales and Distribution → Shipping and Transportation → Picking → Wave Picks → Monitor

Transaction Code VL37

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We also could have called this tx directly using

Menu Path Logistics → Sales and Distribution → Shipping and Transportation → Picking → Create Transfer Order → Collective Processing

Transaction Code LT42

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Select the line then click on button

The system shows the transfer order which has been created, and the no. of items it contains. Click on button

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Click on button

Click on button twice.

We see that the warehouse part is complete as the transfer order was confirmed in the step it was created. The picklist has been printed automatically. From the spool the standard SAP picklist can be displayed which for this case looks as follows:

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In case necessary we can make a reprint as follows:

Select the item than click on button to verify that the pick process is complete.

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G) Continue with shipment

Menu Path Logistics → Sales and Distribution → Shipping and Transportation → Shipment → Change → Single Documents

Transaction Code VT02N

Click on button to simulate checking in of the truck driver.

Than continue by clicking on “Loading Start” and “Loading End”.

At clicking on button and saving the shipment, the system will now post the goods issue of all deliveries contained in the shipment of which the TOs are confirmed.

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H) Create Shipment Cost Document

Menu Path Logistics → Logistics Execution → Transportation → Shipment Costs → Create → Single Document

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Press <enter> or click on button

As can be seen the system has fully calculated the shipment costs and also determined the G/L account and cost centre automatically.

Select the line item and then click on button

Note the item category which is 0002.

Note further that the net values per delivery item, resp. 1,80 and 90,00, are in accordance with the price condition in paragraph 2D.

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The other tabs have the following info:

Tab Tax:

Tab Conditions:

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Tab Service Procurement:

Tab Reference:

Go to the menu → Item → Account Assignment:

We can see that the customized G/L account and cost centre shown in par. 2E have been determined. At this point we could change these to other values.

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I) Transfer Shipment Costs to Accounting

Menu Path Logistics → Logistics Execution → Transportation → Shipment Costs → Change → Single Document

Transaction Code VI02

Flag the field Transfer then click on button .

This failed the first time, but after changing the delivery date in the PO from 30.12.2010 to 27.12.2010 the transfer succeeded.

Display of the shipment document. Call up the transaction as follows:

Menu Path Logistics → Logistics Execution → Transportation → Shipment Costs → Display

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Double click on the PO no., then go on item level to tab “Purchase Order History” :

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J) Logistic invoice verification using ERS

Menu Path Logistics → Logistics Execution → Transportation → Shipment Costs → Freight Invoice Check → Logistics Invoice Verification → Automatic Settlement → Evaluated Receipt Settlement (ERS)

Transaction Code MRRL

Enter some selection criteria like company code, plant and vendor.

One can run a test run first to check which purchase document(s) will be selected. Because once the execution is started the posting is done immediately.

Click on button

The system has created an invoice, doc. 5105609720, and the FI posting, see doc. 5100000360. Click on the FI document.

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As can be seen, the carrier/vendor has been credited for his services. This last step completes this process from logistic point of view.