Handling unit reversal

TRANSPORTATION PLANNING
Sd
RECIEPT AND PUTAWAY MANAGEMENT
INTERNAL MOVEMENTS AND ADJUSTMENT
Bin to bin transfer posting
STOCK REMOVAL
TRUCK LOADING AND SHIPPING

Transpotation planning process steps
Sales order selection and consolidation
Rate shopping and carrier selection
Release palnned shipments
Generate delivery
Assign carrier to delivery

Basic transpotation processing
Transpotation relevance
Scheduling forward and backward
Routes routes determination
Basic functions in shipment process
Inco terms

T

Transportation Configuration and Process Flow
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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:
Shipping type Description
01 Road
3) Define shipping types :
SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Shipping types
PT Description Mdtr STPG
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 Destination Zone
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:
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 schedul e
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
sd
transportation
configuration
process_flow
shipment
shipment_cost_settlement
2 Comments
1.
Guest
The statement below is not fully true:
"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"
For multiple leg transportation (eg. land-ocean-land) we might want to create transportation chain by creating separate
shipment for each leg. Then the last leg transport planning starts much later than the actual goods issue of the delivery from
the first leg. So there are situations when shipment creation happens only after goods issue.

Basic Contract terms In Logistics
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Added by Satyajit Mohanty, last edited by Jyoti Prakash on Dec 22, 2011 (view change)
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Basic Transport Contract Terms (INCOTERMS)
The meaning of trade terms vary from country to country. To avoid confusion, standard terms called Incoterms have been
derived & published by the International Chamber of Commerce (ICC) to make the terms of sale clear and precise.
Incoterms provide a set of international rules for the interpretation of the most commonly used trade terms between buyer
and seller, in foreign trade.
These Terms describe in detail the rights, responsibilities, obligations and costs of the sellers and buyers in international
trade, with particular reference to the transportation of goods. Some terms were designed with sea vessels in mind while
others were designed to be applicable to all modes.
The basic specifics that these terms address are
1. Cost
Who is responsible for the expenses involved in a shipment at a given point in a shipment's journey
2. Control
Who owns the goods at a given point in the journey
3. Liability
Who is responsible for paying damage to goods at a given point in a shipment transit
Types of Incoterms
There are 13 different terms divided into 4 categories. Each of these terms deals with different situations involving the
movement of goods.
The categories are:
1. E-Terms
Departure Terms where sellers responsibilities are fulfilled when goods are ready to depart from facilities. It has minimum
seller obligation. Here the seller makes the goods available to the buyer at the seller's own premises.
It has only one category EXW (Ex-Works)
(i.) Ex Works - EXW
Ex means from. Work means factory, mill or warehouse, which are the sellers premises. Ex- Works means the seller's only
responsibility is to make the goods available at the seller's premises, ie., the works or factory. The seller is not responsi ble
for loading the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears the full costs and risk
involved in bringing the goods from there to the desired destination. The buyer is responsible for all transportation costs,
duties, and insurance, and accepts risk of loss of goods immediately after the goods are purchased and placed outside the
factory door. Ex-Works represents the minimum obligation of the seller. Some manufacturers may use the term Ex Factory,
which means the same as Ex Works. The term is applicable to all modes of transport including multimodal .
2. F-Terms
Terms beginning with F refer to shipments where the primary cost of shipping is not paid for by the seller. Seller has to
deliver goods to a carrier appointed by buyer.
The main characteristics of the F terms are that the main carriage is not paid by the seller.
The terms in this category include:
(i.) Free Carrier - FCA
The Seller fulfills his/her obligations when the goods are delivered to carrier at a named point specified by buyer. The risk of
loss or damage to the goods is transferred from seller to buyer at that time. If the place chosen is the seller's place of
business, the seller must load the goods onto the transport vehicle; otherwise, the buyer is responsible for the main
carriage/freight, cargo insurance and other costs and risks. Has been designed to meet the requirements of multi-modal
transport such as containers, traffic by trailers and ferries.
(ii.) Free Alongside - FAS
Seller transports the goods from his place of business, clears goods for export and places goods alongside ship on quay.
The risk of loss then shifts to the buyer. Buyer is responsible for loading the goods onto the vessel and for paying all costs
involved in shipping the goods to the final destination. Applicable only to sea and inland waterway.
(iii.) Free on Board - FOB
FOB states that the seller is responsible for delivering the goods from his place of business and loading them onto the
vessel at the port of shipment named in the sales agreement as well as clearing customs in the country of export. As soon
as the goods cross the ship's threshold the risk of loss is transferred to the buyer. The buyer is responsible for all
transportation and insurance costs from that point, and also for clearing customs in the country of import. The seller pays t he
cost of loading the goods. Applicable only to sea and inland waterway transport.
3. C-Terms
Terms beginning with C deal with the shipments where the seller pays for shipping, but without assuming the risk of loss or
damage to the goods or additional costs due to events occurring after shipment and dispatch. The seller is also responsible
for export customs clearance. Seller is not liable for risk/loss/damage to the goods during shipping.
For the C terms, the main carriage is paid by the seller.
These terms include:
(i.) Cost and Freight - CFR
Requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or
damage to the goods as well as any cost increases are transferred to the buyer when the good pass the ship's rail in the port
of shipment. Insurance is the buyer's responsibility. The buyer is responsible for the import customs clearance and other
costs and risks.Applicable only to sea and inland waterway
(ii.) Cost, Insurance & Freight - CIF
Seller is responsible for delivering the goods onto the vessel of transport and clearing customs in the country of export. He is
also responsible for purchasing insurance with the buyer named as the beneficiary.Risk of loss transfers to buyer as the
goods cross the ship's rail. If these goods are damaged or stolen during international transport, the buyer owns the goods
and must file a claim based on insurance procured by the seller.
Applicable only to sea and inland waterway.
(iii.) Cost Paid To - CPT
Seller clears the goods for export, delivers them to the carrier and is responsible for carriage costs to the named place of
destination. Risk of loss or damage to the goods transfers to the buyer when the goods have been delivered to the custody
of the final carrier. Applicable to all modes of transport.
(iv.) Carriage and Insurance paid - CIP
Delivery of goods and cargo insurance to the named place of destination at seller's expense. Applicable to all modes of
transport.
3. D-Terms
Shipper/seller responsibility ends when goods arrive at some specific point. Seller has to bear all costs and risks needed to
bring the goods to the country of destination. These are essentially arrival/delivery terms.
The D terms are:
(i.) Delivered at frontier - DAF
The seller is responsible for all costs involved in delivering the goods to the named point and place at the frontier. The
sellers obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country
named in the sales contract. Risk of loss transfers from seller to buyer at the frontier. The buyer pays the cost and bears the
risk of unloading the goods, clearing customs and transporting the goods to the final destination. This term is applicable to
all modes of transport.
(ii.) Delivered Ex-Ship - DES
The seller makes the goods available to the buyer on board the ship at the destination named in the sales contract. Seller is
responsible for all costs and risks involved in delivering the goods to a named port of destination. Upon arrival, the goods
are made available to buyer on board the vessel. The buyer must pay the cost of unloading the goods and any customs
duties. Applicable only to sea and inland waterway transport.
(iii.) Delivered Ex-Quay - DEQ
The seller makes the goods available to the buyer on the quay or wharf at the destination named in the sales contract. Seller
bears all costs and risks in transporting to the wharf (quay) at the port of destination. The buyer must pay duties, clear
customs, and pay cost/bear risk from that point onward. Applicable only to sea and inland waterway transport.
(iv.) Delivery Duty Unpaid - DDU
The seller is responsible for all costs involved in delivering the goods to a named place of destination where the goods are
placed at the disposal of the buyer. The buyer assumes risks of loss at that point and must clear customs, pay duties and
provide inland transportation and insurance to the final destination. The term is applicable to all modes of transport.
(v.) Delivery Duty Paid - DDP
Seller bears costs up to named point of destination including customs clearance at the country of import. Under DDP, the
seller literally provides door to door delivery, including customs clearance in the port of export and the port of destination.
Thus the seller bears the entire risk of loss until goods are delivered to the buyer's premises. The term is applicable to all
modes of transport. Here, the seller is responsible for most of the expenses, which include the cargo insurance,import
customs clearance, and payment of customs duties and taxes at the buyer's end, and the delivery of goods to the final point
of destination, which is often the project site or buyer's premises. The seller may opt not to insure the goods at his/her own
risk.
Incoterms Classification Based on Transporation
1. Rules for Any Mode(s) of Transport
(i.) EXW Ex Works (named place of delivery)
(ii.) FCA Free Carrier (named place of delivery)
(iii.) CPT - Carriage Paid To (named place of destination)
(iv.) CIP Carriage and Insurance Paid to (named place of destination)
(v.) DAT Delivered at Terminal (named terminal at port or place of destination)
(vi.) DAP Delivered at Place (named place of destination)
(vii.) DDP Delivered Duty Paid (named place of destination)
2. Rules for Sea and Inland Waterway Transport
(i.) FAS Free Alongside Ship (named port of shipment)
(ii.) FOB Free on Board (named port of shipment)
(iii.) CFR Cost and Freight (named port of destination)
(iv.) CIF Cost, Insurance and Freight (named port of destination)

Route Determination In Sales Order
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Added by Rajesh Banka, last edited by Jyoti Prakash on Sep 16, 2011 (view change)
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Determination
Route is determined automatically in the sales order based on:
1. Departure zone or country of the delivering plant.
2. Destination zone or country of the Ship to Party.
3. Shipping condition from the customer master.
4. Transportation group from the material master.
5. Weight Group.
Configuration
Follow this:
Step: 1 - Define Modes of Transport
Path: SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Modes
of Transport.
Step: 2 - Define Shipping Types
Path: Under the Same Menu path - 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: 3 - Define Transportation Connection Point
Path: Under the Same Menu path - Define Transportation Connection Point.
Step: 4 - Define Routes and Stages.
Path: Under the Same Menu path - Define Routes and Stages.
Select the New Entries and Enter the Details
Then Select the Routes stages and define
Step: 5 - Maintain Stages for all Routes.
Path: Under the Same Menu path - Maintain Stages for all Routes.
ROUTE DETERMINATION
Step: 6 - Define Transportation Zone
Path: SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Route Determination - Define
Transportation Zone.
Step: 7 - Maintain County and Transportation Zone for Shipping Point.
Path: Under the Same Menu path - Maintain County and Transportation Zone for Shipping Point.
Select the Shipping point and enter the Country and Transportation Zone
Step: 8 - Define Transportation Groups.
Path: Under the Same Menu path - Define Transportation Groups
Step: 9 - Maintain Route Determination
Path: Under the Same Menu path - Maintain Route Determination.
Go to Customer master data.
In Address of General data. Enter the Transportation Zone id. and save
You will get the route.
The system takes into account the following 4 conditions for determining the Route
a.) The country and the Departure Zone of the shipping point
b.) Shipping Conditions agreed in the sales document type or with the sold to party
c.) Transportation Group assigned to the material
d.) The country & Transportation Zone of the ship to party (in CMR)
Route can be manually overwritten during a sales order processing. You can re-determine the route in the outbound delivery
based on weight (weight group) provided it is allowed in the configuration of the delivery type.
Scheduling takes into account the following times -
a.) Transit Time
b.) Loading Time
c.) Pick/Pack Time
d.) Transportation Lead/Planning Time.
The loading time and pick/pack time come from the shipping point whereas the transit time and transportation lead
time come from the route.
The system performs backward scheduling first to confirm the required quantity checking the material availability on the
material availability date. If the material availability date or the transportation planning date falls before the order date, the
system automatically carries out forward scheduling and will propose a future date. A delivery type can be customized to
carry out rescheduling if required during the delivery processing.