SD2003 - SD Transportation &

Shipment v 1.0

India SAP CoE, Slide 1

SD Transportation & Shipment
1 PrepareMe

2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 2
SD Transportation & Shipment
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2 TellMe

3 ShowMe

4 LetMe

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India SAP CoE, Slide 3
Purpose

Transportation and Shipment are the essential elements in

the logistics chain. It affects both incoming and outgoing
goods.

Effective transportation planning, ensure that shipments are

dispatched without delay and arrive on schedule.

India SAP CoE, Slide 4

Use
The transportation function can handle planning and processing of
outbound shipments (also inbound shipments) , thus, control and
monitor the entire process from warehouse to the customer’s site.

In shipping processing, all delivery procedure decisions can be made

at the start of the process by

1. Taking into account general business agreements with your customer

2. Recording special material requests
3. Defining shipping conditions in the sales order

The result is an efficient and largely automatic shipping process in

which manual changes are only necessary under certain
circumstances.

India SAP CoE, Slide 5

Challenges

Delivering on customer commitments, are increasingly critical to

revenue, profitability and customer loyalty, for the transportation and
logistics providers. This is especially true in environments where
competition is intense, costs are rising and margins are dwindling. 

By deploying workforce management technology such as

sophisticated dispatch, scheduling, mobile, and GPS solutions,
implementing ERP packages, leading companies around the world
are dramatically improving service capabilities, competitive
differentiation and corporate performance.    

India SAP CoE, Slide 6

SD Transportation & Shipment
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2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 7
Transportation Process Overview
Sales Order

.
Outbound Delivery Create Output
of
Delivery List

Transfer Order
Confirm
Transfer Order

Packing Station TRANSPORTATION

PROCESS

Create Output
Shipment for
packing List

Post Goods Issue

Billing Document

India SAP CoE, Slide 8

Transportation Planning Point
• Transportation planning point consists of 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 to a company code, but

independent of other organizational units.

India SAP CoE, Slide 9

Prerequisites for Transportation
For a delivery to be relevant for transportation , the pre-requisites are as
follows:

 The delivery type must be flagged as relevant for transportation in

Customizing.

 All the Outbound deliveries must contain a route.

 The routes of the deliveries must be flagged as relevant for

transportation in Customizing.

 The transportation blocking reason in the delivery header must be

blank.

 The transportation planning status in the delivery is set to 'A'.

India SAP CoE, Slide 10

Shipping Process Overview
Shipping
Shipping relevant
relevant functions
functions
Shipping Point
Shipping
Shipping Point Determination
Route
Route Determination Goods Monitoring Shipping due date
Scheduling  Issue Creating the Delivery

Packing
Packing
Shipping
Shipping
Document
Document
Picking
Picking

Shipping processing include:

.
 Monitoring of deadlines for reference documents due for shipping (eg, customer orders and PO)
 Creating and processing outbound deliveries
 Monitoring goods availability
 Monitoring capacity situation in the warehouse
 Support for picking (with link to the Warehouse Management System)
 Packing the delivery
 Printing and transmitting shipping documents
 Processing goods issue
 Controlling through overviews of:
- deliveries currently in process
- activities still to be performed
- possible bottlenecks

India SAP CoE, Slide 11

Shipment Types
 Individual Shipment
An individual shipment can have more than one delivery , one point of departure , one destination and
only one mode of transport

Shipping
Shipping point
point Customer
Customer
Mumbai
Mumbai Kolkata
Kolkata

• Collective Shipment
A collective shipment can have more than one delivery ,multiple points of departure , many destinations
but only one mode of transport

Delivery
Delivery 11 Delivery
Delivery 11
Delivery
Delivery 22

Shipping
Shipping point
point Customer
Customer Customer
Customer
Mumbai
Mumbai Nagpur
Nagpur Kolkata
Kolkata

 Transportation chain
A transportation chain can have more than one delivery ,multiple points of departure , many
destinations and multiple modes of transport

Port
Port of
of Destination
Destination Customer
Customer
Shipping
Shipping point
point Port
Port of
of Departure
Departure Chennai Chennai
Chennai Chennai
Nagpur
Nagpur Mumbai
Mumbai

India SAP CoE, Slide 12

Shipment Document
The shipping document is the central element of transportation planning & shipment
completion. It contains all the information necessary for carrying out transportation.
We can use shipment documents to:
 Combine deliveries into one inbound or outbound shipment
 Specify shipment stages
 Legs
 Border crossing points
 Load transfer points
 Assign goods to handling units
 Assign service agents
 Specify planned transportation deadlines
 Record actual transportation deadlines
 Specify output required for transportation (such as shipping papers or EDI
messages)
 Define transport-relevant texts

India SAP CoE, Slide 13

Freight Code Determination
Determining the freight code is carried out in two steps:
Step 1
• Automatic freight code determination uses the following criteria:
• Country of origin
• Shipping type (truck, rail, etc.)
• Forwarding agent (forwarding agent freight group in the vendor
master)
If an external transportation planning system is being used, then the
freight code set can also be defined by the route.
Step 2
• Automatic freight code determination uses the following criteria:
• Freight code set
• Material (material freight group in the material master)
• This allows you to determine the freight codes of all materials in a
shipment.

India SAP CoE, Slide 14

Creation of Shipments
Shipments can be created by choosing deliveries according to certain selection criteria
and then assign them to the new shipment.

Collective shipment are made to move goods from one or more points of departure to
one or more destinations. Separate document types deal with inbound and outbound
shipments.

You can use shipment documents to: Delivery #

----Delivery
---- #
--------
---- ---- #
Delivery
 Combine deliveries into one inbound or outbound shipment --------
--------
---- ---- #
Delivery
--------
--------
 Specify shipment stages ----
--------
----
----
---- ---- #
Delivery
----
---- ---- ----
----
Legs --------
------------
----
--------
--------
Border crossing points ---- ----
Load transfer points
 Assign goods to handling units
 Assign service agents
 Specify planned transportation deadlines
 Record actual transportation deadlines
Define transport-relevant texts
 Specify output required for transportation (such as shipping papers or EDI messages)

India SAP CoE, Slide 15

Automatic Leg Determination
Importation characteristics for Automatic leg determination are :

Point of departure
Destination point
Service agent
Shipping type
Leg indicator
Shipment cost relevance for the leg.

Depending on the shipment type, the leg will be automatically

determined as soon as overall status of shipment changes to
“Planning completed”

India SAP CoE, Slide 16

Shipment Stages & Partners For Shipment Stages
Stages contain information about the geographical factors for a shipment. Shipment
stages can include:

Legs
A beginning point and end point is defined. For example, you can define main, preliminary,
and subsequent legs.

Load transfer points

The point where a shipment is unloaded from one means of transport and loaded onto
another.
Stages of Shipment Border crossing point
A B
Border crossing points Partner: Forwarding agent
The point where a shipment crosses the border.
Border crossing point
A
Partner: Customs Broker

In a leg, the partner is the forwarding agent

at a load transfer point, it is the load transfer service Border crossing point
A
provider, Partner: Forwarding agent
and at a border crossing point, it is the customs agent.

India SAP CoE, Slide 17

Packing for Shipments
. Outbound Delivery Carton
Carton 11

-------- Carton
Carton 22
Pallet 1
--------
-------- Carton
Carton 33
Container 1
-------- Pallet 2
Carton
Carton 44

Packing is the process of assigning delivery items to shipping materials.

This produces shipping units, which can then have more shipping materials
added for packing.

In the standard system, two output types are set up for printing:
- Packing list (at delivery level)
- Shipping label (at shipping unit level)

India SAP CoE, Slide 18

Text Determination For Shipment
Text Object belongs to ?

Document
-----
Customer -----
-----

The text determination procedures contain all the text types that can be maintained in
a text object .
The attributes of the text determination procedure vary for customer or document text
objects.

We can determine whether the text should be copied or referenced. For document text
determination procedures you we also specify whether a

1. Text should be obligatory (incompletion log)

2. Text should be determined automatically
3. Text should be displayed in the document in the text field (popup)

India SAP CoE, Slide 19

Output Determination For Shipments
Output is a means of communication for exchanging information between partners and systems.
We can set requirements to determine whether an output should be created, who will receive it,
and which transmission medium should be used. The information that influences output
determination is stored as master data, in the form of condition records.

Output
Output Packing
Packing List
PL00

Material Tag
WA00
Transmission
Transmission Media
Media Delivery
Delivery Note
Note

Example of Output Shipping Order

Outbound Shipping types
types in
in Shipping
Shipping SA00
Notification
Notification LAVA
LAVA
External
Telex
Fright
Fright List
List
Quality Certificate
LL00
LL00 LQCA, LQCB

Printer
SAP office
Shipping Label
0001
0001
EDI

India SAP CoE, Slide 20

SD Transportation & Shipment
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2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 21
Menu Path For Shipping & Transportation -
Configuration
SPRO  SAP Reference IMG Logistic Execution Shipping
SPRO  SAP Reference IMG Logistic Execution Transportation

India SAP CoE, Slide 22

Shipping Point & Goods Receiving Point
Determination - Configuration
IMG Logistic Execution Shipping Shipping Point and Goods Receiving Point Determination

Define Shipping Conditions Assign Shipping Point

Define Loading Groups

Shipping condition is a strategy for delivery, where, the system proposes the fastest shipping point and
route.

India SAP CoE, Slide 23

Define Rule for Determination of Shipping
Point - Configuration
IMG Logistic Execution Shipping  Basic Shipping Functions 
Define Rule for Determination of Shipping Point
Assign Shipping Points

Shipping Point is determined by Shipping Conditions, Loading Group and Plant . Delivery Type should be
specified with Shipping point Rule

India SAP CoE, Slide 24

Define Routes - Configuration
IMG Logistic Execution Shipping Basic Shipping Functions  Routes  Define Routes

Define Modes of Transport Define Shipping Types

Mode of Transport is a medium, by means by which cargo is transported, such as rail, road, air, or ship.
A mode of transport used for goods entering a customs territory.

India SAP CoE, Slide 25

Transportation Connection Points -
Configuration
IMG Logistic Execution Shipping Basic Shipping Functions  Routes  Define Routes

Define Routes and Stages

A connection point can be one of the following:

 an airport
 a border crossing
 a railway station

India SAP CoE, Slide 26

Text Determination - Configuration
IMG Logistic Execution Shipping Basic Shipping Functions  Text Control

Select a text object and define the rules for text determination
for this object.

Define the permitted Text Types for every text object.

Define the Access Sequences.

Group the text types together in Text Determination procedure.

The System then proposes the text types from the procedure when we maintain a customer master record
or a sales & distribution document.
India SAP CoE, Slide 27
Route Determination – Configuration
IMG Logistic Execution Shipping Basic Shipping Functions  Routes

Define Transportation Zones Define Transportation Groups

Maintain Route Determination

India SAP CoE, Slide 28

Shipments - Configuration
IMG Logistic Execution Transportation Basic Transportation Functions  Shipments

Maintain Transportation Relevance

India SAP CoE, Slide 29

Define Shipment Types - Configuration
IMG Logistic Execution Transportation 
Basic Transportation Functions  Shipments 
Define Shipment Types

Shipment types contain all the essential

control features for the shipment
document.

Default values, such as selection variant,

weight unit, output type

Transportation processing type, service

level and so on.
Control specifications for the partner,
output and text determination
procedures

India SAP CoE, Slide 30

Maintain Transportation Planning Point
IMG Logistic Execution Transportation 
Basic Transportation Functions  Route 
Define Routes

An organizational unit in Logistics for planning and processing transportation activities.

It organizes the responsibilities in a company according to, shipment type, mode of transport.

Defining Mode of Transportation

India SAP CoE, Slide 31

Defining Shipping Types
IMG Logistic Execution Transportation 
Basic Transportation Functions  Route 
Define Routes  Define Shipping Types

In this activity, you define the shipping types in combination with the mode of
transport.

The shipping types can include the following:

 Truck
 Truck with trailer
 Plane
 Ship

India SAP CoE, Slide 32

Shipment Execution And Monitoring
Logistics Execution  Transportation  Transportation Planning  Lists and Logs
Shipment Processing Monitor.

The Shipment monitor gives an overview, grouped by status, time, and date,
as to how much workload exists. In this way, the transportation planner can
react quickly to situations and also have a complete overview of the overall
status of all shipments.

India SAP CoE, Slide 33

Create Master Data
Create Customer Master data
Logistics  Sales & Distribution  Master Data  Business Partners  Customer  Create 

The customer master is where the goods will be delivered and transport to from
the transportation point of view.

Create Vendor Master Data

Logistics  Material Management  Purchasing  Master Data  Vendor  Central  Create

Vendor master is the business partner who may provide transportation service
and is the business partner with whom the final transportation cost will be settled
in G82.

Creating Transportation Condition Records

Logistics  Logistic Execution Master data  Transportation Shipment cost  Prices 

Transportation condition records are the combination of the forwarding agency and
condition type. Normally, it stipulates the detailed pricing information, such as how much it
will cost for this forwarding agency to transport a certain weight of the goods.

India SAP CoE, Slide 34

Create Delivery Order

India SAP CoE, Slide 35

Create Transfer Order
A transfer order is an instruction to move materials from a source storage bin to a destination storage bin within
a warehouse complex.

Transfer orders include the following information:

 Material number
 Quantity to be moved
 Source and destination storage bin

India SAP CoE, Slide 36

Confirm Transfer Order
By confirming the transfer order, we verify the quantities removed from the warehouse.

During confirmation, it is possible to report differences in quantities. We can record the cause for
the difference in the system by entering a difference indicator.

As soon as confirmation is complete, the status of the WM activities is set to 'C', regardless of the
confirmed quantity. Only the pick quantity affects the picking status.

India SAP CoE, Slide 37

Create Packing For Shipments

India SAP CoE, Slide 38

Create Output For Packing List

India SAP CoE, Slide 39

Create Loading Group Via
Delivery Monitor

India SAP CoE, Slide 40

Create Shipment Document

India SAP CoE, Slide 41

Add Deliveries To The Shipment
Add delivery
/deliveries

India SAP CoE, Slide 42

Automatic Leg Determination

Depending on the shipment type, the leg will be automatically determined as soon
as overall status of shipment changes to “Planning completed”
The deliveries need to be assigned to the stages (Default assignment is in sort
order of the deliveries). This sorting can be manually changed.

India SAP CoE, Slide 43

Post Goods Issue For Shipments
Choose Logistics Execution Outbound Process  Goods Issue for Outbound Delivery 
Post Goods Issue  Collective Processing Via Outbound Delivery Monitor.

We can post goods issue for an entire shipment.

India SAP CoE, Slide 44

SD Transportation & Shipment
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2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 45
LetMe
Important Transaction Codes

VL01N Create Delivery wrt Sales Order

LT01 Create Transfer Order

LT12 Confirm Transfer Order

HUPAST Picking & Packing

VL06L Create Loading Group via Delivery monitor

VT01n Create Shipment

VL02N Post Goods Issue

VL71 Create Delivery output

VL74 Create output for Packing List

India SAP CoE, Slide 46

SD Transportation & Shipment
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2 TellMe

3 ShowMe

4 LetMe

5 HelpMe
India SAP CoE, Slide 47
HelpMe
Billing methods

• Various billing methods are used in the shipping industry, including:

• Freight on Board (FOB): free on board and means that the exporter delivers the
goods at the specified location. Example, FOB Kunming Airport (the exporter
delivers the goods at Kunming airport).
• Cost and Freight (C&F,CFR, CNF): With no insurance. The exporter pays the
ocean shipping/air freight costs to the specified location. Example, C&F Los
Angeles (the exporter pays the ocean shipping/air freight costs to Los Angeles).
• Cost, Insurance, and Freight (CIF): Insurance, and Freight are all paid by the
exporter to the specified location. Example, CIF Los Angeles (the exporter pays
the ocean shipping/air freight costs to Los Angeles including the insurance).

India SAP CoE, Slide 48