SD Shipment Costs

Shipment Costs…?

A shipment can have costs which represent the charges

of the Transportation Service Provider (TSP, carrier),
possible handling charges, surcharges such as fuel, and
other accessorial or direct transportation costs.
The Shipment Costs are calculated for any given
shipment
 Purpose

Shipping fees are based upon the cost of processing and

shipping the Customer order

This includes the cost of labor, supplies, facilities and equipment

necessary to fulfill your order

It becomes necessary that all these costs, including the Freights

and other Surcharges are -

 Settled to the Transporter

 Charged to the customer
 Use

Shipment cost functionality is used primarily for the following;

 Calculating shipment costs

 Settling shipment costs to the Transporter
 Charging the Shipment Costs to the Customer

Using this functionality, it becomes possible for the transportation

planner to estimate the Freight cost before they are incurred. This
helps in making important decisions in transportation planning.
 Challenges

 How to calculate shipment costs for a specific shipment

 How to split shipment costs if there is more than one
customer for a shipment
 How to settle the shipment costs with transport service
provider
 How to charge shipment costs to a customer
 Internal settlement of shipment costs between group
companies.. is it possible ?
 Process Steps

The Activities in Shipment Cost Processing can be broadly broken

down in the following headers:

Shipment Cost Document Creation

Transmission of Shipment Costs to Accounting

Settlement of Shipment Cost with Service Provider

Billing The Shipment costs to the customer.

Process Flow
Sales Order Shipment Cost
Creation Document
Creation.
Delivery and
Shipment Completion

Settlement

Service Entry Sheet

Billing Document Created.
Creation

Logistics Invoice
Verification
Shipment Cost Document
Structure:
Shipment cost header:
The shipment cost header contains general information on the entire
document. You can view status, reference and administration
information. The status information is the cumulative status that is
calculated from the individual item

Shipment cost item:

The items refer either to a shipment header or a shipment stage. The
items contain general data for shipment costing and settlement, such
as service agent, pricing date and settlement date, tax amount and tax
basis as well as organizational data such as company code, plant and
purchasing organization

There is an individual status at item level for each of the shipment

costing, account assignment and forwarding to FI functions.
Shipment Cost Document (continued)

Shipment cost sub-items:

Calculation of the shipment costs is carried out at the level of the
shipment cost sub-items and this is also the level at which the result
of the calculation is stored. Depending upon the calculation basis that
was determined, this can involve single delivery items, deliveries,
shipping units or the entire shipment cost item. Different information is
received depending on the type of sub-item involved. The delivery
item, for example, has no information on the handling units.
Shipment Cost Calculation

In Addition to Standard Pricing, The following functions are

possible during Shipment Cost Calculation

 Pricing procedure determination : This is Done Differently as

compared to Standard Pricing
 Determination of calculation basis : It is Possible to Set the
Base Upon which
 Freight cost determination/Shipment cost simulation
 Shipment comparisons
 Determination of geographical factors
 Pricing date and settlement date determination
 Tax determination
Pricing Procedure Determination

If the shipment is marked as relevant for shipment costing and when

the shipment attains the requisite status , the system determines the
appropriate shipment cost pricing procedure based on the
transportation planning point,shipment cost item category,shipping
type and the forwarding agent.

The pricing procedure contains all condition types that are to be used
for shipment costing and it defines the sequence in which calculation
is carried out in the shipment document.
Freight Cost Estimate

This function includes:

• Calculation and display of shipment costs
• Display of shipment cost document
• Display of processing log
• Calculation of maximum price that should not be exceeded by
the forwarding agent(termed as Transportation tendering)

Using this functionality, it is possible to execute a Freight cost

Estimate during Shipment Processing. It gives an Idea
regarding what shipment costs might be incurred by the
Shipment. Using this, the transportation Planner can change
data such as forwarding agent, mode of transport, shipping
conditions etc, and calculate the shipment costs till it falls
under the allowed expenditure limit.
Calculation Base Determination
Depending on the calculation base defined in each condition type
of the pricing procedure , the shipment Cost sub-items are
determined.
Eg: If calculation basis is delivery , the system creates shipment
cost sub items for all the delivery headers(i.e no delivery item or
handling unit related information) is considered.

The other calculation bases are :

• Delivery item
• Handling unit
• Shipment cost item
• All (i.e if you want to consider the deliveries as well as the
handling units as base for calculation. )
• Handling units including delivery item
Shipment Comparisons

If it’s required to compare two different shipment costs after

calculation and then determine the most/least favourable of the
two , the condition exclusion functionality of SAP can be used.

The system will automatically dectivate the condition type which

is not required (Depending on the customising settings and from
results of comparison)
Determination Of Geographical
Factors

Geographical factors like distance and location or tariff zone influence

the shipment costs including taxes.

The distance can be used as a scale for calculating the shipment

cost. It can either be automatically determined using scale basis or
from the routes of the shipment header or the stages, or can be
manually entered in the shipment.

The tariff zone can be automatically determined based on the postal

code area of a country.Besides it’s possible to maintain the condition
records based on adress data such as postal code, transportation
zone, country, region etc.
Date Determination

The pricing date and the settlement date can be customized to be

determined automatically

Date rules can be defined in customising indicating the possible

dates that can be proposed automatically during the shipment
cost document processing (depending on the shipment cost item
category)

The pricing and settlement date can be maintained manually in the

shipment cost document header.
Tax Determination

Inorder to determine the taxes during shipment cost determination,

the system determines the destination and departure countries
based on the following rules:

Departure country:

 The system checks if the departure country of all the deliveries

in the shipment is the same, if yes, then it uses that as the
departure tax country.
 Else if the shipment cost item refers to the shipment
header,then the departure country from the first shipment leg
is used as the departure tax country else if shipment cost item
refers to the shipment stage(i.e. either a shipment leg or a load
transfer point or border crossing point), then the departure
country of that stage is used as the tax departure country.
Tax Determination (continued)
Destination country:

 The system checks if the destination country of all the

deliveries in the shipment is the same, if yes, then it uses that
as the destination tax country

 Else if the shipment cost item refers to the shipment

header,then the receiving country of the last shipment leg is
used as the destination tax country else if shipment cost item
refers to a shipment leg, then the receiving country of that leg
is used as the tax country but if the shipment cost item refers to
the load transfer point or border crossing point then the
receiving country of the shipment stage is used as the
destination tax country
Prerequisites
 The shipment type for which the shipment costs need to be
calculated should be marked as relevant for shipment
costing.

 The appropriate shipment cost type should be assigned to

the shipment type.

 The shipment cost type contains control elements that allow

different processing options for shipment cost documents.
These control elements include the overall status that the
shipment must have before the shipment cost document can
be created.
Configuration Steps
1. Define Date Rules
2. Define Item Category
3. Define Shipment Cost Type
4. Assign Shipment Cost Document Type to Item Categories
5. Assign Shipment Cost Type to Shipment Type
6. Define Shipment Cost Relevance for Shipment Types
7. Set up Pricing for Shipment Cost Calculation.
8. Assign Purchasing Data
9. Set up Automatic G/L Account Determination
Define Date Rules
Date rules determine which dates are chosen for determining the
pricing date and the settlement date and the sequence in which they
are accessed.

IMG Path : Logistics Execution > Transportation > Shipment Costs > Basic
Functions > Define Date Rules

Create a Date Rule

here By specifying
an Alphanumeric
Key

Define the Dates for

the Date Rule, in the
required Sequence
Define Item Category
The Item Category Governs various control aspects of the Costing Line Item

IMG Path : Logistics Execution > Transportation > Shipment Costs >
Shipment Cost Document > Shipment Cost Types and Item
Categories

Date Rule For

Pricing Date
Determination

Date Rule For

Settlement Date
Determination
Define Shipment Cost Type

IMG Path : Logistics Execution > Transportation > Shipment Costs >
Shipment Cost Document > Shipment Cost Types and Item
Categories

The Status the shipment Must attain to

enable shipment cost document
creation is defined here
Assign Shipment Cost Types
and Item Categories
Defines which Item categories can be used in a particular Cost Type
IMG Path : Logistics Execution > Transportation > Shipment Costs >
Shipment Cost Document > Shipment Cost Types and Item
Categories
Assign Shipment Cost Type to
Shipment Type
Defines the Cost Types that can be created against particular Shipment
Types

IMG Path : Logistics Execution > Transportation > Shipment Costs >
Shipment Cost Document >Shipment Cost Relevance and Default
for Shipment Cost Type
Define Shipment Cost
Relevance for Shipment Types
Defines if the Particular Cost type is Relevant for Shipment Costing

IMG Path : Logistics Execution > Transportation > Shipment Costs >
Shipment Cost Document >Shipment Cost Relevance and Default
for Shipment Cost Type
Set Up Pricing

Pricing for Shipment Cost calculation

Pricing Configuration Includes the following Steps
1. Define Condition table ( Similar to Standard Pricing )
2. Define Access Sequence ( Similar to Standard Pricing )
3. Define Condition Type ( Similar to Standard Pricing )
4. Define Pricing Procedure ( Similar to Standard Pricing )
5. Assign Pricing procedure ( This is different from Standard
Pricing. The different steps of Pricing Procedure
Assignment have been Illustrated in the following Slides )
Shipment Pricing Procedure
IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing >
Pricing Control > Define And Assign Pricing Procedures > Define
Pricing Procedure
Pricing Procedure Determination
IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing >
Pricing Control > Define And Assign Pricing Procedures > Define
and assign shipping type procedure group

Define Shipping Type Procedure Group

Assign Shipping Type Procedure Group To

Shipping Type
Pricing Procedure Determination
IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing >
Pricing Control > Define And Assign Pricing Procedures > Define
and assign item procedure group

Define Item Procedure Group

Assign Item Procedure Group To Item

Category
Pricing Procedure Determination
IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing >
Pricing Control > Define And Assign Pricing Procedures > Define
service agent procedure group

Define Service Agent Procedure Group

Pricing Procedure Determination
Assign Service Agent Procedure Group to Service Agent ( Control Data )
Transaction Code : XK01 ( Create Vendor ) / XK02 ( Change Vendor )

Enter Service
Agent
procedure
Group
Pricing Procedure Determination
For Each transportation Planning Point, Pricing Procedure is assigned
against the combination of
• Shipping Procedure Group
• Item Procedure Group
• Service Agent Procedure Group

IMG Path : Logistics Execution > Transportation > Shipment Costs > Pricing >
Pricing Control > Define And Assign Pricing Procedures > Define
service agent procedure group
Settlement
Assign Purchasing Data : Each Pair of Transportation Planning Point is
assigned to a combination of
• Purchasing Organization
• Purchasing Group
• Plant

IMG Path : Logistics Execution > Transportation > Shipment Costs >
Settlement > Assign Purchasing Data
G/L Account Determination
This is done to ensure Posting of the Shipment cost to correct G/L
Accounts.

IMG Path : Logistics Execution > Transportation > Shipment Costs >
Settlement > Automatic G/L Account Determination
Shipment Cost Processing

Master Data
Condition Record Creation
Maintain the condition records for
1. Enter Condition Type the condition types which will
determine the various costs and
discounts applicable during the
shipment or shipment stages

Transaction Code : TK11

2. Choose Key Combination ( If Access sequence contains multiple tables )

3. Create Condition Record and Save

Shipment Cost Processing

Transaction Processing
Prerequisite to Shipment Cost
Document Creation

Shipment end status

should be set in the
Shipment to enable
shipment cost
calculation
Shipment Cost Document
The Shipment Cost Document is created against a Transportation
document after shipment completion.

Enter Shipment Number

here

Enter Shipment Cost Type

here

Transaction Code : VI01

Shipment Cost Document (continued)
Shipment Cost Document will be created

Double Click to View the

Item and sub-item Details
Shipment Cost Document (continued)

Click here to View

the Price Details

Item Details

Sub-Item Details
Shipment Cost Document (continued)

Net Shipment Cost

Amount

Condition Type Net amount of Taxes

Shipment Cost Document (continued)

Check this check box and

save the document to Create
Service Entry Sheet
Logistics Invoice Verification
After creation of the service entry sheet, Logistics Invoice Verification
is done to Post the amount to Financial accounting for Settlement to
Service agent.

Choose
Service Entry
Sheet Enter Service
entry sheet
number

Transaction Code : MIRO

Invoicing The Customer
After creation of the Shipment cost document, the Billing document is
created. The Shipment cost amount is charged from the customer in the
Bill. The Conditions tab of the Billing document Line item has been shown
below.

Basic
Freight
Condition
from
Shipment
Cost

Transaction Code : VF01

Shipment Costs
Use the following Transaction codes for viewing the settings that are
required for Shipment Cost Processing.

T_60 Define Date Rules

T_56 Define and Assign Shipment Cost Types and Item Categories
T_57 Shipment Cost Relevance and Default for Shipment Cost Type
T_05 Display pricing Condition Tables fro Shipment Costing
T_06 Define Condition Types for Shipment Costing
T_07 Define Access Sequence for Shipment Costing
T_72 Define and assign shipping type procedure group
T_71 Define and assign item procedure group
T_70 Define service agent procedure group
T_08 Maintain pricing procedure for Shipment Costing
T_73 Define pricing procedure determination for shipment costs
Shipment Costs
Use the following Transaction codes for viewing the settings that are
required for Shipment Cost Processing.

T_53 Assign Purchasing Data

OBYC Automatic Account Assignment
Shipment Costs
Use the following Transaction codes for Maintaining master Data for
Shipment Cost Processing

TK11 Maintain Condition Records

Shipment Costs
Use the following Transaction codes for Creation of Shipment Cost
Document and Subsequent Processing

VT03N View Shipment Document

VI01 Create Shipment Cost Document
ME23N View Purchase Order
MIRO Logistics Invoice Verification
VF01 Create Billing Document
Additional Info

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