difference between shipment and delivery?

[Former Member]

Hello

Can somebody tell me what is the difference between shipment and delivery in SAP terms and how they are linked?

Thanks

[Former Member · Accepted solution]

Hi

Sales process (Order-to-cash) comprises of multiple phases or process steps.

They are,

- Presales activities

- Salesorder processing

- Shipping (Delivery)

- Billing

- Payment

So, Shipping (which normally we call Delivery) is one process step in Sales process (Order-to-cash).

During this process step (Shipping or Delivery), we perform several sub-processes like

- Creation of Delivery doc (mandatory)

- Picking (if required/ optional)

- Packing (if required/ optional)

- Transportation planning, shipment (if required/ optional)

- Post goods issue (mandatory)

That means, Delivery is one of the process step in Sales process (Order-to-cash) and "Shipment" is one of the sub-functions in the Delivery or Shipping process step.

This Shipment function is an optional function.

From one Shipping point, When you send multiple deliveries in one truck (means of transport) and the truck is to deliver goods to several Ship-to-parties along a particular route, then this function is called Shipment function.

The document created for this is called Shipment document and cost involved is called Shipment cost which is also optional.

Normally, Shipment is created before PGI.

During Shipment you can pack the deliveries in bigger packing material that means packing function is possible in Shipment.

I hope, it is clear.

[Former Member]

In SD, goods movements takes place by means of deliveries. These are created against a sales order (for a sale) or against a PO / STO (for stock transfers).

Shipments are not mandatory for the cycle to be completed. The shipments are created against deliveries (a combination of deliveries can create a shipment) and are used for transportation functions.

Regards,

Aroop

[Former Member]

Delivery: Create a order for deliver some material which includes identify the material (Storage location or warehouse), Picking, Packing and goods issue from storage location. All these process are done in the company's plant.

Shipment: Its nothing but transportation... that is after goods issued from Plant this will happen. Plant to Customer place... by some vehicle...

Muthu