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Shipment

Former Member
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Hi

Wat is a shipment process? plz explain with examples

Vinod

Accepted Solutions (0)

Answers (4)

Answers (4)

Manoj_Mahajan78
Active Contributor
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Hi Vinod,

Shipment is an essential element in the logistics chain. It affects both incoming and outgoing goods. Effective shipment planning and processing ensure that shipments are dispatched without delay and arrive on schedule. Transportation costs play an essential role in the calculation of the price of a product. It is important to keep these transportation costs to a minimum so that the price of a product remains competitive. Efficient transportation planning and processing helps to keep these costs down.

Integration

As illustrated in the following graphic, you can use the SAP transportation functions to plan and process:

Incoming shipments in Materials Management based on purchase orders and shipping notifications

Outbound shipments in Sales and Distribution based on sales orders and deliveries

Transportation planning and processing is based on the shipment document. This document facilitates the flow of information from the shipper to the customer and to any service agents who are involved in the business transaction.

Features

The transportation component includes basic transportation processing functions:

Transportation planning and shipment completion

Shipment costs calculation

Shipment costs settlement

Shipment costs calculation for individual customers

Billing of customer freight

Service agent selection

Management of means of transport and utilities

Follow-up and supervision of shipments

Management of shipment costs

These transportation functions can handle planning and processing for both inbound and outbound shipments. You can control and monitor the entire transportation process from the planning stage to goods issue at your shipping point (for outbound shipments) or vendor location (for inbound shipments), through to goods receipt at the customer location or your plant.

Other available functions include: shipment costs calculation and settlement with the service agent, transfer to accounting, credit memo creation and invoice verification.

This documentation describes procedures in outbound shipment processing. Unless specifically stated otherwise, the information here also applies to inbound shipment processing. Differences between the two will be pointed out where necessary.

For information on creating and processing inbound deliveries, see the Confirmations section of the R/3 Library documentation for Purchasing (MM-PUR).

Here is the step by step to configure shipment or transportation planning

Step: 1

Maintain Purchase Organization

Path: Spro—Enterprise Structure—Definition—Materials Management—Maintain Purchasing Organization.

Step: 2

Create Purchasing Group

Path: Spro—Materials Management—Purchasing—Create Purchasing Group.

Step: 3

Maintain Transportation Planning Point to Company Code.

Path: Spro—Enterprise Structure—Definition—Logistics Execution—Maintain Transportation Planning Point

Step: 3A

Assign Transportation planning point to company code.

Step: 4

Assign Purchasing Organization to Company Code.

Path: Spro—Enterprise Structure—Assignment—Materials management—Assign Purchasing Organization to Company Code.

Step: 5

Assign Purchasing Organization to Plant.

Path: Spro—Enterprise Structure—Assignment—Materials management-- Assign Purchasing Organization to Plant

Step: 6

Create Vendor Account Group

Path: Img—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

T-Code: XK01

Step: 9

Define Modes of Transport

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function---Routes—Define Routes—Define Modes of Transport.

Step: 9A

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: 9B

Define Transportation Connection Point

Path: Under the Same Menu path--- Define Transportation Connection Point.

Step: 9C

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: 9D

Maintain Stages for all Routes.

Path: Under the Same Menu path---Maintain Stages for all Routes.

Step: 10

ROUTE DETERMINATION

Define Transportation Zone

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function---Routes—Route Determination—Define Transportation Zone.

Step: 10A

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: 10B

Define Transportation Groups.

Path: Under the Same Menu path---Define Transportation Groups

step: 10D

Maintain Route Determination

Path: Under the Same Menu path--Maintain Route Determination.

Select New Entries and Define the Route Determination.

SHIPMENTS

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function—Shipments

Step: 11

Define Shipment Types

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function—Shipments—Define Shipment Types.

Select the New Entries and define Shipment Type

Step: 12

Go to Customer master data.

In Address of General data. Enter the Transportation Zone id. and save

REWARD IF U FINDS THIS AS HELPFUL....

Regds

MM

Former Member
0 Kudos

Hi Vnod

Shipment is an essential element in the logistics chain. It affects both incoming and outgoing goods. Effective shipment planning and processing ensure that shipments are dispatched without delay and arrive on schedule. Transportation costs play an essential role in the calculation of the price of a product. It is important to keep these transportation costs to a minimum so that the price of a product remains competitive. Efficient transportation planning and processing helps to keep these costs down.

Integration

As illustrated in the following graphic, you can use the SAP transportation functions to plan and process:

Incoming shipments in Materials Management based on purchase orders and shipping notifications

Outbound shipments in Sales and Distribution based on sales orders and deliveries

Transportation planning and processing is based on the shipment document. This document facilitates the flow of information from the shipper to the customer and to any service agents who are involved in the business transaction.

Features

The transportation component includes basic transportation processing functions:

Transportation planning and shipment completion

Shipment costs calculation

Shipment costs settlement

Shipment costs calculation for individual customers

Billing of customer freight

Service agent selection

Management of means of transport and utilities

Follow-up and supervision of shipments

Management of shipment costs

These transportation functions can handle planning and processing for both inbound and outbound shipments. You can control and monitor the entire transportation process from the planning stage to goods issue at your shipping point (for outbound shipments) or vendor location (for inbound shipments), through to goods receipt at the customer location or your plant.

Other available functions include: shipment costs calculation and settlement with the service agent, transfer to accounting, credit memo creation and invoice verification.

This documentation describes procedures in outbound shipment processing. Unless specifically stated otherwise, the information here also applies to inbound shipment processing. Differences between the two will be pointed out where necessary.

For information on creating and processing inbound deliveries, see the Confirmations section of the R/3 Library documentation for Purchasing (MM-PUR).

Here is the step by step to configure shipment or transportation planning

Step: 1

Maintain Purchase Organization

Path: Spro—Enterprise Structure—Definition—Materials Management—Maintain Purchasing Organization.

Step: 2

Create Purchasing Group

Path: Spro—Materials Management—Purchasing—Create Purchasing Group.

Step: 3

Maintain Transportation Planning Point to Company Code.

Path: Spro—Enterprise Structure—Definition—Logistics Execution—Maintain Transportation Planning Point

Step: 3A

Assign Transportation planning point to company code.

Step: 4

Assign Purchasing Organization to Company Code.

Path: Spro—Enterprise Structure—Assignment—Materials management—Assign Purchasing Organization to Company Code.

Step: 5

Assign Purchasing Organization to Plant.

Path: Spro—Enterprise Structure—Assignment—Materials management-- Assign Purchasing Organization to Plant

Step: 6

Create Vendor Account Group

Path: Img—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

T-Code: XK01

Step: 9

Define Modes of Transport

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function---Routes—Define Routes—Define Modes of Transport.

Step: 9A

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: 9B

Define Transportation Connection Point

Path: Under the Same Menu path--- Define Transportation Connection Point.

Step: 9C

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: 9D

Maintain Stages for all Routes.

Path: Under the Same Menu path---Maintain Stages for all Routes.

Step: 10

ROUTE DETERMINATION

Define Transportation Zone

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function---Routes—Route Determination—Define Transportation Zone.

Step: 10A

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: 10B

Define Transportation Groups.

Path: Under the Same Menu path---Define Transportation Groups

step: 10D

Maintain Route Determination

Path: Under the Same Menu path--Maintain Route Determination.

Select New Entries and Define the Route Determination.

SHIPMENTS

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function—Shipments

Step: 11

Define Shipment Types

Path: Spro—Logistics Execution—Transportation—Basic Transportation Function—Shipments—Define Shipment Types.

Select the New Entries and define Shipment Type

Step: 12

Go to Customer master data.

In Address of General data. Enter the Transportation Zone id. and save

U will get the route.

If u want in detail with screen shot, provide ur mail id. i will send it to u.

Reward if it is useful to u.

Former Member
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Can u plz send in my email id laxmikantad@gmail.com

Former Member
0 Kudos

Hi,

Shipment process happens in 2 cases:

1. For a stock transfer i.e. STO

2. For a sales order

When a STO is created, you create delivery for the same, and then you can do goods issue in 2 ways either directly in the delivery, or by creating a shipment document.

Shipment is generally created when you want to capture the freight cose incurred in moving the stocks in the system.

So, in both the above case against a delivery a shipment doc is created using VT01N.

This shipment doc will capture the route, Transport service provider i.e. the vendor you have chosen for the shipment, truck type used etc.

Against the shipment doc you create a shipment cost doc using VI01, which will capture the freight cost incurred.

Then when you do shipment completion in VT02N, PGI is automatically triggered.

Also, shipment doc will capture the time and date when the shipment started and is ended.

Reward, if useful

Regards,

Noopur

Former Member
0 Kudos

Hi,

Create Shipment Document

Use

After the status of the delivery is open for transportation planning, it is possible to create a shipment document to schedule the transportation.

Logistics  Logistic Execution  Transportation Transportation Planning  Create  Single document

T.code: VT01n

Enter your transportation planning point and shipment type. Press enter.

Creating the shipment cost document

Use

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.

Logistics  Logistic Execution  Transportation Shipment cost  Create  Single document

T.code: VI01.

After creation of shipment cost doc. You settle the Shipment cost.

Go to VI02, enter shipment cost no.and press enter.

Then go to Overview -- Fright cost items, Select hte line item and double click it.

Go as main menu: Itme --> 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.

Shipment cost settlement and documents:

Use

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.

Reward points if it helpful

Regards

Govind.