Shipment

Key Points
1) Pre- requisite for Shipment (Required field for creation of Shipment)
i) Delivery Document
ii) Transportation Planning Point
iii) Shipment Type
iv) Route
v) Forwarding Agent
vi) Shipping Type (Truck, Container etc.)
2) Post Goods Issue and POD will be performed on Delivery Orders within the shipment.
3) Individual Shipment
In Individual Shipment, there will be one Single point of departure and one
single Destination.

4) Multi Drop Shipment

In Multi Drop Shipment, there will be one point of departure and one or
more multiple Destinations/Ship to Parties.
5) The following forms of transportation processing are distinguished:

In an individual shipment, one or more deliveries are transported by a single mode

of transport from one point of departure to one final destination.
In a collective shipment, one or more deliveries are transported by a single mode of
transport from one or more points of departure to one or more final destinations.
In a multimodal shipment, deliveries are transported by several modes of transport
between one or more points of departure and one or more final destinations.

6) Shipment Status

Planned Button: After shipment creation is completed, planning button has to be clicked
by Transport Planner.
Check In: Transport Planner also clicked Check In button. For CDC01, CDC02, UFS and SDF
warehouses, this action will send interface to WMS systems. Shipment with this status is ready for
picking.
Loading Start: WMS systems will update this status after pick confirm has been done in
WMS (CDC01, CDC02, UFS and SDF only). For other DCs or BOFs, this button must be clicked after
picking.
Loading End: During this stage, Goods issue is completed for all the deliveries present in
the shipment. Documents can be printed at this status.
Shipment Comp: System will create the invoice for all GT deliveries in the Shipment. If
there are deliveries to CDC01, CDC02, UFS or SDF, ASN will be sent via interface.
Shipment Start: Shipment tariff (most expensive) will be calculated. Captures the truck
leaving time.
Shipment End: Captures the truck reaching time.

7) Shipment document can be printed collectively with transaction VT70.

8) Tables for Shipment
VTTK - Shipment Header
VTTP - Shipment Item
9) Transportation planning point determination is based upon the
i) Shipping Point
ii) Shipping Type

10) Transportation Planning point (TPP) is assigned to Company Code. We can assign more
than one transportation planning point with same company code. The relationship between
company code and TPP is one to many.
11) Delivery type, delivery item category and Route should be maintained as relevance for
Transport for creating the Shipment Document.
12) When the company is involving in the transportation activities, these are the two things
involved in the transportation.
The shipment document is one of the important elements in the shipment process. The
shipment document will be creating with reference of Delivery doc.
The system will allow you to create shipment document for the delivery
before PGI and after picking completion.
The shipment document contains the all necessary data which is
helpful to carry out transportation planning.

Ex:- What is route, what is the carrier, what is mode of the transport, distance of the route,
what are the stages in that route,etc.
The shipment cost document will be created with the reference of shipment document.

Based on the shipment cost document the amount will be settled to the carrier or
transporter.

13) The Standard SAP process is after creating picking before PGI we do shipment process.

But on depends on Business requirement such that Shipment document can be generated
either before doing PGI or after goods issue is posted. In VT01N screen, once you click the
"Delivery" tab, there would be some default data pop up. We can add delivery in Shipment
by changing this value especially under the tab "Delivery status".

14) Leg in Shipment & Stage

A Stage actually refers to the information about the geographical factors of a shipment. Any
shipment can have 3 types of stages - Legs, Load Transfer Point and Border Crossing Point. A
shipment can have any one or all 3 or any combination of the stages.
Leg - Refers to the Starting point and Ending point of a shipment. Could also include any
intermediate points (Destinations)
For eg. : Assume there are two deliveries (D1 and D2) in a shipment.
 D1: From A – B
D2: From C – D
Now the legs will typically be
A - B (D1 is assigned)
B - C (Empty leg - No deliveries)
C - D (D2 is assigned)
There are different types of legs available.
1. Direct leg
2. Preliminary Leg
3. Main Leg
4. Subsequent Leg
5. Return Leg
In the example above, all legs are "Direct Legs".
If a shipment goes from Bangalore to Palo Alto Via Mumbai and San Fransisco then
Bangalore - Mumbai (Via Road / Rail) - Preliminary Leg
Mumbai - SFO (Via Sea / Air) - Main Leg
SFO - Palo Alto (Via Road) - Subsequent Leg
Off the above 3 legs, Mumbai could be a Load Transfer Point (The point where a shipment is
unloaded from one MOT and loaded onto another).
SFO could also be a load transfer point.

Stage - A Stage actually refers to the information about the geographical factors of a
shipment. Any shipment can have 3 types of stages –
i) Legs - Direct connection between two points
ii) Load Transfer Point and
iii) Border Crossing Point.
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”
16) You 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
 Define transport-relevant texts
 Specify output required for transportation (such as shipping papers or EDI
messages)

17) Different fields of Shipment document are,

i) Shipment Route :- By setting status 'planned' the route from the corresponding deliveries is
copied as the shipment route into the shipment header, if it is identical in all deliveries and if
Customizing of the shipping type has been set up for automatic route copying. Data from the route
header such as service agent(s), shipping type(s), distance, and planned durations are also copied
into the shipment document header.
Manual entries thus take precedence and will not be overridden.
ii) Forwarding Agent:- Forwarding agent is a Vendor. When you set the status to 'planned', the
forwarding agent is copied as the service agent from the corresponding deliveries into the shipment
header.
The forwarding agent in the shipment header can therefore be specified in a number of ways
(options listed in descending order with regard to priority):

1. You can enter it manually.

2. You can enter it indirectly by specifying a route.
3. You can copy it from the deliveries (if it is unique and if the corresponding
Customizing settings have been made).
4. You can adopt it from the route that has been copied from the deliveries into the
shipment header.

iii) Mode of Transport: - Mode of transport are Road, Train, Sea etc.
iv) Shipping Type: - The shipping types can include the following:
Truck
Truck with trailer
Container
Plane
Ship
18) 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'.

19) 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.

Process Flow (Steps)

1) Create Shipment – VT01N
2) Change Shipment – VT02N
3) Display Shipment - VT03N
4) Collective Processing – VT04
5) Collective Processing in Background – VT07

General Process is-

a) VL01N – Create Delivery
b) VT01N – Create Shipment
c) VL02N - PGI
d) VI01 - Create Shipment Cost
e) ML81N – Service Entry Sheet (it is created automatically at the time of shipment cost
document)
f) MIRO – Invoice Verification

Shipment Docs (VT01N) 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.

Shipment Document Flow:-

Shipment Document Screen:-

The complete process flows from Sales Order to Shipment Cost are as below.

1) Without WM

VA01 – Create Sales Order

VL01N – Create Delivery
VT01N – Create Shipment and add delivery in to Shipment, also add handling unit
VL02N – Picking in delivery (assign Batch if require)
VT02N – PGI (By clicking the loading end button)
VT02N – Invoice Created and output will be triggered (By clicking the
Shipment Completion button).

2) With WM

VA01 – Create Sales Order

VL01N – Create Delivery
VT01N – Create Shipment and add delivery in to Shipment, also add handling unit
LT03 – Create Transfer Order
LT12 – Confirm Transfer Order
After above transfer order process, picking will be done in the
delivery.(Batch will be also assign through TO in delivery if require).

VT02N – PGI (By clicking the loading end button)

VT02N – Invoice Created and output will be triggered (By clicking the Shipment
Completion button)
Note - If we are using the handling unit in our process. Then we need to maintain this in
Shipment. Otherwise we will get error message at the time of Shipment Cost.(This is
customization in U2K2 and handle by routine 977).

Configuration Steps
Path for configuration in SPRO:-

1) Determine the Shipping Point

i) Define Shipping Condition
ii) Define Loading Group
iii) Define Rule for Determination of Shipping Point
 iv) Assign shipping condition, loading group to Shipping point
2) Define Routes
i) Define Mode of Transport
ii) Define Shipping Type
iii) Transportation Connection Points
iv) Define Routes and Stages

Detail Screen for Route:-

3) Route Determination
i) Define Transportation Zones
ii) Define Transportation Groups
iii) Maintain Route Determination
4) Shipment Configuration
i) Maintain Transportation Relevance
a) Maintain Transportation Relevance for Delivery Types
b) Maintain Transportation Relevance Delivery Item Category
c) Maintain Transportation Relevance Routes
ii) Define Shipment Types
iii) Maintain Transportation Planning Point (Path – Enterprise Structure –
Definition- Logistic Execution)
iv) Define Shipping Type
v) Define and Assign Activity Profile
5) To define the Activity Profile we create Variant for Program – RV56ABST.
Program - RV56ABST – Control of activities when setting a Status in the Shipment
6) Shipment type controls the following features for the shipment document.
i) No. range for shipment document either internal or external assignment.
ii) The shipping type (truck, train, mail,for example)
iii) The service level (general cargo, grouped load, for example)
iv) Output determination and text determination procedure.
v) Default values for weight and volume unit for the shipment document.
vi) Copying data from preceding document (forwarding agent and route, if unique,
for example).
vii) Leg indicator (preliminary leg, subsequent leg, direct leg, for example)
viii) The processing control (collective shipment using one mode of transport ,for
example) Individual Shipment: One or more deliveries on a transport but only one sending
and receiving location. Collective Shipment: One or more deliveries on a transport but
several sending and receiving locations.
ix) The completion type (loaded outbound shipment, inbound shipment, for
example)
x) The leg determination type (automatic leg determination, for example).

7) Activity profile controls the following activities in Shipment:

 i) Posting goods issue for deliveries currently in shipment
ii) Billing deliveries currently in shipment
iii) Printing certain outputs

Shipment Cost
Key Points
1) Shipment Cost document is created with reference to the Shipment Document.
Only Shipment document with Shipment start status can be created shipment cost.

2) Pre requisites of Shipment Cost Calculation

i) Shipment document should be shipment cost relevant ( i.e.., relevant for cost
calculation)
ii) Shipment should have Shipment Start status.
3) Tables for Shipment Cost
VFKK - Shipment Costs: Header Data
VFKP - Shipment Costs: Itm Data
4) Shipment cost functionality is used primarily for the following;
i) Calculating shipment costs
ii) Settling shipment costs to the Transporter
iii) Charging the Shipment Costs to the Customer
5) Following document are created with Shipment Cost document
i) Service entry sheet (ML81N)
ii) Invoice Receipt (MIRO)
6) After the shipment cost settled in shipment cost document, it has the following affects:
i) It creates a service entry sheet that refers to the purchase order determined.
ii) It posts acceptance of services performed.
iii) It creates an accounting document for the accruals.
iv) Further subsequent documents are created in FI.

7) Setting for creation of PO in Shipment Cost:-

(i)New PO is created automatically which is a service PO against which the Payment is done to the
transporter.

Settings: You need the Maintain the combination of Transportation Planning Point, Shipment cost
doc, Purchasing organization, Purchasing Group and Plant.

Under Shipment cost --->Settlement …This determines under which purchasing organization and
purchasing group the PO is created.

Also you need to maintain OBYC settings Based on the Valuation class and Account Mod Key you
may have used.

(ii) Item Category of shipment cost controls that,

 a) Should every time new PO document will be created for Shipment Cost document.
Or
b) Same PO document will be linked with all the shipment cost document.

However, please note that only NB type PO gets created.

iii) So PO creation in Shipment Cost is control by the following configuration settings,

a) Assign Purchasing Data

b) Shipment Cost Item Category

Above configuration settings are also responsible for creation of Service entry sheet.

8) Service Entry sheet

The service entry sheet is the rough service equivalent of a goods receipt for physical goods when
doing MIGO. you do this to record the cost and this will form a basis in invoice verification. this is
generally a MM function.

In LE-Transportation, when you complete a shipment, you move on to creating a shipment cost
document. When settings are properly done, the saving of the shipment cost document does a
service entry as well, so that you do not need to do this separately.

9) The following settings are required to transfer the freight condition of shipment cost to
Billing document.

i) Condition Type FK00 - Shipment Cost Pricing procedure. Set to Statistical.

ii) Billing Pricing Procedure has the same Condition type FK00, marked manual.

iii) Item Pricing in Copy Control for Billing Document type LF to F2 set to 'F' (Shipment
Costs)

iv) Specific procedure Checkbox ticked against Pricing Procedure

10) For each shipment document separate shipment cost document will be created, its not
possible to combine more than one shipment docs to one shipment cost doc as standard in
SAP.

11) Create a PO in shipment Costing because the Pricing is based on the agreement between
you and your Transporter. The Transporter is none but your Vendor whose service you are
hiring.

You generally create a PO for an year or monthly as per the requirement for a reference.

Further to add on to above PO is also utilized as a reference when Payments are to be made
to the Transporter and while invoice verification.
12) In general, based on the shipment cost documents a service-based PO is generated in
the background which is sent to the supplier (Vendor). When the invoice (MIRO Doc)
arrives, it is matched against this PO.

13) Purchase Order Determination

i) Transfer to accounting for the creation of accruals requires a service entry. Every service
entry sheet is based on a purchase order. This purchase order must first be created in
purchasing for the service agent. The first stage in the transfer involves the system
determining these purchase orders according to certain settings.

If several possible purchase orders were selected, the system sorts them according to the
following criteria:

 According to date type (ascending)

 According to validity period start date (descending)
 According to validity period end date (ascending)
 According to purchase order number (ascending)
 According to purchase order item number (ascending)

ii) Creating the service entry sheet and creating accruals

The second stage in the transfer involves creating the service entry sheet that refers to a
purchase order. Acceptance of services performed is posted and an accounting document is
created in FI for creation of accruals. The system creates further subsequent documents in
FI.

14) Account assignment category U (unknown) assigned in PO as default. In service entry

sheet account assignment category (say;K) comes from shipment cost configuration.

15) To control header field of PO as per our requirement, we can use following exit.

You may consider using the EXIT_RV54POCR_006 for PO Header data. Depending on your condition,
you can influence the use of relevant fields in the PO Header as a rule to determine the PO Type
used. Example, BSART for Company Code etc.

You must also ensure that the required PO Type is created in customizing.

16) Service agent in Shipment Cost is a Vendor. When a shipment costs item is created, the
transportation service agent is copied from the shipment header or shipment stage to which
the item refers. The service agent is copied according to the partner function assigned to the
item category.
17) Invoicing party is used as a Vendor in Shipment Cost. The invoicing party is used to find
important purchase order items.

When you create a shipment cost item that is relevant for settlement, the system tries to
determine the invoicing party automatically.
The system reads the vendor master record of the transportation service agent. If exactly
one invoicing party is stored there, this is proposed automatically. If several invoicing parties
are stored in the vendor master, then you can select one when you create the shipment cost
items manually. If the item is being created automatically by the system, an entry is made in
the log and the invoicing party is not proposed. If the vendor master record does not
contain any invoicing parties, the system proposes the transportation service agent as the
invoicing party.
Dependencies:-

If the account assignment status of a shipment cost item is partly or fully account assigned,
then the invoicing party can no longer be changed.

18) In the case of shipment cots, the transaction key set to 'GBB' by the system. For G/L
account assignment in OBYC.

Process Flow (Steps)

1) Shipment Cost Master Data
TK11 – To create the shipment cost condition records.
2) Shipment cost document
i) Create Shipment Cost – VI01
ii) Change Shipment Cost – VI02
iii) Display Shipment Cost - VI03
iv) Collective Shipment Cost – VI04

3) In Shipment Cost document once we transferred the cost following three documents are
created automatically.

i) PO

ii) MIGO

iii) Service Entry Sheet

a) ML81N – Service Entry Sheet/Service Acceptance (it is created automatically

at the time of shipment cost document)

Service Procurement - Dr

Cost of goods sold (GR/IR) - Cr

b) MIRO – Invoice Verification

Cost of goods sold (GR/IR) - Dr

Vendor - Cr

Shipment Cost Document Screen:-

Screen of PO created at the time of Shipment Cost doc:-
MIGO Document:-

Accounting Entry at the time of MIGO:-

Service Entry Sheet:-

MIRO Document:-
Accounting Entry at the time of MIRO:-

4) In Shipment Cost process there are two scenarios regarding PO creation.

i) Every time a new PO document is created for shipment cost document.

Or
ii) We created one PO and that same PO document will be linked with all shipment cost
document.

5) PO and service entry sheet are created to settle the shipment cost.

6) While creating a shipment cost document .A service PO is getting generated in the back ground
based on which a service entry sheet is created and LIV( Logistic invoice verification) is made.

7) PO gets generated not at the time of creation of shipment cost document. It gets created once
the shipment cost document is transferred. You transfer the shipment cost for PO to be created.

8) To cancel a Shipment Cost document (SCD) there are two ways:

(i) Start VI02, enter the SCD number and ENTER
(ii) Select the transferred item, for which you want to cancel the transfer
(iii) Scroll to the end of data line in the overview screen
(iv) Set the flag in column 'Cancel' and press ENTER
(v) Update the cancellation date, if the period (= transfer period) is closed already
(vi) Save the SCD
=> The Transfer of the SCD to FI/CO is canceled now.
Other way is,
(i) Start VI02, enter the SCD number and ENTER
(ii) Double click on the transferred item, you want to cancel
(iii) Select tab strip 'Settlement'
(iv) Set the flag in field 'Cancellation' and press ENTER
 (v) Update the 'Date canc.', if the period (= transfer period) is closed already
(vi) Save the SCD
=> The Transfer of the SCD to FI/CO is canceled now

In both cases the used Service Entry Sheet (SES) will be deleted, but the Service Purchase
Order will remain, even if the PO was created automatically by the settlement process of
the SCD.

Configuration Steps
Path for Shipment Cost configuration in SPRO:-
1) Define Date Rules
2) Define Item Category (This is a Shipment Cost Item Category)
3) Define Shipment Cost Type
4) Assign Shipment Cost Document Type to Item Categories
Shipment Cost Type:-

Shipment Cost Item Category:-

Assign Shipment Cost Type to Shipment Cost Item Category:-

5) Assign Shipment Cost Type to Shipment Type

6) Define Shipment Cost Relevance for Shipment Types

7) Set up Pricing for Shipment Cost Calculation.

Pricing for Shipment Cost calculation.
Pricing Configuration includes the following Steps.

a) Define Condition table (Similar to Standard Pricing)

b) Define Access Sequence (Similar to Standard Pricing)
c) Define Condition Type (Similar to Standard Pricing)
d) Define Pricing Procedure (Similar to Standard Pricing)
e) Assign Pricing procedure (This is different from Standard Pricing.)
Condition Type for Shipment Cost Pricing Procedure:-

There is some difference between the standard pricing procedure condition type and Shipment
cost pricing procedure condition type.

i) There is a Freight Costing tab in Shipment cost condition type.

ii) There are some other field also which are not common in both type of condition type.

Shipment Cost Pricing Procedure:-

 In Shipment Cost Pricing Procedure there are only 14 columns. There will be no Account Key and
Accruals column. Because account determination will be control by OBYC settings not by VKOA.

8) Assign Purchasing Data

9) Set up Automatic G/L Account Determination

OBYC screen
10) Pricing Procedure Determination for Shipment Cost:-
i) Item determination procedure group
ii) Service agent procedure group
iii) Shipment type procedure group
iv) Shipment cost pricing procedure
All the above four will be assigned with the Transportation Planning Point (TPP).More than one
combination could be assigned with single TPP.

Path for Shipment Cost Pricing Procedure in SPRO:-

i) Define Shipment Type Procedure Group and assign it to Shipping Type.

ii) Define Item Procedure Group and assign it Shipment Cost Item Category.

iii) Define Service Agent procedure group and assign it in Vendor Master. Here transporter
will be created as Vendor to perform the Shipment activity.
iv) Shipment Cost Pricing Procedure Determination
11) The following settings must be made in Customizing so that shipment costs calculated in the
shipment cost document can be used in the billing document.

In addition to the existing condition types, you must create condition types using the same name in
the pricing procedure for the shipment cost calculation and in the pricing procedure for billing.
In the pricing procedure for shipment cost calculation, you mark these condition types as Statistical
so that shipment cost calculation is not influenced. In Customizing, choose Logistics Execution 
Transport  Shipment costs  Pricing  Pricing control  Define and assign pricing
procedures.
In the pricing procedure for billing, these condition types must be marked as Manual. In
Customizing, choose Sales and Distribution  Basic Functions  Pricing  Pricing Control 
Define and assign pricing procedures  Maintain pricing procedure. In the pricing procedure for
billing, select the Specific Procedure indicator so that the condition class and the statistical indicator
is not copied from the shipment cost calculation procedure.

In the copying control for billing documents, you must also specify the pricing source for shipment
costs at item level. In Customizing, choose Sales and Distribution  Billing  Billing documents
 Maintaining copying control for billing documents  Copying control: Delivery to billing
document. Enter the pricing source F (shipment costs) for the relevant billing types and delivery
types for the item.

You can use price source “F” in copying control and below process (For this process
shipment cost need to be created 1st then only billing is possible)
You can bill the customer with the actual shipment costs, which include technical aspects such as
weight, volume, quantity and number of pallets.
Prerequisites
In Customizing, the following settings are required
 In addition to the condition types that already exist, you must create condition types of
the same name in the pricing procedure for shipment cost calculation and in the
pricing procedure for billing price determination. In the pricing procedure for shipment
cost calculation, you can mark the condition types as statistical values in order not to
influence the shipment cost calculation. To do this, choose the following path in
Customizing Logistics Execution  Transportation  Shipment costs  Pricing  Pricing
control  Define and assign pricing procedures.

Billing pricing procedure

In the pricing procedure for billing price determination, these condition types can be marked
manually if you want to modify during billing. To do this, choose the following path in
Customizing Logistics Execution  Basic functions  Pricing  Pricing control  Define
and assign pricing procedures  Maintain pricing procedure.
  For the billing price procedure, the indicator Specific procedure must be selected so
that the condition class and the statistical indicator are re-determined and are not copied from
the shipment cost pricing procedure.

 Also, you must specify the price source "F shipment costs" at the item level for copying
control for billing documents. For this purpose, choose the following path in the
Implementation Guide: Logistics Execution  Billing  Billing documents  Maintain
copying control for billing documents  Copying Control: Delivery document to billing
document, and specify the price source F for shipment costs for the respective billing and
delivery types for the respective item.

Now test is using manual condition in shipment pricing procedure, means no access sequence then
also it is getting copied in to billing. Means we can write condition base formula and copy from
subtotal to the new condition type and then copy into billing
Note: If the condition type is manual in pricing procedure of shipment and condition record exist then
the rate is considered in billing from the condition record even though we maintain the manual rate in
shipment.