Settlement in TM 9.0 New functionalities with TM 9.0 Ananth Bhat SAP Development, Transportation & Logistics December 2012
Agenda Shipper Functionality Freight Cost Distribution LSP / Freight Forwarder Forwarding Settlement o ERP Printing Enhancements o Execution based Settlement Internal Settlement Air Freight Settlement Process extension (Freight Settlement) Charge Correction Advice Document (CCAD) Credit memo on Freight Settlement Q&A 2011 SAP AG. All rights reserved. 2
Freight Cost Distribution Shipper Functionality
Cost Distribution - for Shipper Industries What is Cost Distribution? Accurate freight cost allocation across orders & materials for material valuation and order profitability analysis SAP TM SAP ERP Inbound Delivery Freight Settlement Document (with cost distribution at delivery item level) Outbound Delivery Freight Settlement Document (with cost distribution at delivery item level) Agency Business Document (with freight costs per material) Agency Business Document Material Valuation CO-PA Sales Order Profitability Direct item-level or hierarchy-based freight cost distribution via weight; volume; weight * distance Full freight cost visibility in all relevant SAP TM & ERP documents (freight orders, bookings, settlement docs, sales, purchasing, stock transfer orders, agency billing docs..) BADI for customer-specific charge type rules / cost distribution calculation (i.e. pallet, distance) Freight Cost Posting in SAP ERP at Material level for Material valuation as well as Sales order profitability 2011 SAP AG. All rights reserved. 4
Cost Distribution Concept SAP ERP 7a Incoming Invoice AB Posting SAPERP ERP orders/deliveries 1 7b 6a MIRO MM-PO MM-SES... CO-PA Material Valuation CO 6b TM 8.x OTRs/DTRs 2 TM 9.0 FUs Transfer FSD + Distributed Costs to ERP FOs FBs 3 4 FSD 5 Distributed Costs 2011 SAP AG. All rights reserved. 5
Typical Posting Pattern for FSD with Cost Distribution Outbound Freight Cost Posting Inbound Freight Cost Posting 6a. Freight Settlement Document (FSD) (Step 6a) Freight Clearing Account (GBB) GR/IR Freight (WRX) 100 100 6a. Freight Settlement Document (FSD) (Step 6a) Freight Clearing Account (GBB) GR/IR Freight (WRX ) 100 100 6b. VB posting for distributed costs (Step 6b) Freight Clearing Account (FR1) Freight Expense Account (TM1) for Mat 1 / Delivery 1 50 50 for Mat 2 / Delivery 1 30 30 for Mat 3 / Delivery 2 20 20 6b. VB posting for distributed costs (Step 6b) for Mat 1 Freight Clearing Account (FR1) BSX/PRD Inventory or Material Price difference 50 50 for Mat 2 30 30 for Mat 3 20 20 2011 SAP AG. All rights reserved. 6
Outbound Delivery
Freight Order with 2 Outbound deliveries 2011 SAP AG. All rights reserved. 8
Freight Settlement document 2011 SAP AG. All rights reserved. 9
Cost Distribution Summary & Detail 2011 SAP AG. All rights reserved. 10
FSD Posting Step 6a 2011 SAP AG. All rights reserved. 11
Freight Cost Split Posting in SAP ERP (Step 6b) 2011 SAP AG. All rights reserved. 12
Account Assignments from Source to Post Freight Cost Sales order Item Account Assignment AB Document Item Account Assignment 2011 SAP AG. All rights reserved. 13
Postings to Financials of the distributed Freight Cost 2011 SAP AG. All rights reserved. 14
Cost Distribution Summary for TM 9.0 1. Cost Distribution take place in Freight Order (FO) Freight Booking (FB) and Freight Settlement Document (FSD). 2. Transfer of the distributed cost to SAP ERP is only done with the Freight Settlement Document (FSD) 3. Distribution of the cost to the Level of Delivery Item for Shipper Scenario 4. Distribution of the Cost by Weight, Volume and Distance & Weight within TM. 5. Customer extension possible via BADI to do other kinds of distribution like piece, pallets, distance and other aspects like weights etc. 6. Automatic distribution of the Freight Cost at the time of FSD creation. 7. SAP ERP integration as a Single step via intermediate Account postings. 1. FSD integration posting as in TM 8.x (PO/SES) 2. Material Valuation/CO-PA Posting 8. Freight Invoice variance posting in SAP ERP also enabled to post variances to Material Valuation / CO-PA 2011 SAP AG. All rights reserved. 15
Forwarding Settlement Enhancements ERP Printing Enhancements
SAP TM Customer Freight Invoicing Simple Overview Process Customer SAP TM SAP ERP SD Need for Transportation Create Forwarding Order Details of what needs to Be transporte d Simulate Printing of Customer Invoice Enriched Printing of Customer Invoice with TM data Create forwarding settlement document P/IWSRMI Create billing document (invoice) 2011 SAP AG. All rights reserved. 17
Simulate Customer Invoice in SAP TM 2011 SAP AG. All rights reserved. 18
Summary - FWSD Simulation and printing Ability to Do a Simulation of the Printing of the FWSD with TM and ERP Data in TM prior to transferring the FWSD from TM to ERP. TM Data Transfer enriched from TM to ERP. ERP now has additional TM Logistical data and other data transferred with the FWSD. Customer Enhancement possible to send Customer specific fields and print them eventually also from ERP on the Customer Billing documents. 2011 SAP AG. All rights reserved. 19
Forwarding Settlement Enhancements Execution based Settlement
Business Scenario Trailer PM1 Container FWO 1 FWO2 FWO 1 FWO2 Multiple FWOs from the Customer to be moved together. Billing based on the (Full) Trailer/ Full Container basis across the multiple FWOs 2011 SAP AG. All rights reserved. 21
Scenarios for Execution Based Forwarding Settlement Buyers Consolidation in Ocean Scenario (Supported from release TM 8.1) o Multiple FWO s consolidated in Container for Main carriage and On Carriage o Consolidated Charge calculation using FCL rates for main and On Carriage. Trailer Based Consolidated settlement Land (New in TM 9.0) o Multiple FWO consolidated on Trailer for Execution o Consolidated charge calculation using Trailer load. 2011 SAP AG. All rights reserved. 22
Execution Based Forwarding Settlement - 1/4 Forwarding Agreement Agreement for Execution based Settlement Trailer Based Charge Calculation and customer settlement on the basis of execution. 2011 SAP AG. All rights reserved. 23
Execution Based Forwarding Settlement - 2/4 Trailer Document 2011 SAP AG. All rights reserved. 24
Execution Based Forwarding Settlement - 3/4 Forwarding Settlement Document 2011 SAP AG. All rights reserved. 25
Execution Based Forwarding Settlement - 4/4 Forwarding Settlement Document Charge Data 2011 SAP AG. All rights reserved. 26
Difference between Execution Based and FWO based settlement Execution Based Settlement Settlement Item Execution Document viz Trailer or Container Charge Calculation Charge Group look up Data Source (Stage + Logistical quantities) Per Execution document viz Trailer or Container Per execution document viz. Trailer or Container and is across FWOs on the Execution document Execution Document viz., Freight Booking Item or Trailer Document FWO Based settlement FWO FWO FWO Controlled via the Settlement profile 2011 SAP AG. All rights reserved. 27
Internal Settlement LSP / Freight Forwarder Functionality
Scenarios for Internal Settlement 1. Internal Settlement from an internal organization in your company to another internal organization to recover costs incurred in delivering transportation services for a forwarding order 2. Internal settlement to settle the cost of providing internal resources in a scenario of freight orders with own resources. 2011 SAP AG. All rights reserved. 29
Cost Transfer via Internal settlement - Scenario INCO Term FOB CSI-STA-NUE Nürnberg Station Export Station Nürnberg issuing invoice to Dallas Station (Main carriage) $2200 Nürnberg issuing invoice to Shipper CSI-CU-NEU $ 500 Shipper: CSI-CU-NUE Nürnberg Rotterdam issuing Internal invoice to Nürnberg (internal Rating) (Main carriage) $ 2200 CSI-CFS-RTM Rotterdam CFS Export CFS CSI-CFS-NWK Newark CFS Import CFS CSI-STA-DLS Dallas Station Import Station Dallas issuing invoice to Consignee CSI- CU-DLS $2800 Consignee: CSI-CU-DLS Dallas FSD from Carrier 1 for pre-carriage Payee Nürnberg $400 FSD from Carrier 2 for Main Carriage Payee Rotterdam $2000 FSD from Carrier 3 for On-Carriage Payee Dallas $400 Company Code DE Company Code NL Company Code US External Settlements Internal Settlements Cargo Movement Legends Internal Settlement Document External Settlement Document Carrier Settlement Document 2011 SAP AG. All rights reserved. 30
Internal Settlement Master Data Setup Internal Agreement Internal Agreement based on Internal Rates. 2011 SAP AG. All rights reserved. 31
Internal Settlement Process Flow Internal Settlement Creation 2011 SAP AG. All rights reserved. 32
Internal Settlement Resource Based Own Resource Based Freight Order Execution. Resource Ownership defined in the Resource Master (Example Owning organization for Trailer, Truck). Resource As a Basis (Calculation Resolution Base) for the calculation of Freight Costs 2011 SAP AG. All rights reserved. 33
Internal Settlement Resource Based 2011 SAP AG. All rights reserved. 34
Internal Settlement -- Freight Order with Own Resources 2011 SAP AG. All rights reserved. 35
Resource Based internal Settlement 2011 SAP AG. All rights reserved. 36
Summary of Internal Settlements Internal settlement Supports Two Variants 1. Internal Settlement from an internal organization in your company to another internal organization to recover costs incurred in delivering transportation services for a forwarding order 2. Internal settlement to settle the cost of providing internal resources in a scenario of freight orders with own resources. 3. Internal Settlement support Inter and Intra Company Transactions. 4. New FWSD category - internal settlement 5. ERP integration 1. Inter Company Process SD Billing document integration 2. Intra Company Process Via CO Document Posting 2011 SAP AG. All rights reserved. 37
Charge Correction Advice Document Air Freight Settlement Extension (Freight Settlement)
Air Freight Settlement process overview 2011 SAP AG. All rights reserved. 39
Sample IATA CASS Settlement Report 2011 SAP AG. All rights reserved. 40
Charge Correction Advice Document 2011 SAP AG. All rights reserved. 41
Credit Memo on Freight Order
Credit memo for Freight Order Ability to create Credit Memo from TM for a Freight Document FO or FB Credit memo with reference to the Freight order or Freight booking. Pre Requisite A successful transfer of a FSD to SAP ERP. 2011 SAP AG. All rights reserved. 43
Credit memo For Freight Order 1/3 2011 SAP AG. All rights reserved. 44
Credit memo For Freight Order 2/ 3 2011 SAP AG. All rights reserved. 45
Credit memo For Freight Order 3/3 2011 SAP AG. All rights reserved. 46
Summary CCAD and Credit Memo TM Supports two new categories of FSD to support follow on processes on Freight Settlement Charge Correction Advice Document (CCAD) Air Freight Booking Credit Memo FO and Ocean Freight Booking TM ERP integration of the above documents enhanced to handle credit posting. 2011 SAP AG. All rights reserved. 47
Questions
Thank You! Contact information: Ananth Bhat Title : Product Owner (Invoicing) Transportation Management SAP Labs Bangalore ananth.bhat@sap.com
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