With SAP S/4HANA Cloud, Private Edition 2023 FPS02, you can now activate TM scenarios as part of best practice content and jumpstart your implementation. These scenarios were available only for Public Cloud before this release.
Before going into details of these scenarios , lets have a quick look on what exactly is SAP Transportation Management.
SAP Transportation Management (SAP TM) supports you in all activities connected with the physical transportation of goods from one location to another. You can use SAP TM to perform the following activities, for example:
Create forwarding orders for your ordering partiesTransfer orders and deliveries from an ERP systemCreate freight bookingsPlan the transportation and select carriersTender transportation servicesCalculate the transportation charges for both the ordering party and the supplier sideConsider foreign trade and dangerous goods regulations
In the supply chain network, SAP TM helps the businesses to plan their transports by choosing the optimized mode of shipment, best carrier selection based on rating, cost, efficiency etc., thereby also choosing the optimized routes.
SAP TM allows manual and automated Tracking & Tracing of shipments by monitoring and reporting events in real time.
Transportation Management System helps to improve operations, drive business, and provide better service to customers. In doing so, the TMS offers numerous benefits that help the company move freight from origin to destination accurately and cost-effectively.
Now lets look at the Available Scenarios in SAP S/4HANA Private Cloud
There are total 6 scope items for Transportation Management. 3 of them are Advanced and 3 of them are labelled as Basic depending on the functionality and licensing cost.
SAP TM mainly is divided into Transportation Planning, Transportation Execution, Settlements and verifications.
Advanced TM
6W2 – Manual Transportation Planning || S4HANA PCE 2023 FPS026W3 – Transportation Execution || S/4HANA PCE 2023 – FPS026W4 – Freight Settlement || S/4HANA PCE 2023 – FPS02
Basic TM
7IV – Manual Transportation Planning – Basic || S4HANA PCE 2023 FPS027IW – Transportation Execution – Basic || S/4HANA PCE 2023 – FPS 027IX – Freight Settlement – Basic || S/4HANA PCE 2023 – FPS 02
Manual Transportation Planning – 6W2/7IV
Manual transportation planning allows you to create or change a transportation plan. To create a transportation plan, you assign transportation demands (such as freight unit stages) to transportation capacities (such as equipment types, for example, truck types, rail car types, or container types). The system creates capacity documents (freight orders or freight bookings). Scheduling runs automatically after you perform a planning activity for a freight order. Manual planning is done in the Transportation Cockpit app.
Transportation Execution – 6W3 /7IW
With this process, you execute and track the transportation process for your freight documents. You can set the relevant statuses to track the arrival and departure at your locations and set the checkout status to enable freight cost confirmation. You can set statuses for the entire document, as well as for individual stages and locations.
Freight Settlement – 6W4 /7IX
Freight costs calculated for the freight documents (freight orders and freight bookings) are to be posted in financial accounting to record such costs in accounting as accruals and to pay the carriers or freight forwarders. Once the freight documents are in a status in which the transportation has been initiated or completed, the freight costs can be posted to financial accounting. If there are errors during the posting of accruals, the freight documents can be monitored for such posting errors. The invoice received from the carrier or freight forwarder is verified against the expected costs calculated in the freight document. Depending on the number of invoicing parties involved for a freight document, multiple invoices can be received from different carriers executing the transport. For example, for an ocean freight booking, you can receive invoices from different invoicing carriers to execute different stages of the ocean booking (for example, one for the pick-up, one for the main carriage, and another one for the delivery). During invoice verification, price variances and unplanned freight costs can be captured. Freight cost allocation capabilities are used to manage freight costs that occurred during the transportation processes. The costs are posted to a material valuation in an inbound process, and to an expense account (general ledger) in an outbound process.
Now since we understood ‘what’ of these scenarios , lets have a look at ‘How’
In order to initiate the TM processes, the pre requisite preceding documents need to be created, also referred to as ‘Business Conditions’
Based on this preceding document (Business Condition), the inbound or outbound flow will be executed. This part of the process can be executed with scope items 2TX, BDD, BD9 and 3NR, as shown in the diagram.
Inbound and Outbound flow can be executed for 4 modes of transport – Road, Rail, Ocean and Air.
All the succeeding documents will be created as you execute the process – Freight Unit, Freight Order (Rail and Road), Freight Booking (Ocean and Air) and Freight Settlement Document.
Inbound Scenario
The following end to end process Transportation Management inbound consists of the scope items 2TX (Direct Procurement with Inbound Delivery) or BDD (2TX in this example) , 6W2 Manual Transportation Planning, 6W3 Transportation Execution and 6W4 Freight Settlement.
Outbound Scenario
The following end to end process Transportation Management outbound consists of the scope items BD9 Sell from Stock or 3NR Sales Scheduling agreements, 6W2 Manual Transportation Planning, 6W3 Transportation Execution and 6W4 Freight Settlement.
. Difference between Basic and Advanced Scope Items-
For Advanced scenarios, Freight unit is created even before creating delivery . But for Basic scenarios, delivery needs to be created first to create Freight UnitAdvanced scenarios involve a licensing cost while Basic scenarios do not involve any additional cost
For further information on the topics , you can go through below links-
6W2 – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/6W2/?region=DE
6W3 – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/6W3/?region=DE
6W4 – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/6W4/?region=DE
7IV – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/7IV/?region=DE
7IW – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/7IW/?region=DE
7IX – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/7IX/?region=DE
With SAP S/4HANA Cloud, Private Edition 2023 FPS02, you can now activate TM scenarios as part of best practice content and jumpstart your implementation. These scenarios were available only for Public Cloud before this release.Before going into details of these scenarios , lets have a quick look on what exactly is SAP Transportation Management.SAP Transportation Management (SAP TM) supports you in all activities connected with the physical transportation of goods from one location to another. You can use SAP TM to perform the following activities, for example:Create forwarding orders for your ordering partiesTransfer orders and deliveries from an ERP systemCreate freight bookingsPlan the transportation and select carriersTender transportation servicesCalculate the transportation charges for both the ordering party and the supplier sideConsider foreign trade and dangerous goods regulationsIn the supply chain network, SAP TM helps the businesses to plan their transports by choosing the optimized mode of shipment, best carrier selection based on rating, cost, efficiency etc., thereby also choosing the optimized routes. SAP TM allows manual and automated Tracking & Tracing of shipments by monitoring and reporting events in real time.Transportation Management System helps to improve operations, drive business, and provide better service to customers. In doing so, the TMS offers numerous benefits that help the company move freight from origin to destination accurately and cost-effectively.Now lets look at the Available Scenarios in SAP S/4HANA Private CloudThere are total 6 scope items for Transportation Management. 3 of them are Advanced and 3 of them are labelled as Basic depending on the functionality and licensing cost.SAP TM mainly is divided into Transportation Planning, Transportation Execution, Settlements and verifications. Advanced TM6W2 – Manual Transportation Planning || S4HANA PCE 2023 FPS026W3 – Transportation Execution || S/4HANA PCE 2023 – FPS026W4 – Freight Settlement || S/4HANA PCE 2023 – FPS02Basic TM7IV – Manual Transportation Planning – Basic || S4HANA PCE 2023 FPS027IW – Transportation Execution – Basic || S/4HANA PCE 2023 – FPS 027IX – Freight Settlement – Basic || S/4HANA PCE 2023 – FPS 02Manual Transportation Planning – 6W2/7IVManual transportation planning allows you to create or change a transportation plan. To create a transportation plan, you assign transportation demands (such as freight unit stages) to transportation capacities (such as equipment types, for example, truck types, rail car types, or container types). The system creates capacity documents (freight orders or freight bookings). Scheduling runs automatically after you perform a planning activity for a freight order. Manual planning is done in the Transportation Cockpit app.Transportation Execution – 6W3 /7IW With this process, you execute and track the transportation process for your freight documents. You can set the relevant statuses to track the arrival and departure at your locations and set the checkout status to enable freight cost confirmation. You can set statuses for the entire document, as well as for individual stages and locations.Freight Settlement – 6W4 /7IX Freight costs calculated for the freight documents (freight orders and freight bookings) are to be posted in financial accounting to record such costs in accounting as accruals and to pay the carriers or freight forwarders. Once the freight documents are in a status in which the transportation has been initiated or completed, the freight costs can be posted to financial accounting. If there are errors during the posting of accruals, the freight documents can be monitored for such posting errors. The invoice received from the carrier or freight forwarder is verified against the expected costs calculated in the freight document. Depending on the number of invoicing parties involved for a freight document, multiple invoices can be received from different carriers executing the transport. For example, for an ocean freight booking, you can receive invoices from different invoicing carriers to execute different stages of the ocean booking (for example, one for the pick-up, one for the main carriage, and another one for the delivery). During invoice verification, price variances and unplanned freight costs can be captured. Freight cost allocation capabilities are used to manage freight costs that occurred during the transportation processes. The costs are posted to a material valuation in an inbound process, and to an expense account (general ledger) in an outbound process.Now since we understood ‘what’ of these scenarios , lets have a look at ‘How’In order to initiate the TM processes, the pre requisite preceding documents need to be created, also referred to as ‘Business Conditions’Based on this preceding document (Business Condition), the inbound or outbound flow will be executed. This part of the process can be executed with scope items 2TX, BDD, BD9 and 3NR, as shown in the diagram. Inbound and Outbound flow can be executed for 4 modes of transport – Road, Rail, Ocean and Air.All the succeeding documents will be created as you execute the process – Freight Unit, Freight Order (Rail and Road), Freight Booking (Ocean and Air) and Freight Settlement Document.Inbound ScenarioThe following end to end process Transportation Management inbound consists of the scope items 2TX (Direct Procurement with Inbound Delivery) or BDD (2TX in this example) , 6W2 Manual Transportation Planning, 6W3 Transportation Execution and 6W4 Freight Settlement. Outbound ScenarioThe following end to end process Transportation Management outbound consists of the scope items BD9 Sell from Stock or 3NR Sales Scheduling agreements, 6W2 Manual Transportation Planning, 6W3 Transportation Execution and 6W4 Freight Settlement. . Difference between Basic and Advanced Scope Items-For Advanced scenarios, Freight unit is created even before creating delivery . But for Basic scenarios, delivery needs to be created first to create Freight UnitAdvanced scenarios involve a licensing cost while Basic scenarios do not involve any additional costFor further information on the topics , you can go through below links-6W2 – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/6W2/?region=DE6W3 – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/6W3/?region=DE6W4 – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/6W4/?region=DE7IV – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/7IV/?region=DE7IW – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/7IW/?region=DE7IX – https://me.sap.com/processnavigator/SolS/EARL_SolS-055/2023-FPS02/SolP/7IX/?region=DEAdministration Guide to Implementation of SAP S/4HANA Cloud Private Edition 2023 FP2 with SAP Best Practices Read More Technology Blog Posts by SAP articles
#SAP
#SAPTechnologyblog
