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Former Member

Freight on 3rd party delivery

Hello everyone,

We have a number of outside processors who are not on SAP. We get orders and pass the PO to the processor who ships the goods directly to the ship to party in our order. We need to capture those freight costs into our bills to the sold to. Is there any way of doing an automatic determination of freight costs for this?

Of course, we have all the conditions set up in our system and use transportation functionality. Will all these processors have to be defined as Transportation planning points and attached to our shipping points and company code for processing the SCDs? If so, what exactly needs to be done for it so that the system captures the freight on the basis of the conditions in our SAP system (we have the prices set up on the basis of weights, departure zone (our shipping point) and dest. zone) - the departure zones in these above instances can definitely differ as the vendor can be in a different state (our dep. zones are states themselves).

Better still, is there any other way out than to set up tpt. planning points as there are simply too many. The shipping confirmation from the vendor to us is a manual process (comes as a email).

Thanks a lot.

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1 Answer

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    Former Member
    Mar 16, 2007 at 02:14 AM

    Looks like, yours is a third party order process.

    Regarding your freight costs: You can define two types of frieght condition types and add to the pricing procedure.

    1st Freight condition is an automatic condition type determined based on the your criterias (like, based on quantity, or weight or could be a fixed amount etc).

    2nd Frieght condition is an manual condition type and the frieght amount can be manually entered based on your own calculations or criteria.

    Here you might not require transportation palnning points. You can frieght determination at the item level based on the routes as routes are determined for each line item based on SC, TGrp, Depcty/depZ , Dest cty/destZ etc.

    Hope this helps.

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    • Former Member Former Member

      Hi Rao,

      How would that work? The order comes from a customer which triggers off a PO to the vendor to ship directly to the customer.

      The freight conditions in our system are set up for the customer ship to from us, lets say, Detroit to the customer ship to in e.g. Chicago. The vendor may be in Seattle (or anywhere else depending on the material and the preferred vendor and its PIRs). I am not sure how the SCD can be created in this case. Incoterms on the PO will come in from the PIR of course, but they will be for our vendor (from Detroit to Seattle) - the freight SCD we need to create is for Atlanta to Chicago - the vendor is NOT on SAP and in any case, is not our company, it is a 3rd party supplier. How do we create the SCDs here and ensure the freight values are passed to the bill we create for the Bill to of this Chicago customer?

      Thanks for your help.