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Shipping - Basic Flow

HI guys,

Can anyone please tell me the flow of entire shipping in a simple way. Where, when and how is done.

Thanks in advance


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2 Answers

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    Former Member
    Oct 26, 2007 at 07:56 PM


    Organization in Shipping and Transportation


    Independent organizational entities, such as shipping points, are responsible for scheduling and processing deliveries to customers, as well as replenishment deliveries to your own warehouses.

    A delivery is always carried out by one shipping point only. The shipping point depends on the following criteria:

    Delivering plant

    Type of shipping (for example, train, truck)

    Loading equipment necessary

    Loading Point

    Shipping points can be subdivided into loading points. For example, ramp 1, ramp 2 and ramp 3 belong to the shipping point Forwarding depot.

    The following figure displays a possible organization in shipping.

    Transportation Planning Point

    The transportation planning point is an organizational unit in Logistics, responsible for planning and processing transportation activities.

    It organizes the responsibilities in a company, e.g. according to shipment type, mode of transport or regional departments.


    The shipping point is assigned to a plant.

    Loading points are assigned to shipping points.

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    Former Member
    Oct 26, 2007 at 07:58 PM


    Route can be determined in sales order with the help of 5 parameters: depart country, shipping conditions in customer master record, transportation group in material master, destination country, and weight group.

    Weight group plays a vital role. The purpose of route determination is like in scenario's where company will ship goods to the customer in various ways not only that it has optional of having n number of routes select the best one & based on his customer priority (time & money.) for sending samples company will go for air, for delivering ordered goods it can go for different mode of transportation & routes.

    Route Determination: Departure country zonedestination country zoneshipping condition+ transportation Group+Weight Group ( Optional)= Route.(0VRF)

    Plant determination in the sales order: System will search first for Customer material Info Record, if it is not maintained there it will check for customer master record, if it is not maintained here also system will search for material master record..

    Configuration part:

    SPRO > Routes Basic shipping functions  Shipping -LE -

    Define Routes:

    Define mode of transportation

    Define shipping types.

    Assign shipping types to mode of transportation.

    Define Routes and Stages

    Maintain Stages For All Routes

    Route Determination:

    Define Transportation Zones

    Maintain Country And Transportation Zone For Shipping Point

    Define Transportation Groups

    Define Weight Groups

    Maintain Route Determination in the combination of

    a) Departure country/Departure Zone - maintained in shipping point configuration

    b) Shipping condition from the sales order

    c) Transportation planning group maintained in General/Plant view of material master.

    d) Destination country/Transportation zone maintained in General view -Address of Customer master of Ship to Party.


    Shipment cost in shipping contains create the shipment cost doc., process the shipment, monitor the shipment, calculate the shipment and settle the shipment.

    Shipment cost doc. contains calculate the shipment, assign to accounting, transfer to FI and settle the shipment cost.

    Shipment cost doc. divided into header, item and sub item data.

    We need to assign transportation planning point to com. code to calculate and settle the shipment cost.

    1. Define date rules:- In this IMG activity you define the date rules that determine which dates are chosen for determining the pricing date and the settlement date and the sequence in which they are accessed. The dates can be, for example, the end of transportation planning or the start of lading.

    2. Define and assign tariff zones:-In this IMG activity, you define the tariff zones and assign postal code areas to the tariff zones for each organizational key. The tariff zones are represent geographical influencing factors during the calculation of shipment costs.

    3. Define no. ranges for shipment cost:-In this IMG activity you define the number interval for the shipment cost documents. When creating a shipment cost document, a unique number is generated. The number comes from the number range that you create in this menu point as the internal number range.

    You can also create an external number range. The option to specify a number from the external number range when creating the shipment cost document is, however, not currently supported.

    4. Shipcost types and item cat.:-In this IMG activity, you define the shipment cost types and item categories that contain all important control features for the shipment cost document, such as:

    Number range

    Status requirements for the shipment documents

    Parameters for shipment costing

    Parameters for shipment settlement

    5.shipcost relevance and default for shipcost types:-In this IMG activity you assign the shipment cost types to the shipment types and set an indicator to show whether the cost type is relevant to shipment costing. You do this for every cost type in every shipment type. .


    For the 'individual shipment' shipment type, you set the indicator for the cost types shipment header and leg, but not for the cost types border crossing or load transfer point. You also assign a shipment cost type to the shipment type. When you create a shipment cost document, this shipment cost type is determined automatically.

    6. Settlement:-

    Certain control elements must be maintained for calculating shipment costs with the transportation service agent and for forwarding of shipment costs to FI and CO.

    you can maintain these control elements and carry out the corresponding assignments.

    -- Assign purchasing data

    --maintain acc. assignment cat.

    --automatic G/L acc. determination

    --automatic determination of CO assignments

    --invoices and credit memos

    The process of calculating the shipment costs for a shipment.

    Shipment costs:

    The total costs involved in the shipment of a product. Not just pure freight costs, but also cleaning costs, insurance, and other costs as well

    check this link


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    • Former Member

      HI Prashanth,

      Thanks for your quick reply. Will you tell me more about freight calculation, settlement of the freight cost etc..