Issue

When freight is being organised, certain shipments can be consolidated into a single container, truck, vessel, etc. When this is from a single company code then the system can handle this. To be able to support this process from multiple company codes then enhancements need to be built.

Recommendation

In several meetings it was requested to be able to consolidate for multiple company codes. There seems to be a need and opportunity to make this function available.

Background & Context

In consolidation scenario's multiple deliveries can be combined to optimise transportation capacity. There can be many scenario's where cargo can be combined into one order, e.g. multiple deliveries into one container, milkrun scenarios, multi containers combined into one freight booking, etc. To make this possible for multiple company codes then this function need to be custom built.

Description of a scenario:

Lets consider a simple scenario where cargo for one customer is combined into one container.

1. Cargo is picked up at plant for company code 1100.
2. Additional cargo is loaded into the same container at plant for company code 1200.
3. Additional cargo is loaded into the same container at plant for company code 1300.
4. Truck delivers container at port.
5. One Freight Order is created for transportation of the entire shipment
6. Transportation charges are calculated on the Freight Order.
7. Cost Distribution (standard SAP) is distributing the costs based on cargo weight.
8. Freight charges are posted in a Freight PO for invoice verification. This is on company code 1100 only.
9. At the same time when the Freight PO is posted, the system is posting Settlement Management Documents (SMD) which assign a proportion of the transportation charges to each company code. This is based on the Cost Distribution. (standard SAP).
10. For the SMD documents for company code 1200 and 1300, the system will create an Inter-company Settlement (custom built) to compensate company code 1100 for the freight costs to be paid to carrier.
11. When the invoice is received, then this is verified and posted against the Freight PO in Company Code 1100.
12. Invoice differences are posted against price differences account (standard SAP) or additional SMD documents are generated to distribute the invoice differences (custom built).

Assumptions

n/a

Constraints

n/a

Impacts

To make this function available, this would be custom built.

Business Rules

n/a

Options considered

Evaluation

Not available. It is up to the process owner to choose the most desirable solution.

See also

n/a

Change log

Workflow history