Logistic execution step by step config

Index / Content
Part I (this post is covering part I)
1. SAP Language
2. Transportation – Shipment
3. Master Data
4. Maintain Transportation Planning Point
5. Define Routes
6. Define Modes of Transport
7. Define Shipping Type
8. Defining Transportation Connection Point
9. Defining Transportation Zones
10. Define Transportation Groups
11. Setting up Weight Groups
12. Define Routes and Assigning Routes
13. Definition of routes
14. Maintain Stages for all Routes
15. Determining Routes
16. Route Determination in Sales Order
17. Configuration of Shipments
18. Maintain Transportation Relevance
19. Set Up Transportation Planning Points
20. Define Shipment Type
Part II
1. Transportation – Shipment Cost Document
2. Shipment Cost Document Structure
3. Define Date Rules
4. Define and Assign Tariff Zones
5. Define and Assign Activity Profile
6. Define Shipment Cost types
7. Define Item Categories:
8. Assign Shipment Cost Type and item categories
9. Maintain Shipment cost relevance and default for shipment cost type
10. Define shipment cost relevance for shipment type
11. Pricing
Part III
1. Define and assign shipping type procedure group
2. Define and assign item procedure group
3. Define Service Agent Procedure Group for Shipment Costs
4. Maintain Price Procedure
5. Define Pricing Procedure Determination for Shipment Costs
6. Maintain Condition Type
7. Settlement
8. Assign Purchasing Data
9. Account Determination
10. Group Together Valuation Areas
11. Define Valuation Classes

12. Automatic G/L account Determination
13. Automatic determination of CO assignments
14. Business Process Procedure
15. Create transportation condition records
16. Create Delivery Document
17. Create Shipment Document
18. Creating Shipment Cost Document & Cost Settlement
19. Effects of Shipment cost settlement and related documents
20. User-Exits
21. BADIs
SAP Language
Here are some common terms that you will see while dealing with LE-TRA in SAP:
Forwarding Agent / Service Agent – Agent who provides the transportation, also known as
Carrier or Logistic Service Provider. This is usually (but not always) the vendor who will be
paid by the freight service.
Routes – The route is a component of LE-SHP and plays an important role in the Shipping
process creation and planning, determining itinerary (the leg or stage in the shipment),
determines Means of Transport, like truck, train, plane or ship and they usually carry a
departure point information (e.g. Shipping point) and Destination Point (port of destination,
customer and etc).
Handling Unit – The handling unit is the packaging in the shipment that will contain the
materials/products that are been transported. For example, in a shipment you may have all
your products packed in a Container, then the container is your handling unit. However,
depending on the size of the shipment you may have multiple containers and those containers
are loaded in a big vessel, then besides the containers, you will also have a vessel as a
packing unit, or a handling unit. The handling unit in a shipment can also be called
“Equipment”. The Handling Unit plays an important role in the shipment cost calculation, they
are represented as sub-items in the SCD items.
Shipment – The Shipment document containing details based on predecessor deliveries,
including who are the service agents, the routes, what are the stages, and the deadlines for
planning and execution times. This document is the pre-requisite to the Shipment Cost
Document.
Shipment Type – Shipment type contain primary settings to the shipment document such like:
the Direction (inbound or Outbound), number range, partner information, stage determination
procedure and etc.
Shipment Cost Document – This document is created subsequent to the Shipment, using this
document as reference. The Shipment Cost Document (SCD) contains the necessary data to
pay the service agent (agreed rates, price, invoice party and etc.) and also accounting data
(G/L Account, Cost Center and etc.) This document when created correct will be used in most
of the times to trigger an accrual in the system.

Shipment cost type and item categories – Shipment cost types and item categories carry
settings to control the shipment cost document, like number range, status requirements for the
shipment documents, shipment costing settings, shipment transfer/settlement settings.
Rates – Rates are loaded in the system via Condition Technique (using condition types
predefined) and they are carried over to the SCD when the document is created. The rates can
be created in more than one condition to the same document, for example if you want
breakdown the agreed freight cost with the service agent between what is freight service, what
is toll, what is fuel surcharge and etc.
Transportation Planning Point – Aka. TPP, it is an organizational level in Logistics that is
responsible for planning and processing shipments. They can also be represented by a group
of people inside of the organization, for example, TPP for mode Ocean, TPP for mode Truck
and etc, to segregate the Logistics Planners and also perform sap security segregation. Each
Shipment is assigned to a TPP.
Transportation – Shipment
Master Data
A. Business Partner Master Data > They are the Service-Agents (Freight-Forwarder),
Ship-to, Sold-to, Bill-to, Brokers and Customs Agents, Carriers, Customers, Vendors
and etc.
B. Material master data > You can’t have a shipment without products (material). The
material master data will define the products that will be transported and also they
represents the handling unit (packaging material). All products and materials
transported using the transportation system (shipments) must have a material master
data.
C. Organizational master data > To the whole process flow from Sales Order to
Delivery, Shipping, Shipment Cost Document, Invoice Payment and etc., system
will need to have the following Organization Level created and properly
assigned: Business areas, Sales Organization, Sales Area, Distribution Channels,
Transportation Planning Points, Plants, Routes, Shipping Points, Purchase
Organization, Purchase Group, Controlling Area and etc.
Maintain Transportation Planning Point
Transaction SPRO or SM30
Path SPRO > Enterprise Structure > Definition > Logistics Execution > Maintain transportation
planning point
Table/View V_TTDS
Also called “TPP”, it is an organizational level in Logistics that is respons ible for planning and
processing shipments.They can also be represented by a group of people inside of the organization, for
example, TPP for mode Ocean, TPP for mode Truck and etc, to segregate the Logistics Planners and
also perform sap security segregation.Each Shipment is assigned to a TPP.
A Transportation Planning point can be responsible for multiple Shipping Points and the
Shipment is assigned to one transportation planning point only, which can contain multiple
deliveries assigned and those may belong to multiple shipping points that belongs to the
same transportation planning point.

In the same SPRO path, you assign the transportation planning point to a company code,
as per screenshot above. This assignment is required to when the Shipment triggers a
Shipment Cost Document, then the freight costs calculated are posted to the proper
company code (see more below Shipment Cost Document and Settlement details).
Define Routes
The route is a component of LE-SHP and plays an important role in the Shipping process creation and
planning, determining itinerary (the leg or stage in the shipment), determines Means of Transport, like
truck, train, plane or ship and they usually carry a departure point information (e.g. Shipping point) and
Destination Point (port of destination,customer and etc)..
Transaction 0VTC
Path SAP Easy Access > Logistics > Logistics Execution > Master Data > Transportation >
Routes > Define Routes > Define Routes and Stages
Table/View TVRO
To create the routes, you need to do the following:
 Inform the modes of transport that will be assigned to that route
 Inform the shipping types that are allowed in that route (for example, you will not
allow ocean in a route that is from New York 5th Avenue to New York Broadway
St.)
 Inform the transportation connection points and maintain the relevant data on the
detail screen
 Inform routes and route stages
You can also maintain the route stages for several stages.
Define Modes of Transport
Transaction 0VTB
Path SPRO > Logistics Execution > Transportation > Basic Transportation Functions > Routes >
Define Routes > Define Modes of Transport
Table/View V_TVTR_COM
1. Define which modes of transport are relevant to your process
2. Assign the mode of transport to a mode-of-transport type. The
mode-of-transport type is responsible for classification of modes of transport in
DG management.

Define Shipping Type
Here you will inform what are the shipping types and their mode of transport. See below in
the screenshot some example of Shipping Types. They are suggestions only. Create them
according to your business requirements
Transaction 0VTA
Define Routes > Define Shipping types
Table/View V_T173_COM
To create The Shipping Types you have to do the following steps:
1. Define the shipping types
2. Assign one or more modes of transport to each shipping type
3. Assign the shipping types to a shipping type group. (This is important to
automatically determine the freight pricing procedure that will calculate the
freight costs and freight rates, see more below in the Shipment Cost
Document Section).

Defining Transportation Connection Point
TCP is the place where goods are received, issued, re-shipped or processed. Those
processes can include activities like customs clearance or railway car cleaning, railway
station for example. For each TCP, you can define the type (for example: load transfer
point, airport or border), who is the responsible customs office, calendar and stopover
time. You can also refer it to a plant or shipping point, a customer or vendor or to an
address.
Transaction 0VTD
Define Routes > Define Transportation Connection Point
Table/View V_TVKN_COM

Defining Transportation Zones
It is where you will specify all the regions that you plan to cover with your routes. The
routes will be from a departure zone to a destination zone.
There are three kinds of transportation zones:
• Direct zone > Can be allocated to explicit locations
• Postal code zone > Contains all locations corresponding to the valid postal code areas of
a particular country
• Region zone > is defined by entering a country and region, and contains all locations in
that region
You can also have a mixed zone which is a combination of the types above.
Transaction OVR1
Path SPRO > Logistics Execution > Shipping > Basic Shipping Functions > Routes > Route
Determination > Define Transportation Zones
Table/View V_TZONE
The zones you set up here will be used in the master data. The location of each
customer and vendor will be identified using the Transportation Zone field on the
Address tab in the customer (or vendor) master record.

You can also specify the zones for each of your shipping points here:
Transaction OVL7
Determination > Maintain Country and Transportation Zone for Shipping Point
Table/View V_TVST_RF
Select the shipping point, and specify the country and transportation zone.

Define Transportation Groups
The transportation group specify the materials that will have similar requirements for
transportation. For example, you can group products that are bulk or non-bulk, Pallet
or Box and etc. You assign those groups in Material Master Records.
Transaction OVSY
Determination > Define Transportation Groups
Table/View V_TTGR
Setting up Weight Groups
If the weight of the delivery plays a role in route determination, you can set up weight
strategy here.
Transaction OVS8

Determination > Define Weight Groups
Table/View VC_TVLG
 First you need to Maintain Weight Group, creating a new weight group with the
corresponding description.
 Then you need to maintain details for Weight Group where you will specify the
maximum weight that is allowed in each weight group and then when the
delivery is created, SAP will take the weight in consideration and determine
the right route based on the rules you created. If you decided not to use this
feature, the route determination will take place in the sales order and be
copied into the deliveries.
Define Routes and Assigning Routes
Here is where you will define routes, route stages and maintain the transportation
connection point, all them required for shipment stages strategies.
Definition of routes
First you need to define the routes, doing the following steps:
 List the routes that are relevant to your process/company.
 Create the routes
 If necessary/required, inform additional data to the route, which can be:
 Shipping type > You can assign a shipping type to the route, to the
preliminary leg, and to the subsequent leg.
 Transportation service agent
 Transit time
 Transit planning lead time
 Factory calendar, work time
 Drivingtime (transittime minus breaks, distance)
 You can assign a mode of transport to the routes for processing export
activities.
Transaction 0VTC
Path SPRO > Logistics Execution > Shipping > Basic Shipping Functions > Routes > Define
Routes > Define Routes And Stages
Table/View V_TVRO_COM
Identification: The identification is the description of the route and the Route ID, which is a
complement to the description. If not required, I recommend repeating the description
here.
Processing: If the route is managed by a specific vendor, you can inform the Service
Agent here. By doing this, when the shipment is created to that route, the vendor (service
agent) will be automatically proposed, saving some time from logistics planner, who will
not need to inform it manually. You can also inform the Shipping Type field here. Another

very important field here is the “Rel.transport”, which will determine if that route when
used in a delivery document can be used to create a Shipment.
Scheduling: Most important fields in this section are:
 Transit Time: Transit Time is the total time that the products will take to arrive at
the customer following that route. This time is taken into consideration to planning
and determining the date on which the product will reach the customer (and also
when it needs to leave the plant in order to meet the customer’s requested
delivery date). It is represented in calendar days, 2 decimals.
 Trav.dur: Travel Duration is represented here in hours and minutes, is
a subset of the total transit time seen above. It is the time taken for the actual
travel along the route. This time is not used for delivery scheduling purposes.
 TransLdTm. Transportation Lead Time is the time needed for planning
and arranging transportation considering
Maintain Stages for all Routes
You can process stages for several routes at the same time. So, instead doing it one by
one, use the transaction or path below to maintain it in a more efficient way.
Transaction 0VTE
Path SPRO > Logistics Execution > Shipping > Basic Shipping Functions > Routes > Define
Routes > Maintain Stages for all Routes
Table/View
In the example below, I selected 3 route stages (selecting the checkbox) and I click in the
“change” icon (the pencil). SAP pops-up the “attribute proposal for selected route stages” and
whatever you maintain in there, it is going to be maintained to all the selected stages, lights will

change from red to yellow. Then you need to “Save” and the lights will change from yellow to
Green to confirm the modification.
Determining Routes
To the route be automatically determined, the following parameters are taken in
consideration:
 Country and departure zone (Shipping Point address)
 Country and destination zone (ship-to party address)
 Shipping condition (It is informed in the Sales Order and carried over to the
subsequent documents)
 Transportation group (from the material master)
In the deliveries routes determination, you can also add weight groups to the list of
controlling factors, if you are using weight as a criteria for routes determination, which is
optional as explained more above.
Transaction 0VRF
Determination > Maintain Route Determination
Table/View VC_TROLZ

If you are using weight as a criteria to determine the route (as explained more above) here is
where you will enter the weight group that you created, so to this combination of 4 elements
explained above + the weight of the delivery, the route will be determined automatically.
Route Determination in Sales Order
The route is automatically pulled to the Sales document according to the combination
below:
1. Departure zone or country of the shipping plant
2. Destination zone or country of the Ship-to-Party/Customer.
3. Shipping condition from Customer master.
4. Transportation Group from Material master.
5. Weight Group (if in use)
The route can also be manually entered or overwritten when you create or change a Sales
Order document and also it can be re-determined in the Delivery document based on
weight (weight group) if you are using the weight as a criteria (explained more above).
Scheduling and Delivery dates takes into account the following times: Transit Time
/ Loading Time / Pick/Pack Time / Transportation Lead/Planning Time.

Configuration of Shipments
See below what is required to configure the Shipment.
Maintain Transportation Relevance
Before configuring shipment documents, it is necessary to select the relevance to
transportation.
Transaction 0VTR
Path SPRO > Logistics Execution > Transportation > Shipments > Maintain Transportation
Relevance
Table/View V_TVLK_TR / V_TVLP_TL / V_TVRO
 Delivery Type (V_TVLK_TR)
 Delivery Item Type (V_TVLP_TL)

Set Up Transportation Planning Points
Once the transportation relevance is defined, you will need to configure the organizational
structure that will run after transportation, for example, the shipment documents are
created using the transportation planning point (which is tied to other organizational
elements, such as shipping points, plants and etc.)
Define Shipment Type
The shipment types are related to the different ways of transporting and processing
products, either from sales or stock transfer orders and etc. There are even situations
where a Shipment Type for “Inbound” processing is required, for goods coming in.
There are 3 distinct transportation categories::
 The Individual shipment when one or more delivery documents are assigned and
transported by a single transport mode from a departure point to a destination
point.
 The Collective shipment where one or multiple deliveries are transported by one
single transport mode from one or more departure points to one or more
destination points.
 The Multi-modal shipment when deliveries are transported by several different
transport modes between one or more departure points and one or more
destination points.
Transaction OVTK
Path SPRO > Logistics Execution > Transportation > Shipments > Define Shipment Types
Table/View V_TVTK

Here I will discuss some of the main fields:
Number Systems: It is where you maintain internal or external number range
assignment that will be used when documents are created.
Document Content: This section is where the core of the Shipment Type’s
configuration is. It is like the Shipment’s identity. See below some of the fields and
what they mean.
 Shipment Completion Type: Identify the type of the shipment, if this is an inbound or
outbound shipment, if it is loaded or empty.
 Shipping Type: This identifies if the shipment is road, air, ocean, rail or any other
means of transport you have created in your system.
 Process Control: Identifies how the shipment type will be performed, if it is individual
shipment or collective shipment, single mode of transport or multiple mode.
 Leg Indicator: The leg or stage is the representation of two transportation
connection points or a single connection point where a transportation is performed
(for example customs borders, loading transfer point). To each leg in a route it is
possible to define the section type that this leg belongs, that can be a
transportation, load transfer point or customs borders. It is also possible to identify
if the leg is primary leg, main leg, subsequent, direct or a return leg. In a direct leg
shipment type for example, the process will be performed in a single shipment but
if it is a primary leg, main leg or subsequent leg, it will have more than one
shipment connected to the delivery and the shipments will be linked to each other.
And that’s where you can use the ShTypePrelimLeg and SubseqLegShType to
indicate the shipping type to those preliminary or subsequent legs.
 Determine Legs: A rule to assign the legs in a shipment can be defined here. Let’s
say you pick 1: Legs Determined according To Departure Point & Itinerary in a
collective shipment. Then the leg determination will be pulled to the shipment
based on departures and destinations sequence

This is the end of the Part I. Transportation – Shipment. Check here the Part II. Transportation –
Shipment Cost Document and here the Part III. Transportation – Shipment Cost Document (Cont.)

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Logistic execution step by step config

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Logistic execution step by step config