Shipment cost processing::

Shipment Cost Processing

Overview
Shipment Cost Processing contains the functions for calculating and settling shipment
costs in transportation.
Purpose
The purpose of this document is to point out control elements that are necessary for
carrying out shipment costing, settling shipment costs with the transportation service
agent and forwarding of shipment costs to financial accounting.
3. Pricing
Pricing is the basis for shipment cost calculation in a shipment document. The system
uses standard condition technique for the calculation of shipment costs.
Condition type is used to maintain the price elements such as prices, surcharges,
discounts, taxes or, freight, and are stored in the system in condition records.
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing > Pricing
Control > Define Condition Type

3.2 Define and assign Pricing Procedures

Below are the prerequisites for Pricing procedure determination
1. Create a new pricing procedure by copying a similar pricing procedure.
Specify a key of up to 6 characters and a text description.
Specifiy the condition types for a determination procedure in the sequence in

which they are to be used.

Maintain the lines of the pricing procedure.
2. Define the service agent procedure group for determining the pricing procedure and
assign service agents to it.
3. Define the item category procedure group for determining the pricing procedure and
assign item categories to it.
4. Define the shipping type procedure groups for determining the pricing procedrue and
assign shipping types to it.
5. To each transportation planning point, assign a permitted combination of:
item category procedure group
service agent procedure group
and shipping type procedure group.
Menu Path: Logistics Execution > Transport > Shipment Costs > Pricing > Pricing
Control > Define And Assign Pricing Procedures

3.2.1 Pricing procedure determination

Pricing procedure is determined for the shipment cost calculation based on the
Transportation planning point, shipping type, service agent and shipment cost item.

Process
Flow
Calculating
shipment
costs
involves the
following
steps:
1. The
system
determines
a pricing
procedure
for the
shipment
cost item
(for
example, a
shipment
stage) using transportation planning point, service agent, shipment cost item category and
shipping type as criteria.
2. The system determines the shipment costing calculation basis for the individual
condition types in the pricing procedure. This controls whether costing is carried out per
container, for example, or per delivery item (the shipment cost sub-items).
3. The system then searches for a valid condition record in the pricing procedure for the
first condition type.
4. The priority of the criteria the system uses to search for condition records is
determined by the access sequence. For example, you can set the system so that it first of
all checks whether condition records of the correct condition type exist for a combination
of freight class and forwarding agent. If this is not the case, then the system could check
whether condition records exist just for the forwarding agent (set as the second point in
the access sequence). The system continues to search until it has found a valid condition
record.
5. The system can use the information stored in the condition record to determine
values such as the basic freight.
6. The system now searches for the second and then the third condition record, until
values have been determined for all condition types in the pricing procedure.
7. The values of the individual condition types are cumulated as specified by the pricing
procedure. The final amount calculated is copied to the shipment cost sub-item.
The following figure describes the steps made by the system when calculating shipment

costs.

4.

Settlement
The settlement of shipment costs with the service agent is carried out per shipment cost
item.
Below are the customizing settings to be maintained for calculating shipment costs with
the transportation service agent and for forwarding of shipment costs to FI and CO.
4.1 Assign Purchasing Data
For settlement, we have to assign the organizational units in the shipment to the relevant
organizational units in purchasing.
These settings are necessary for creating accruals. The accruals are posted using service
entry sheets. As the service entry sheet is based on purchase order, purchasing
organizational units are needed for service procurement.
We have to assign purchasing organization, purchasing group and plant for the
combination of transportation planning point and shipment cost type.
Menu Path: Logistics Execution > Transport > Shipment Costs > Settlement > Assign
Purchasing Data

4.2 Maintain Account Assignment Category

The relevant setting helps in determining which fields are assigned during shipment cost
processing as mandatory, optional, display or greyed-out fields.
Menu Path: Logistics Execution -> Transportation -> Shipment costs -> Settlement ->
Maintain account assignment category.

4.3 G/L Account Determination

G/L account determination is carried out automatically. The following parameters are
used for determination:
Chart of accounts
Valuation grouping code
Transaction key
Account grouping
Valuation class
In the case of shipment cots, the transaction key set to 'GBB' by the system.
Menu Path: Logistics Execution > Transport > Shipment Costs > Settlement > Automatic
G/L Account Determination