Jan-2015
SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT
Transportation Configuration Transportation Management covers the complete transportation process: create, execute, consolidate, and monitor shipments. With mySAP ERP, you can maintain high levels of customer satisfaction, improve capital efficiency with better productivity in logistics, and reduce costs by lowering inventory levels and consolidating shipments through of the following business activities: Create optimized transportation plans, execute plans, and monitor shipments to deliver products on time and on budget. Apply flexible options for consolidating deliveries and orders into shipments, including rule-based automation, manual consolidation, and collaborative order combination through the Internet. Manage the multiple processes and reports required for foreign trade.
Transportation planning - Optimize shipments; assign carriers to shipments, and tender shipments to assigned carriers. You can now carry out transportation planning and shipment completion using a new organizational unit, the transportation planning point. Basically, the transportation planning point consists of a group of employees responsible for organizing transportation activities. Each shipment is assigned to a specific transportation planning point for transportation planning and shipment completion. You must define the various transportation planning points used in your organization in Customizing for Corporate Structure before they can be used to perform transportation functions. You can define this organizational unit according to your company’s needs, for example, according to geographical location or mode of transport.
Transportation execution - Select carriers, calculate freight costs, settle shipment costs, and print documents. Use denied-party and embargo lists when shipping internationally.
Freight costing - Calculate and settle freight costs based on actual shipments and current rates, and use this information to invoices. Incoming shipments in Materials Management based on purchase orders and shipping notifications · Outbound shipments in Sales and Distribution based on sales orders and deliveries
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used transportation module There are various and terminologies associated with the transportation module with which one needs to be familiar
Transportation Planning Point.
Shipping Type.
Route.
Shipment Type. The shipment type contains all the important control features for a shipment, such as the number range, whether the shipment is inbound or outbound, how leg determination is performed, and which leg indicator has been set for a shipment of this type. You can also enter a selection variant for the shipment type. The values defined in the variant appear on the selection screen when you create a shipment document of this type. The system s the following shipment types: Individual shipment Collective shipment Transportation chain Individual shipment
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT An individual shipment includes One or more deliveries One point of departure One destination One mode of transport Collective shipment A collective (or milk-run) shipment includes One or more deliveries Several points of departure Several destinations One mode of transport Transportation chain A transportation chain is useful if you are dealing with deliveries that will be transported using multiple modes of transportation (and are thus processed by different departments at the transportation planning point). Transportation Chain
Shipping Type Procedure Group.
Shipment Cost Type.
Item Category Shipment Cost.
Item Determination Procedure Group.
Pricing Procedure for Shipment Cost. The shipping document is the central element of transportation planning and shipment completion. It contains all the information necessary for carrying out transportation. shipment documents to: Combine deliveries into one inbound or outbound shipment
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT Specify shipment stages Legs Border crossing points load transfer points Assign goods to handling units Assign service agents Specify planned transportation deadlines Record actual transportation deadlines Specify output required for transportation (such as shipping papers or EDI messages) Define transport-relevant texts Basic Transport Contract (INCO) The meaning of trade vary from country to country. To avoid confusion, standard called Inco have been derived & published by the International Chamber of Commerce (ICC) to make the of sale clear and precise. Inco provide a set of international rules for the interpretation of the most commonly used trade between buyer and seller, in foreign trade. These describe in detail the rights, responsibilities, obligations and costs of the sellers and buyers in international trade, with particular reference to the transportation of goods. Some were designed with sea vessels in mind while others were designed to be applicable to all modes. The basic specifics that these address are 1. Cost Who is responsible for the expenses involved in a shipment at a given point in a shipment's journey 2. Control Who owns the goods at a given point in the journey 3. Liability Who is responsible for paying damage to goods at a given point in a shipment transit
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT Types of Inco There are 13 different divided into 4 categories. Each of these deals with different situations involving the movement of goods. The categories are: 1. E- Departure where sellers responsibilities are fulfilled when goods are ready to depart from facilities. It has minimum seller obligation. Here the seller makes the goods available to the buyer at the seller's own premises. It has only one category EXW (Ex-Works) (i.) Ex Works - EXW Ex means from. Work means factory, mill or warehouse, which are the sellers premises. Ex- Works means the seller's only responsibility is to make the goods available at the seller's premises, ie., the works or factory. The seller is not responsible for loading the goods on the vehicle provided by the buyer unless otherwise agreed. The buyer bears the full costs and risk involved in bringing the goods from there to the desired destination. The buyer is responsible for all transportation costs, duties, and insurance, and accepts risk of loss of goods immediately after the goods are purchased and placed outside the factory door. Ex-Works represents the minimum obligation of the seller. Some manufacturers may use the term Ex Factory, which means the same as Ex Works. The term is applicable to all modes of transport including multimodal. 2. F- beginning with F refer to shipments where the primary cost of shipping is not paid for by the seller. Seller has to deliver goods to a carrier appointed by buyer. The main characteristics of the F are that the main carriage is not paid by the seller. The in this category include: (i.) Free Carrier - FCA The Seller fulfills his/her obligations when the goods are delivered to carrier at a named point specified by buyer. The risk of loss or damage to the goods is transferred from seller to buyer at that time. If the place chosen is the seller's place of business, the seller must load the goods onto the transport vehicle; otherwise, the buyer is responsible for the main carriage/freight, cargo insurance and other costs and risks. Has been designed to meet the requirements of multi-modal transport such as containers, traffic by trailers and ferries. (ii.) Free Alongside - FAS
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT Seller transports the goods from his place of business, clears goods for export and places goods alongside ship on quay. The risk of loss then shifts to the buyer. Buyer is responsible for loading the goods onto the vessel and for paying all costs involved in shipping the goods to the final destination. Applicable only to sea and inland waterway. (iii.) Free on Board - FOB FOB states that the seller is responsible for delivering the goods from his place of business and loading them onto the vessel at the port of shipment named in the sales agreement as well as clearing customs in the country of export. As soon as the goods cross the ship's threshold the risk of loss is transferred to the buyer. The buyer is responsible for all transportation and insurance costs from that point, and also for clearing customs in the country of import. The seller pays the cost of loading the goods. Applicable only to sea and inland waterway transport. 3. C- beginning with C deal with the shipments where the seller pays for shipping, but without assuming the risk of loss or damage to the goods or additional costs due to events occurring after shipment and dispatch. The seller is also responsible for export customs clearance. Seller is not liable for risk/loss/damage to the goods during shipping. For the C , the main carriage is paid by the seller. These include: (i.) Cost and Freight - CFR Requires the seller to pay the costs and freight necessary to bring the goods to the named destination, but the risk of loss or damage to the goods as well as any cost increases are transferred to the buyer when the good the ship's rail in the port of shipment. Insurance is the buyer's responsibility. The buyer is responsible for the import customs clearance and other costs and risks.Applicable only to sea and inland waterway (ii.) Cost, Insurance & Freight - CIF Seller is responsible for delivering the goods onto the vessel of transport and clearing customs in the country of export. He is also responsible for purchasing insurance with the buyer named as the beneficiary.Risk of loss transfers to buyer as the goods cross the ship's rail. If these goods are damaged or stolen during international transport, the buyer owns the goods and must file a claim based on insurance procured by the seller. Applicable only to sea and inland waterway. (iii.) Cost Paid To - T Seller clears the goods for export, delivers them to the carrier and is responsible for carriage costs to the named place of destination. Risk of loss or damage to the goods transfers to the buyer when the goods have been delivered to the custody of the final carrier. Applicable to all modes of transport.
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT (iv.) Carriage and Insurance paid - CIP Delivery of goods and cargo insurance to the named place of destination at seller's expense. Applicable to all modes of transport. 3. D- Shipper/seller responsibility ends when goods arrive at some specific point. Seller has to bear all costs and risks needed to bring the goods to the country of destination. These are essentially arrival/delivery . The D are: (i.) Delivered at frontier - DAF The seller is responsible for all costs involved in delivering the goods to the named point and place at the frontier. The seller’s obligations are fulfilled when the goods have arrived at the frontier but before the customs border of the country named in the sales contract. Risk of loss transfers from seller to buyer at the frontier. The buyer pays the cost and bears the risk of unloading the goods, clearing customs and transporting the goods to the final destination. This term is applicable to all modes of transport. (ii.) Delivered Ex-Ship - DES The seller makes the goods available to the buyer on board the ship at the destination named in the sales contract. Seller is responsible for all costs and risks involved in delivering the goods to a named port of destination. Upon arrival, the goods are made available to buyer on board the vessel. The buyer must pay the cost of unloading the goods and any customs duties. Applicable only to sea and inland waterway transport. (iii.) Delivered Ex-Quay - DEQ The seller makes the goods available to the buyer on the quay or wharf at the destination named in the sales contract. Seller bears all costs and risks in transporting to the wharf (quay) at the port of destination. The buyer must pay duties, clear customs, and pay cost/bear risk from that point onward. Applicable only to sea and inland waterway transport. (iv.) Delivery Duty Unpaid - DDU The seller is responsible for all costs involved in delivering the goods to a named place of destination where the goods are placed at the disposal of the buyer. The buyer assumes risks of loss at that point and must clear customs, pay duties and provide inland transportation and insurance to the final destination. The term is applicable to all modes of transport. (v.) Delivery Duty Paid - DDP Seller bears costs up to named point of destination including customs clearance at the country of import. Under DDP, the seller literally provides door to door delivery, including customs clearance in the port of export and the port of destination. Thus the seller bears the entire risk of loss until goods are delivered to the buyer's premises.
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT The term is applicable to all modes of transport. Here, the seller is responsible for most of the expenses, which include the cargo insurance,import customs clearance, and payment of customs duties and taxes at the buyer's end, and the delivery of goods to the final point of destination, which is often the project site or buyer's premises. The seller may opt not to insure the goods at his/her own risk. Inco Classification Based on Transportation 1. Rules for Any Mode(s) of Transport (i.) EXW – Ex Works (named place of delivery) (ii.) FCA – Free Carrier (named place of delivery) (iii.) T - Carriage Paid To (named place of destination) (iv.) CIP – Carriage and Insurance Paid to (named place of destination) (v.) DAT – Delivered at Terminal (named terminal at port or place of destination) (vi.) DAP – Delivered at Place (named place of destination) (vii.) DDP – Delivered Duty Paid (named place of destination) 2. Rules for Sea and Inland Waterway Transport (i.) FAS – Free alongside Ship (named port of shipment) (ii.) FOB – Free on Board (named port of shipment) (iii.) CFR – Cost and Freight (named port of destination) (iv.) CIF – Cost, Insurance and Freight (named port of destination) Process Configuration Part-I Step: 1 - Maintain Purchase Organization SPRO - Enterprise Structure - Definition - Materials Management - Maintain Purchasing Organization.
Step: 2 - Create Purchasing Group
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT TCode: OME4 SPRO - Materials Management - Purchasing - Create Purchasing Group.
Step: 3 - Maintain Transportation Planning Point to Company Code. TCode: OVXT SPRO - Enterprise Structure - Definition - Logistics Execution - Maintain Transportation Planning Point.
Step: 3A - Assign Transportation planning point to company code. Step: 4 - Assign Purchasing Organizations to Company Code. TCode: OX01 SPRO - Enterprise Structure - Assignment - Materials management - Assign Purchasing Organization to Company Code.
Step: 5 - Assign Purchasing Organizations to Plant. TCode: OX17 SPRO - Enterprise Structure - Assignment - Materials management - Assign Purchasing Organization to Plant.
Step: 6 Create Vendor Group
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT TCode: OMSG & Number Range OMSJ SPRO - Financial ing - s Receivables and s Payables - Customer s - Vendor s Master Data - Preparations for Creating Vendor Master Data - Define Group.
Step: 8 Create Vendor TCode: XK01
Step: 9 Define Modes of Transport
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT TCode: 0VTB SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Modes of Transport
Step: 9A Define Shipping Types TCode: 0VTA SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Shipping Types Select New Entries and Assign the Shipping Type (e.g. Road or Train) and Assign Mode of Transport (Mdtr) and Assign Shipping type Procedure group.
Step: 9B Define Transportation Connection Point TCode: 0VTD SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Transportation Connection Point.
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Step: 9C Define Routes and Stages. TCode: 0VTCS SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Routes and Stages. Select the New Entries and Enter the Details - Then Select the Routes stages and define
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Step: 9D Maintain Stages for all Routes. SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Maintain Stages for all Routes.
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Step: 10 ROUTE DETERMINATION - Define Transportation Zone SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Transportation Zone.
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Step: 10A Maintain County and Transportation Zone for Shipping Point. SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Maintain County and Transportation Zone for Shipping Point.
Step: 10B Define Transportation Groups SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Define Transportation Groups
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Step: 10D Maintain Route Determination SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define Routes - Maintain Route Determination.
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SHIPMENTS SPRO - Logistics Execution - Transportation - Basic Transportation Function - Shipments Step: 11 Define Shipment Types SPRO - Logistics Execution - Transportation - Basic Transportation Function - Shipments - Define Shipment Types.
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT Step: 12 In Customer master data. In Address of General data. Enter the Transportation Zone id. And save you will get the route. The system takes into the following 4 conditions for determining the Route a.) The country and the Departure Zone of the shipping point b.) Shipping Conditions agreed in the sales document type or with the sold to party c.) Transportation Group assigned to the material d.) The country & Transportation Zone of the ship to party (in CMR) Process Configuration Part-II 1) Maintain transportation planning point through Menu as follows: SPRO - Enterprise Structure - Definition - Logistic Execution - Maintain transportation planning point 2) Defining modes of transport: SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Define routes - Execution Define modes of transport Use the standard configuration like:
Shipping type
Description
01
Road
3) Define shipping types : SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Shipping types
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PT
Description
Mdtr
STPG
01
Truck
01
0001
4) Define transportation connecting point : SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Connection points You can copy the standard point and make it FB01 as departure zone and FB02 as destination zone.
5) Define routes and stages. SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Transportation routes and stages Use the standard route and copy it as FB0001 and enter the departure zone and destination as what we created.
6) Defining Transportation Zone:
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes - Router determination Use the standard transportation zone depending on the route so as for the example use 0000000003 - Southern Region
7) Maintain country or transportation zone for shipping points SPRO - Logistics Execution - Transportation - Basic Transportation Function - Transportation zone for shipping point Assign Shipping point & route to the desired country.
8) Maintain route determination: SPRO - Logistics Execution - Transportation - Basic Transportation Function - Routes Determination Country of departure
Departure Zone
Country of destination
Destination Zone
And enter the data's needed like shipping condition 01, etc. Maintain Transportation relevance for
shipping point
sales document type
delivery types.
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9) Now create shipping types SPRO - Logistics Execution - Transportation - Shipments - Shipment 10) Define and assign traffic zones through menu as follows: TCode: T_76 SPRO - Logistics Execution - Transportation - Shipment - Shipments cost - Functions Tariff Zones Copy the standard to create TARIFF ZONE of own. Then assign already created transportation planning point to the tariff zone 11) Define and assign pricing procedures SPRO - Logistics Execution - Transportation - Shipment - Shipments cost procedures
Pricing
Price control
assign pricing
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12) Assign purchasing data: SPRO - Logistics Execution - Transportation - Shipment - Shipments cost - Settlement 13) Assignment Assign Transportation planning point to combination of
shipping condition
purchase organization
purchasing group
plants
14) Define Automatic G/L determination: TCode: OMWB SPRO - Logistics Execution - Transportation - Shipment - Shipment Costs - Settlement () Assign a GL .
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15) Automatic determination of CO assignments: TCode: OKB9 SPRO - Logistics Execution - Transportation - Shipment - Shipment Costs - Settlement - Determination of CO Assignments.
16) Maintain shipping point address. SPRO - Enterprise Structure - Logistics Execution - Definition - Define, copy, Delete, check shipping - Definition point Maintain the address.
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17) Creating G/L centrally. TCode: FS00 SAP Easy Access - Financial - General Ledger - Master Records - ing - ing Individual - Processing Centrally 18) Enter the G/L for your company code
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19) Create transportation condition records: TCode: TK11 Logistics - Master data - Transportation - Shipment cost – Price
Transportation Process Flow: 1. The system determines the pricing procedure for the shipment cost item-using
transportation planning point
service agent
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shipment cost item category 2. Calculation Basis 3. Condition Record 4. Access sequence. Step 1. Create Delivery Document TCode: VL01N With reference the sales order create a delivery using TCode - VL01N and pick the goods. Step 2. Create Shipment Document TCode: VT01N After the status of the delivery is open for transportation planning, it is possible to create a shipment document to schedule the transportation. Now create a shipment using TCode - VT01N (SAP Easy Access - Logistics - Logistic Execution - Transportation Transportation Planning - Create - Single document) and assign the delivery to the shipment document. Make sure to enter the carrier and other details before performing the transportation planning and execution. After the deliveries are scheduled by shipment and the shipment is executed, now it is time to maintain and close the shipment document in order to record all relative information and ready for the shipment cost settlement. So, save the shipment document and PGI for the delivery would be done automatically.
A shipment represents a physical goods movement between two or more locations.
For the system to create a shipment, shipping-relevant deliveries must exist.
You use Transportation Planning to group pending deliveries into shipments and then to perform the shipments.
The outbound delivery documents contain routes that the system calculates in route determination, and a transportation planning date for the delivery. Dynamic transportation planning is responsible for grouping together outbound deliveries into shipments that have at least the same route, visit plan type and the same transportation planning date. The following restrictions can be taken into for a shipment in Dynamic Transportation Planning:
Weight
Volume
Variable capacity
Number of stops
Maximum duration
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Loading units Step 3. Creating Shipment Cost Document & Cost Settlement TCode: VI01 (SAP Easy Access - Logistics - Logistic Execution - Transportation - Shipment cost - Create - Single document After creation of shipment cost doc. The document is ready settling the Shipment cost. Step 3.1. Use TCode VI02, enter shipment cost no. and press enter. Step 3.2. Then go to Overview screen Freight cost items, Select the line item and double click it. Step 3.3. Go as main menu: Item - Acc. assignment, you enter G/L acc. and cost center to which the transportation cost will be posted. On the Standard change, details - Freight cost items screen, then check the check box "Transfer", which means you will transfer the relative transportation cost to FI/CO, in this case, the system should determined which Purchase Order will used to settle the cost, so after you check the "Transfer" check box. Press save button on the current screen. Effects of Shipment cost settlement and related documents After the shipment cost settled in shipment cost document, it has the following affects:
It creates a service entry sheet that refers to the purchase order determined.
It posts acceptance of services performed.
It creates an ing document for the accruals.
Further subsequent documents are created in FI. Generally process is 1) VL01N 2) VT01 3) VL02N - PGI 4) VI01 5) ML81N - Service Entry Sheet 6) MIRO - Invoice Verification
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Diagrammatic Representation of SD Transportation Process Flow Shipping docs (VT01) are created before PGI You cannot carry out transportation planning or creation of shipment after the goods issue has been executed. Once goods issue is done it means that the material has left your premises so there is no need for a transportation planning after it. In case you need carry out the shipment documents at the end of the day you could just create the delivery documents during the day and at end of the day create the shipment documents and the goods issue.
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT Route can be manually overwritten during a sales order processing. You can re-determine the route in the outbound delivery based on weight (weight group) provided it is allowed in the configuration of the delivery type. Scheduling takes into the following times a.) Transit Time b.) Loading Time c.) Pick/Pack Time d.) Transportation Lead/Planning Time. The loading time and pick/pack time come from the shipping point whereas the transit time and transportation lead time come from the route. The system performs backward scheduling first to confirm the required quantity checking the material availability on the material availability date. If the material availability date or the transportation planning date falls before the order date, the system automatically carries out forward scheduling and will propose a future date. A delivery type can be customized to carry out rescheduling if required during the delivery processing. SHIPMENT OUTPUTS
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SAP LOGISTICS EXECUTION- TRANSPORTATION MANAGEMENT The following reports are available in transportation processing: Select Shipments: Planning Select Shipments: Utilization of Capacity Select Shipments: Free Capacity Select Shipments: Shipment Completion Select Shipments: Check-in Displaying Transportation Change Documents Report: Output for Shipments Scales List Shipment Costs List: Calculation Shipment Costs List: Settlement
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http://www.mediafire.com/view/svz777fpr8w0o2e/Systematic_Approach_to_Run_SAP_Implementation-Maintenance_Project.docx
Interfaces http://www.mediafire.com/view/2lxa6weo8zcys17/Interfacing_with_SAP.doc
Hope it is useful.... Thanking you... Regards, G.V.Shivakkumar
G.V.SHIVAKKUMAR - SAP MM WM LE Consultant
Email
[email protected] Page 37