Incoterm Based Charge Calculation in SAP Transportation Management

[Arjun_Mukherjee]

SAP TM is a comprehensive software solution that helps businesses optimize and manage their transportation operations

Various scenarios require different incoterm specifications, and ultimately, the consolidation of the freight is contingent upon the specific incoterm used, resulting in a range of charges. It is important to note that CFR, FOB, or EXW each come with unique responsibilities for both the shipper and purchaser, leading to a variety of charges that must be managed by the logistics service provider

Scenario 1: Incoterm Based Charge Calculation. Both the Charge Type are applicable based on the Incoterm

Step 1: Create Rate Table Determination Condition

Step 2: Maintain the Condition in the BRF table.

Step 3:Maintain the Rate Determination Condition in the charge Line in the Agreement

Step 4:Now Create an Delivery order in the S/4 Hana with the Incoterm  ( Reason its delivery Order as this a Basic TM integration)

Step 5: Freight Unit is reflecting the same Incoterm.

Step 6:Perform the Charge Calculation on the Freight Order

Scenario 2: Incoterm Based Charge Calculation. Only one Charge Type are applicable based on the Incoterm

Step 1: Maintain the Condition in the BRF table.

Conclusion :

The incorporation of various incoterms in different scenarios impacts the consolidation of freight and leads to a variety of charges. It is important to note that the responsibilities under CFR, FOB, or EXW differ for the shipper and purchaser, resulting in different charges that the logistics service provider must handle.