When you sell your products to a customer, you can also take the responsibility of delivering these products to that customer. For this, you incur costs for transportation, for example, through a carrier. You can pass on these costs to your customer.
You use the integration of sales orders and deliveries to facilitate transportation planning and execution in Transportation Management (TM). The TM component creates or updates freight units directly for sales orders or deliveries. You plan transportation for these freight units by creating freight orders that you then subcontract to the carrier. The freight order determines the freight costs to be paid to the carrier. You can configure TM to distribute the freight costs in the freight order according to delivery items. You can then add the distributed costs for each delivery item to the final amount in the billing document that you send to your customer.
This involves the integration of the following processes:
- Freight orders in TM
- Pricing in SD
- Billing in SD
Transportation costs are now part of the billing document and can be invoiced to the customer. Details can be checked in the Pricing Elements section while creating the billing document. Locate the condition type, which lists the freights costs. The amount shown there is equal to the respective amount in the Freight Order under Cost Distribution > Distribution Items.
The transfer of the freight costs to the SD billing document is achieved via copy control from the delivery to the billing document using the TM freight order as a source:
In customizing, chooseSales and Distribution→Billing→Billing Documents→Maintain Copying Control for Billing Documents.
Furthermore, the pricing procedure has to include a condition type with condition function FCTM:
In customizing, choose Sales and Distribution→Basic Functions→Pricing Control→Define Condition Types.
The condition type has to be assigned to the pricing procedure.
In customizing, choose Sales and Distribution→Basic Functions→Pricing Control→Define and Assign Pricing Procedures.
Note
You can only include the freight cost in a billing document when you have one freight order document for the delivery and the freight order has only one currency in which you calculate the cost.