Creating Freight Settlement Documents

A freight settlement document (FSD) is a business document that takes up the transportation charges from TM and is posted to SAP MM (Materials Management) creating a purchase order and a service entry sheet requesting the verification of an invoice received from a supplier or carrier. When the invoice is received, SAP MM checks it against the data from the freight settlement document (Transaction MIRO - "Logistics Invoice Verification"). If performing an evaluated receipt settlement (ERS - "Self-billing"), the automatically generated invoice is based on the data from the TM freight settlement document.

FSDs can be used to enter the data for transportation invoicing and forwarded to SAP MM for invoice verification. The transportation charges are calculated in SAP Transportation Management based on a freight order, service order, or freight booking.

Freight charges are settled with the carrier (supplier).

The settlement includes the following:

• Assigning and transferring transportation costs to Financial Accounting to generate accruals, and assigning costs to a CO object.
• Settlement of costs with the carrier: posting payables by canceling the accruals.

You must have entered and accepted the services provided before you can transfer costs to Financial Accounting. The system automatically creates the service entry sheet based on a purchase order for external services. Before you can settle costs with the carrier, you must create an invoice using manual invoice verification or create a credit memo using the credit memo procedure.

You can create an individual FSD for one freight order, service order, or freight booking. You can create a collective FSD for multiple freight orders or freight bookings. You can also create multiple FSDs at the same time.

Freight Settlement Document Overview

An FSD contains the following information:

• General data: Document type, the purchasing organization, payment terms, document currency, and so on.
• Business partner information: Invoicing party, payee, additional business partners, which can be entered manually or automatically determined by the system.
• Orders: The business documents or the business document items that are being settled using the FSD.
• Charges: For each FSD item, the Charges tab page has the charges relevant for settlement with the carrier.

Based on a transportation requirement, the planner carries out several planning steps and create a freight order or a freight booking to subcontract the transportation activity to a carrier.

Upon settlement, the system creates a Freight Settlement Document (FSD). This document contains all relevant logistical data, as well as the charges and other commercial data. The charges can be copied over from the freight order (most common), or another charge calculation is triggered based on the freight agreement between the purchasing organization and the ordering party. It is possible to manually change charges in the FSD.

FSDs can be created online or in batch. It is possible to create a collective settlement (several freight orders are settled with one FSD).

The FSD can then be posted to the SAP MM via a Background RFC or in the case of a side-by-side S4 to TM landscape via the exchange infrastructure.

The FSD can be created in the following ways:

• You can create an individual FSD for one freight order or freight booking or a collective FSD for multiple freight orders or freight bookings. To do this, access freight orders or freight bookings from the worklist, in the relevant document overview, or in the freight settlement overview. The system automatically creates the FSD based on the data in the freight orders, or freight bookings and calculates the transportation charges.
• You can create FSDs directly out of the freight booking or freight order apps.
• You can create partial FSDs for previously invoiced freight documents.
• You can create multiple freight settlement documents using the mass creation FSD batch report.

Partial Freight Settlement Document

It is possible to create a partial FSD for an already invoiced freight document. In this case, the invoicing status of a freight order changes from Completely Invoiced to Partially Invoiced before the additional FSD is created.

It is possible to add charges to an invoiced freight order, but not to remove them.